India and European Union Relations

India-EU relations date to the early 1960s, with India being amongst the first countries to establish diplomatic relations with the European Economic Community. A cooperation agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation. At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’. The two sides adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that provided for strengthening dialogue and consultation mechanisms in the political and economic spheres, enhancing trade and investment, and bringing peoples and cultures together.

In 2022, India celebrates its 75th Year of Independence with the Government of India (GOI) launching “Azadi ka Amritsav”, an initiative to celebrate and commemorate 75 years of Indian Independence. The initiative embodies India’s socio–cultural, political, and economic identity and one critical element of building an identity is through diplomacy. This year India celebrates 60 years of friendship with the European Economic Community (now the European Union). India was one of the first countries and the first Asian country to extend diplomatic relations with the European Economic Community in 1962, when Ambassador K.B. Lall presented his credentials to Mr Walter Hallstein, the first President of the Commission of the EEC. Since then, India–EU relations have progressively developed, where it evolved into a strategic partnership in the 21st century. The reasons for the establishment of a strategic partnership between the two is not solely on the political front but also derives its roots in historical partnerships which over decades has developed India’s idea of Vasudhaiva Kutumbakam. The tales of Maharaja Jam Saheb Digvijaysinhji Ranjitsinhji are narrated in Poland till today as his courage and bravery saved over 1,000 Polish children working in the labour camps of the Red Army in the USSR. The extreme winter conditions marked the exodus of Poles from Siberia as thousands sought to seek a warmer climate in the Central and South Asian countries. Maharaja’s decision to accept the Polish children in Jamnagar began the story of Little Poland in India, where intensive efforts were made to honour the Polish culture and tradition. After WWII, the Polish refugees were repatriated around the world, but the Polish society remains indebted towards Maharaja Jam Saheb, who was awarded Poland’s highest honour in 2016 to honour him on his 50th death anniversary. Historical references such as Maharaja’s assistance truly illustrate India’s values and beliefs in its foreign policy.

Important Timeline in the India – EU Relations

Common roadmap and shared vision

The road map highlights engagement across five domains: foreign policy and security cooperation; trade and economy; sustainable modernisation partnership; global governance; and people-to-people relations.

Brief history

• India-EU relations date to the early 1960s, with India being amongst the first countries to establish diplomatic relations with the European Economic Community.
• At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’.
• The two sides adopted a Joint Action Plan in 2005 (which was reviewed in 2008) that provided for strengthening dialogue and consultation mechanisms in the political and economic spheres, enhancing trade and investment, and bringing peoples and cultures together.

What is strategic partnership?

• A ‘strategic partnership’, as the term suggests, involves a shared understanding between the two or more states involved on the nature of threats in the environment and the place of their collective power in helping mitigate the threats.

Why they are important?

• As the world’s two largest democracies, the EU and India share a commitment to protecting and promoting human rights, a rules-based global order, effective multilateralism, sustainable development and open trade.

Areas of cooperation?

• Trade – Bilateral trade between the two surpassed $116 billion in 2021-22.
• The EU is India’s second-largest trading partner after the U.S. and the second largest destination for Indian exports.
• There are 6,000 European companies in the country that directly and indirectly create 6.7 million jobs.
• Green strategic partnership – the green strategic partnership between India and Denmark aims to address climate change, biodiversity loss, and pollution.
• India-Nordic Summit – The India-Nordic Summit focused on green technologies and industry transformation that are vital for sustainable and inclusive growth.
• All this will act as a catalyst for enhanced cooperation between the two regions.
• Defense – Cooperation with the EU in the defense sector has also increased substantially.
• This is critical for India at this juncture, to reduce its hardware dependence on Russia in the backdrop of the Ukraine conflict.
• This also helps to seek diversification of its armament imports from other regions with the latest technologies in the wake of its confrontation with China.
• India and the EU regularly conduct joint military and naval exercises which reflects their commitment to a free, open, inclusive, and rules-based order in the Indo-Pacific.
• Maritime security dialogue – The first maritime security dialogue between India and European Union in 2021 focused on cooperation in maritime domain awareness, capacity-building, and joint naval activities.
• France’s on-time delivery of 36 Rafale fighter jets and willingness to offer Barracuda nuclear attack submarines to the Indian Navy reflects the growing level of trust in their relationships.
• Leading European defense equipment manufacturers are willing to partner with Indian companies for defense projects aligned with the ‘Make in India’ program.
• Another rapidly growing engagement area is the start-up and innovation ecosystem across India and Europe.
• Science and Technology Joint Steering Committee – focuses on areas such as healthcare, Artificial Intelligence, and earth sciences.
• In 2020, there was an agreement for research and development cooperation in the peaceful uses of nuclear energy between the European Atomic Energy Community and the Government of India.
• European partners acknowledge India as an important pillar in ensuring stability in the Indo-Pacific region.

What are the challenges in the relationship?

• Both parties have differing opinions and divergent interests in some areas.
• India’s reluctance to explicitly condemn Russia’s intervention in Ukraine, and the country’s increasing economic cooperation with Russia, have been one area of disagreement.
• India has called out the EU’s double standards on the same, for the EU purchases 45% of its gas imports from Russia in 2021.
• There is also ambiguity on the EU’s strategy in tackling the rise of China.
• Its muted response during the Galwan clash is a case in point.
• India’s economic, political and demographic weight could be deftly leveraged by the EU to counterbalance China’s influence across the region.
• However, there seems to be some hesitancy about this.

Way forward

• A close bilateral relation between India and the EU has far-reaching economic, political and strategic implications on the crisis-driven international order.
• Both sides should realise this potential and must further the growth of the bilateral ties with a strong political will.