India and the European Union share a vibrant Strategic Partnership which has been witnessing strong growth with wider and deeper co-operation in Political and Strategic, Trade and Commerce, Climate and Sustainability, Digital and Technology aspects as well as people-to-people ties. The India-EU Leaders’ Meeting held in May last year set new milestones with the decision to resume trade talks and the launch of India-EU Connectivity Partnership. President of the European Commission Ursula Von Der Leyen was on two–day official visit to India where both sides reviewed the progress on various aspects of the relationship and further intensify the multifaceted partnership with EU.

Opportunities for stronger India-EU ties

• The EU wants to pivot away from China. It recently signed a Comprehensive Agreement on Investment with China, which has drawn a lot of flak and its ratification has now been suspended because of diplomatic tensions.
• The European Parliament remains overwhelmingly opposed to this deal after China imposed sanctions on some of its members, in response to the EU imposing sanctions against China for its treatment of the Uyghur Muslim minority in the Xinjiang region.
• With the EU being India’s largest trading partner and the second-largest export destination, the economic logic of strong India-EU economic relations is self-evident.
• The virtual summit saw India and the EU launching an ambitious “connectivity partnership” in digital, energy, transport, and people-to-people sectors, enabling the two to pursue sustainable joint projects in regions spanning from Africa, Central Asia to the wider Indo-Pacific.
• Exports to EU: India has an untapped export potential of $39.9 billion in the EU and Western Europe. The top products with export potential include apparel, gems and jewellery, chemicals, machinery, automobile, pharmaceuticals and plastic.
• India benefits from tariff preferences under the EU’s Generalized System of Preferences (GSP) for several of these products.
• In fact, India is among the major beneficiaries of the EU’s GSP, with exports under the GSP valued at nearly $19.4 billion in 2019, accounting for nearly 37% of India’s merchandise exports to the EU.
• New emerging world order after COVID-19: As EU seeks to move away from a global supply chain that is overly dependent on China, India can emerge as its most natural ally.

Concerns in India-EU ties

There are certain challenges also in India-EU relations. Some of the areas of contention between the two are

• Trade: There have been some issues in the trade relationship between the two despite strong economic ties.
• Example: EU has criticized India's high tariffs on certain products, such as automobiles and pharmaceuticals, and has sought greater access to the Indian market for its products in these sectors.
• Global security: There have also been some differences in their approaches to security, particularly with regard to issues such as Afghanistan and the Middle East.
• Intellectual property: The EU has raised concerns about India's intellectual property regime, particularly with regard to issues such as patent protection and the enforcement of intellectual property rights.
• Example: It has criticized India's decision to issue a compulsory license for a cancer drug, which it argued undermined the intellectual property rights of the company that held the patent for the drug.

• Human rights and governance: The EU has raised concerns about human rights and governance issues in India, including issues such as religious freedom, the treatment of minorities, and the rule of law.
• Example: EU has expressed concern about the Citizenship Amendment Act 2019.

• Climate change: The EU and India have different perspectives on issues related to climate change, and this has sometimes led to differences in their approaches to addressing this global challenge.

• Differences in foreign policy: The EU and India have sometimes had differences in their foreign policy approaches, particularly with regard to issues such as the Balkans, Iran, and the Israeli-Palestinian conflict.

Road ahead

• The EU-India leaders should finalise the Free Trade Agreement that aims to improve economic and trade relations between the two nations by reducing tariffs, increasing market access, and unifying regulatory standards. Both regions should work to reduce trade barriers, such as decreasing European goods tariffs and expanding access to Indian IT and professional services.
• They should collaborate on geopolitical issues, such as China's influence and regional crises, and address security concerns through expanding counterterrorism, cybersecurity, and conflict resolution activities. Regular talks and joint strategic exercises can strengthen security collaboration.
• Collaboration in renewable energy technologies, health research, and advanced materials can lead to advancements in green technologies.
• They should focus on sustainable development projects and climate policy alignment, focusing on environmental initiatives like the Clean Ganga Project.
• Research and innovation need to be promoted through joint projects in renewable energy technologies, health, and advanced materials science.
• Cultural and people-to-people exchanges should be promoted through educational and cultural exchanges, such as cultural festivals, art exhibitions, and language courses.
• Their collaboration in global forums like the United Nations, World Trade Organisation, and G20, can help to address global challenges and promote shared values like sustainable development and global security.