sWyden will take over the Presidency of the Council of the European Union on 1 January 2023 at a transformative inflection point in European and global politics. The power change in the presidency of the Council will have an impact on its relations with the European Union and other countries around the world, including India.
In recent years, India’s ties with Europe have grown qualitatively stronger in line with volatile international dynamics, including simultaneous tensions with China and the need for greater cooperation in the Indo-Pacific region. strategic elements To partnership. India stands with India despite differing stand on Russia’s war in Ukraine neutrality and europe is imposing nine packages of sanctions There are differences of opinion on whether to punish Russia well managed Without hijacking the entire relationship, through effective communication and a better understanding of each other’s strategic compulsions.
Beyond close ties with traditional European powers such as the European Union and France, India has constructively enhanced its relations with smaller European states important link To expand its presence across Europe. In this context, the Nordic region comprising Sweden, Denmark, Finland, Norway and Iceland has emerged among the brightest spots in India’s relations with Europe. The two bilateral India-Nordic summits, with the United States being the only other country to have summit-level cooperation with the region, have resulted in sustained collective engagement.
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Among the Nordics, relations with Sweden are progressing with the fastest, immense progress bilateral cooperation in the areas of trade, innovation and energy transition. In 2018, Sweden hosted First India-Nordic Summit PM Modi, led by PM Lufven, is the first Indian leader to visit Sweden in 30 years. In 2019, the Swedish king Visited India. up to speed 2nd India-Nordic Summit 2022 despite the backdrop of difficult global conditions post-pandemic economic recovery and the war in Ukraine. On the question of India’s increased purchase of oil from Russia, Sweden’s Minister for International Development and Foreign Trade, Johan Forsel, has called it India’s ‘internal policy’, saying that Sweden would not intervene. The Swedish presidency has come at a favorable juncture for India, considering how relations between the two countries are already on a fast track.
The role of the six-month rotating Presidency of the Council of the European Union has often had a definite and positive impact on Europe’s relations with India. During french presidency In January 2022, France prioritizes and organizes European cooperation in the Indo-Pacific region Indo-Pacific Ministerial Forum In Paris, it coincides with India’s interest in ensuring equal distribution of power in the region. Succeeding czech presidency put in mid 2022 Cooperation with Taiwan On the EU agenda, coinciding with European tensions with China rising tensions In the Taiwan Strait tension, again aligning with India’s interest in balancing China. Most importantly, during the Portuguese presidency in January 2021, when relations with India Highest priorityHistorical EU-India Leaders’ Meeting Organized in the 27+1 format that previously extended only to the United States. it became very important relaunch The stalled India-European Union Free Trade Agreement talks for almost a decade Since 2013. Thus, the efforts of the Portuguese put the India-EU FTA firmly back on the table. three rounds Number of talks taking place since the revival of talks in June 2022.
As Europe grapples with rising inflation and an energy crisis, the Swedish Council presidency could not have come at a better time. Given their successful state models that combine high levels of economic growth with social well-being, the wealthier Nordic nations, among which Sweden has highest gross domestic product, There is great sway at the EU level. Sweden is one of the most pro-free trade nations in the world, largely dependent on exports for much of its prosperity. Thus, it is no surprise that Sweden has shed light on High on the agenda of progress on the EU’s impending trade deals with India, Australia, Indonesia and Latin American countries is the need to strengthen Europe’s economic competitiveness among its top priorities during the presidency. it’s the refreshing contrast protectionist French Presidency, which was good for India through a security lens, but where were the trade deals frozen given their potential impact on farmers and other voter constituencies french presidential election In April.
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Swedish companies and technologies such as Ericsson, Skype, Bluetooth and Spotify are household names in India. yet, bilateral trade between nations, which was US$ 2.1 billion in 2018-19 but US$ 1.7 billion out of the total in 2020-21India-Nordic trade worth $13 billion, declined. And despite India emerging as the world’s fifth-largest economy and Sweden’s third-largest trading partner in Asia after China and Japan, the gap with China in overall Sino-Nordic trade in the US is huge. Is.$70 billion.
Sweden, the wider Nordic region, and indeed the European Union as a whole, see India as a huge market with immense opportunity and potential for further economic engagement. Thus, to take forward the EU-India Free Trade Agreement negotiations and achieve certain deliverables on firmly on the agenda Sweden’s presidency of the European Union. in India also renewed enthusiasm Towards trade deals as evident in the recently signed deals with the UAE and Australia.
Over the years, several mechanisms have been put in place to promote two-way trade relations such as Sweden India Business Council, and trade promotion campaigns such as ‘Time for India’, have been established. in the coming Uttar Pradesh Global Investors Summit By early 2023, the state government of Uttar Pradesh has invited Many Swedish businesses give back to the community interest There in investment of INR 15,000 cr.
Nevertheless, it is through FTAs that the greatest trade potential can be unlocked with India-EU bilateral trade expected to double from the current US$110 billion. Therefore, it is in the area of trade that Sweden’s presidency will be most beneficial to India, where Sweden’s active support can move the dialogue forward and iron out some of the differences. Indeed, just before assuming the presidency, Forsell visited India and met with Indian Minister of Commerce and Industry Piyush Goyal, where he said that Sweden would act as a “honest broker” negotiating and reducing trade tariffs would be a “Great deliverable” during the presidency.
Furthermore, the EU-China Comprehensive Agreement on Investment is still waiting for approval In the European Parliament, Transatlantic Trade and Investment Partnership stays frozen over time, and the spark of the new US Inflation Reduction Act business lines with the European Union. As tensions rise with China and the US, Europe’s top trading partners, they present an opportunity for India to expand its trade with the continent. In fact, the deterioration of Sweden’s own bilateral relations with China can be traced back further Punishment Swedish bookseller Gui Minhai in China.
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The pandemic and the war in Ukraine have forced the European Union to rethink its trade strategies through the prism of geopolitics. Europe’s experience of Russia and China’s respective energy and markets is leading to a resurgence in value-based relations for the EU, with a priority to deepen free trade with like-minded democracies that seek a rules-based order. obey, and where less likely to weaponize supply chains for geopolitical ends. With its unmatched penchant for free trade, Sweden is leading the charge, with a special focus on India. as Swedish Foreign Minister Tobias Billström reiterated, “It is a lethal environment for democracies, especially small ones”. For India, economist Arvind Panagariya recommended Instead of responding to China’s border violations by limiting trade ties, which will ultimately harm India’s development, India should expand its trade with the EU and the UK through FTAs.
It would be useful for New Delhi and Stockholm to focus first on trade to meet common goals while capitalizing on the strength of their substantial bilateral relationship as a foundation for greater cooperation at the Brussels level. Through its Presidency of the Council, pragmatic and innovative Sweden aims to inject new momentum into the FTA negotiations. Pending resolution of long-standing complex issues on liquor, agriculture, and automobiles, the road ahead will remain bumpy and the prize elusive, with the agreement unlikely to be concluded even in 2023. Nevertheless, even with so much political will, there is legitimate optimism for significant progress in the talks.
While there are many reasons to celebrate the growing “strategic” dimension in the India-EU partnership, the greatest potential still lies in the area of trade where the relationship holds the most benefits for the world’s fastest growing and largest economy. and get concrete results. Single market, through removal of trade barriers and ease of market access. Thus, the best way to strengthen and strengthen India-EU relations remains through the conclusion of FTAs. Until this is achieved, the FTA will cast a shadow over the relationship and affect other areas of cooperation.
Shayari Malhotra is an Associate Fellow for Europe with ORF’s Strategic Studies Program. Thoughts are personal.
this article originally appeared ORF website.