India and EU should not allow divergence of views on some issues to dominate convergence of views on other areas
India and EU should not allow divergence of views on some issues to dominate convergence of views on other areas
While India celebrates the 75th year of its independence, it also celebrates 60 years of diplomatic relations with the European Union (EU). A cooperation agreement signed in 1994 took bilateral relations beyond trade and economic cooperation. The first India-EU summit in June 2000 marked a significant change in the development of relations. At the fifth India-EU summit in 2004, the relationship was upgraded to a ‘strategic partnership’. The two sides adopted a Joint Action Plan in 2005 to strengthen dialogue and consultation mechanisms in the political and economic spheres, increase trade and investment, and bring people and cultures closer together. The 15th India-EU Summit in July 2020 provided a common road map to guide joint action and further strengthen the partnership over the next five years. The road map highlights engagement in five domains: foreign policy and security cooperation; business and economy; Sustainable Modernization Partnership; global governance; and people-to-people relationships.
areas of cooperation
Since then the India-EU partnership has grown rapidly. Bilateral trade between the two crossed $116 billion in 2021-22. The European Union is India’s second largest trading partner after the US, and the second largest destination for Indian exports. There are 6,000 European companies in the country which directly and indirectly create 6.7 million jobs.
Beyond economic partnership, India and the EU have many avenues of cooperation. For example, the ‘Green Strategic Partnership’ between India and Denmark aims to address climate change, biodiversity loss and pollution, and the India-Nordic Summit in May focused on green technologies and industry transformation to drive sustainable and inclusive growth. are important for. All this will act as a catalyst to enhance cooperation between the two regions.
Cooperation with the European Union in the defense sector has also increased significantly. It is important for India at this juncture to diversify its weapons imports from other regions with the latest technologies to reduce its hardware dependence on Russia in the backdrop of the Ukraine conflict and in the wake of its confrontation with China. India and the European Union regularly conduct joint military and naval exercises which reflect their commitment to a free, open, inclusive and rules-based order in the Indo-Pacific. The first Maritime Security Dialogue between the two in 2021 focused on maritime domain awareness, capacity building and cooperation in joint naval activities. The timely delivery of 36 Rafale fighter jets by France and the willingness to offer the Barracuda nuclear attack submarines to the Indian Navy reflect the growing trust in their relationship. Major European defense equipment manufacturers are keen to partner with Indian companies for defense projects aligned with the ‘Make in India’ programme.
Another rapidly growing area of engagement is the start-up and innovation ecosystem in India and Europe. In addition, the Science and Technology Joint Steering Committee focuses on areas such as health care, artificial intelligence and earth sciences between the two. In 2020, an agreement was reached between the European Atomic Energy Community and the Government of India for research and development cooperation in the peaceful uses of nuclear energy.
challenges
However, challenges remain. Both have different opinions and different interests in some areas. India’s reluctance to explicitly condemn Russia’s interference in Ukraine, and the country’s growing economic cooperation with Russia, has been an area of disagreement. India has called for EU double standards, as the EU buys 45% of its gas imports from Russia in 2021. There is also ambiguity over the EU’s strategy in dealing with the rise of China. Its silent response during the Galwan conflict is an example. India’s economic, political and demographic burden can be cleverly leveraged by the EU to balance China’s influence across the region. But there seems to be some hesitation in it.
India and the EU should not allow such differences to dominate the many areas of convergence between them. The active resumption of the ambitious India-EU Free Trade and Investment Agreement in 2021 is a step in the right direction. European partners recognize India as an important pillar in ensuring stability in the Indo-Pacific region. The EU wants to be more than just a trading bloc and seeks alliances with like-minded countries like India. Indian External Affairs Minister S. Jaishankar rightly said, [India and the EU] There are political and economic poles each in a rapidly growing multipolar world. So our ability to work together can shape global outcomes.”
Rajesh Mehta is an expert on international affairs and Mohit Anand is Professor of International Business and Strategy at EMLYON Business School, France.