This month, the European Union unveiled its new technique to “reinforce prosperity and safety” with India.
The Joint Communication to the European Parliament and the Council proposes structuring the India-EU cooperation agenda round 5 focus areas: prosperity and sustainability; expertise and innovation; safety and protection; connectivity and world points; and enablers throughout pillars.
Furthermore, it dispels any notion that the EU’s “Competiveness Compass” and India’s “Atmanirbhar Bharat” focus are at odds. As a substitute, the EU Joint Communication on a New Strategic EU-India Agenda commits Europe’s regulatory experience, single market entry, and joint innovation to assist India’s inclusive and sustainable development.
The EU Joint Communication affirming Europe’s intent for deeper engagement with India comes amid ongoing India-EU commerce negotiations for a complete Free Commerce Settlement (FTA). India’s Minister of Commerce Piyush Goyal not too long ago stated that it is necessary “to not let the seek for an ideal deal change into the enemy of progress,” including that the course of negotiations is “extraordinarily optimistic.”
This sentiment was echoed by EU Commissioner for Commerce and Financial Safety (Interinstitutional Relations and Transparency) Maros Sefcovic, who stated that India-EU commerce negotiations have reached an unprecedented degree of “seriousness, mutual belief, and shared ambition.” He even stated that efforts are being “maximized to finalize the negotiations by the top of the 12 months.”
This shared emphasis on conducting an FTA stems from the huge untapped potential of India-EU ties. In 2024, India-EU commerce in items reached 120 billion euros, making a rise of about 90 p.c over the previous decade. This was coupled with providers commerce rising to 60 billion euros. Round 6,000 European firms function in India, and EU FDI in India reached 140 billion euros in 2023 – virtually doubling over 5 years. Regardless of this encouraging trajectory, India accounts for simply 2.5 p.c of the EU’s whole commerce.
Therefore, at the same time as the 2 sides navigate the intensive scope of commerce negotiations, the EU Joint Communication on India identifies “important untapped potential” between the “pure strategic companions,” amid world instability brought on by “weaponization of dependencies, unilateral commerce practices, and widening financial asymmetries.”
This reference to challenges for deeper India-EU cooperation holds particular significance amid the worldwide implications of the China-U.S. tech rivalry.
Amid China-U.S. commerce tensions, Beijing’s April 2025 resolution to require licenses for exports of uncommon earth alloys, mixtures, and magnets sparked issues for manufacturing operations the world over. Not like China’s December 2024 resolution on banning exports of gallium, germanium and antimony for the US, the worldwide scope of the April 2025 resolution demonstrated Beijing’s willingness to leverage its maintain over manufacturing and refining of crucial minerals.
Furthermore, the Trump-Biden-Trump continuity on limiting China’s entry to U.S.-made crucial tech parts raised compliance pressures for third nations. Not too long ago, Malaysia introduced allow mandates for export of U.S. AI semiconductors to clamp down in opposition to allegations of transshipment of tech parts to China. Equally, Singapore has cracked down in opposition to entities reportedly concerned in routing of Nvidia’s chips to China’s DeepSeek.
The Trump administration has additionally continued Biden administration efforts to degree the worldwide taking part in subject for American firms complying with U.S. restrictions on China’s entry to chip-making tools and upkeep providers. This consists of looking for extra compliances from Dutch and Japanese firms, regardless of Tokyo and Amsterdam aligning export mandates with U.S. rules shortly after President Donald Trump assumed workplace in January 2025.
The influence of those widespread pressures of regulatory compliance was additionally obvious within the EU Joint Communication on India. It underscored that the 2 sides should “implement strong measures to forestall the unauthorized switch or misuse of delicate applied sciences and information.”
Extra broadly, the China-U.S. tech rivalry has influenced an adaptive method the world over. Like-minded nations are looking for long-term tech partnerships and collaborating on provide chain resilience, whereas additionally supporting indigenous efforts in tech domains. This development has additionally been obvious in Indian and European initiatives.
Given this alignment on adapting to pressures of the China-U.S. tech rivalry, the EU Joint Communication rightly identifies “Expertise and Innovation” as a devoted cooperation monitor. This consists of figuring out precedence areas beneath the India-EU Commerce and Expertise Council (TTC), which was established in 2022 as a consultative ministerial platform to establish convergences on the intersection of commerce and tech.
The EU Joint Communication recommends that the India-EU TTC prioritize the EU-India Semiconductor Settlement, cooperation on inexperienced applied sciences, and an early-warning system for Energetic Pharmaceutical Components (APIs).
Such a directed focus beneath the India-EU TTC may also help foster a collaborative analysis and growth tradition between India and Europe, via analysis partnerships, cross-pollination between start-up ecosystems, and joint skilling and growth applications.
India and the EU may additionally draw on distinctive strengths, similar to India’s profitable deployment and growth of Digital Public Infrastructure (DPI) platforms. Arrange beneath the “Digital India” push, which celebrates its tenth anniversary this 12 months, India’s DPIs have ushered in a revolution of economic inclusion, digital identity-based authentication, and clear digital governance. The large adoption of digital platforms has additionally bolstered India’s start-up ecosystem within the domains of fintech, edtech, and healthtech.
On this facet as nicely, the EU Joint Communication makes some pertinent suggestions like organising “EU-India Innovation Hubs” and “Blue Valleys” as multistakeholder convening platforms for funding facilitation, requirements alignment, cross-sectoral collaboration, and many others.
Therefore, the recently-announced EU technique on India accords new momentum to precedence areas beneath the India-EU TTC and efforts to develop institutional and talent-mobility bridges between Indian and European tech ecosystems.
