Deepening EU-India relations despite apprehensions regarding Moscow connections
The European Union and India are on the brink of a significant shift in their relationship, as both parties seek to foster new alliances in the face of tariffs imposed by the U.S. According to projections, India is expected to become the world's third largest economy by 2030, making it an attractive partner for the EU.
In a series of recent developments, Indian Prime Minister Narendra Modi met with Russian President Vladimir Putin at a summit in China, and negotiations for a free trade agreement between the EU and India were relaunched in 2022 and have gained pace since the re-election of U.S. President Donald Trump.
The European Commission has proposed to deepen cooperation with India in areas such as defense, technology, and trade. This expanded vision for the relationship extends beyond trade, including defense, security, and cooperation in various sectors. The EU sees India as a fellow upholder of the rules-based multilateral order.
The EU's vision for India includes cooperation in third countries, particularly in Africa and South Asia. The EU and India may agree on a defense and security partnership similar to what they have with Japan and South Korea. Brussels is also planning trade agreements with Mexico, Mercosur, India, and Indonesia.
Negotiations for the free trade agreement are in the final stages, with a goal to conclude it by the end of the year. The EU envisions negotiations with India on investment protection and boosting air transport. The European Commission aims to engage with India in curtailing Russia's military and preventing circumvention of EU sanctions.
India has increased purchases of Russian oil since Russia's full-scale invasion of Ukraine in 2022, a move that has not gone unnoticed by U.S. officials. They have recently called on G7 and EU states to consider imposing tariffs on China and India over their Russian oil purchases.
Despite these challenges, the EU and India could collaborate on securing supply chains, green hydrogen, decarbonization of heavy industry, and research and innovation. The potential benefits from the European Union, China, and Russia are also being considered by India.
The EU Commissioner who presented plans to deepen cooperation with India in defense, technology, and trade on Thursday is not explicitly named in the search results, but the EU's external affairs chief, Kaja Kallas, has been prominently mentioned in related discussions about EU-India relations and warnings regarding cooperation with Russia.
In addition, Indian troops have participated in a Russian-led military exercise, further indicative of the complex and evolving relationship between the two parties. As the negotiations progress, it remains to be seen how the EU and India will navigate these challenges and cement their partnership for the future.
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