Sansad TV Perspective: India-EU Relations

In the series Sansad TV Perspective, we bring you an analysis of the discussion featured on the insightful programme ‘Perspective’ on Sansad TV, on various important topics affecting India and also the world. This analysis will help you immensely for the IAS exam, especially the mains exam, where a well-rounded understanding of topics is a prerequisite for writing answers that fetch good marks.

In this article, we feature the discussion on the topic: India-EU Relationship

Anchor: Vishal Dahiya

Participants: 

1. Alicia García-Herrero, Senior Fellow, BRUEGEL
2. Dr. Jagannath Panda, Director for Europe-Asia, YCAPS, Japan
3. Manjeev Singh Puri, Former Deputy Permanent Representative of India to the UN

Context: The President of the European Commission made an official visit to India with the intent to further deepen the multifaceted partnership of the European Union with India. 

The India-EU Relationship: Points of Essence

• India shares a vibrant relationship with the European Union which is determined by cooperation in the areas of politics, strategy, trade and commerce, climate and sustainability. 
• India and the EU are celebrating the 60th anniversary of their diplomatic relations and with this agreement in place, both the countries extended their confidence to take this friendship to the next level. 
• Turning the pages of history, India is recognised as the first Asian country to extend diplomatic relations with the European Economic Community (now known as European Union) in 1962. This relationship was nurtured with the progress of time and gathered momentum in the strategic areas of partnership. 
• The trade relations between India and the EU began in the 1990s as the Indian economy transformed into a liberalised one after seeking support from the International Monetary Fund (IMF) which included a comprehensive set of reforms pertaining to capital markets in India.

Read about Liberalisation in the linked article

• The joint Political Statement (in 1993) and the Cooperation Agreement (in 1994) were signed between the two countries which became the foundation of their bilateral relationship. 
• The thread of the India-EU relationship has also been strengthened in the spheres of technology, digital transformation and people to people contact. 
• The India-EU leaders’ meeting that was held in 2021 led to the milestone decision taken to revive trade talks along with the launch of the India-EU connectivity partnership. 

Read more about the India-EU Summit in the shared link.

• The EU is India’s largest trading partner accounting for 80 billion Euros worth of trade in goods which is estimated to be 11.1 % of total Indian trade. 
• The EU serves as the second-largest destination for Indian exports after the US. 

The India-EU Relationship: Opening up New Avenues 

• For the first time, India has agreed to establish a trade and technology council with the European Union to tackle various challenges in those areas. 
• The India-EU Trade and Technology Council will function as a strategic mechanism for assisting New Delhi to access the advanced technologies of the EU and to set up new standards for the crucial areas of 5G and artificial intelligence. 
• For the EU, India is the second such country after the US with which it has set up a trade and technology council. 
• The issues related to Quantum Computing, climate modelling and health-related technology were addressed by the agreement. 
• From the Indian side, the ministers of External Affairs, Commerce and Electronics and Information Technology will oversee the progress and work of the council along with several other sub-groups. 
• Both the countries expressed their need to formulate a roadmap focusing on technology, trade and security considering the rapid changes in the geopolitical environment. 
• This Trade and Technology Council will signify the emergence of a deeper strategic engagement of India with the European Union. 
• There were discussions held to prioritise energy security to diversify away from fossil fuels and increase more investment towards clean renewable energy. 
• India and the EU will cooperate further in the areas of solar energy as well as Green Hydrogen. 

EU’s Global Gateway strategy: 

• The EU’s Global Gateway strategy will create umpteen opportunities for cooperation and investments in secure and sustainable infrastructure in India and in the region. 
• This is based on the European model of trusted connectivity in partner countries and it values rule of law, human rights and international norms and standards. 
• The driving principles of the global gateway include: 
  • Smart, clean and secure investments in quality infrastructure
  • Connecting goods, people and services around the world in a sustainable way

Importance of the Trade and Technology Council:

• This council is envisaged to bring sustainable progress for both the economies through a meticulous structure to operationalise political decisions, coordinate technical work and report to the political level to ensure the implementation of the required policies. 
• According to some experts, this council is an example of a realisation by both India and the EU that China is exploiting its tech lead to promote domestic repression and carry out surveillance in other countries disrupting the supply chains. 
• This step will be a welcoming one to enliven the engagements for shaping up agreements in trade, investment and geographic indications. 

Ways Ahead:

• India and the European Union share a similar commitment towards transitioning into a sustainable and green future keeping into consideration the size, economic performance and energy needs of the two entities. This collaboration is capable of reaching the ambitious decarbonisation targets with more joint efforts on solar, hydrogen and other renewable energy sources. 
• The President of the European Commission participated in the Raisina Dialogue wherein she discussed the roadmap to confront the geopolitical challenges along with an emphasis on the current development, the aftermath of the pandemic, clean energy and digital transitions. 
• The Russia-Ukraine crisis will not only impact the future of Europe but will significantly influence the Indo-Pacific region. As both India and the EU derive their shared interest in the region, a strategic vision can be developed for a peaceful and prosperous Indo-Pacific. It is time for Europe to refurbish its Indo-Pacific strategy. 

Explore more of the Indo Pacific in the shared link.

• The setting up of the Trade and Technology Council will broaden the avenues to bring India and the EU closer to associate the matters of common interest for a progressive and resilient future. 
• Moreover, the visit by the President of the European Commission to India ignites an expectation of moving ahead with the India-EU Free Trade Agreement (FTA). 
• There is a group of experts who asserted that the EU should not look at India only in the context of China. However, there are potential areas that can be explored to create greater opportunities for the Indo-EU relationship to flourish further. 
• In the midst of geopolitical challenges, the time is absolutely ripe for India and the EU to renegotiate their trade deal and trust each other to modify and diversify their multidimensional relations. 
• Therefore, this level of engagement between the two countries has been perceived as a strong basis to intensify mutually beneficial and deeper strategic cooperation.

Read more summaries of Perspective in the link.

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