Recently, the spotlight was on the interaction between Indian officials and ambassadors, alongside high commissioners of European and Oceania countries based in New Delhi. The meeting revolved around trade and economic cooperation. As major trading partners and sources of investment for India, Europe and Oceania countries hold substantial untapped potential that can be reached.
Indian-European Union (EU) Relations: Trade and Economic Cooperation
In 2017-18, the trade between India and Europe accounted for USD 130.1 billion. During that year, both India’s imports from, and exports to, the EU registered double-digit growth. The EU, as an entire entity of 28 separate countries, is India’s largest regional trading partner. Moreover, in 2015, India ranked as the ninth largest trading partner of the EU. For more than a decade, starting from 2007, they have been engaged in the negotiations of a bilateral Broad-based Trade and Investment Agreement (BTIA).
The EU: Understanding the Bloc
The European Union (EU) comprises 28 countries, which are responsible for governing common economic, social, and security policies. The Maastricht Treaty—effectuated on November 1, 1993—is the founding document of the EU. This treaty sought to reinforce European political and economic integration by introducing a single currency (the euro), a unified foreign and security policy, and common citizenship rights. Furthermore, it brought about cooperation advancements in immigration, asylum, and judicial affairs.
Pending Matters in India-EU Trade Relations
Despite 13 rounds of deliberations, the BTIA has yet to be concluded and the issues persist. Disagreement over Intellectual Property protection standards remains a major bone of contention. Lowering tariffs on dairy and poultry products, as well as wines and spirits from Europe is another demand from the EU. However, reducing tariffs in these areas could adversely affect Indian industries. India’s demands for easy visa requirements for professionals, flexible regulations, and better access to services are being contested by Europe due to concerns about increased unemployment.
India-Oceania Relations: The Trade Landscape
Australia and New Zealand dominate India’s trade relationship with the Oceania region. India’s trade in goods and services with Australia was approximately US15.6 billion in 2016. Moreover, India ranked as New Zealand’s 11th largest bilateral trading partner in 2017, with total trade in goods and services valued at US1.91 billion.
Key Facts
| Major export products from Australia to India | Coal, education-related travel, vegetables, gold |
|---|---|
| Major export products from India to Australia | Refined petroleum, business services, pharmaceuticals |
| India’s ranking as New Zealand’s trading partner (2017) | 11 |
| Investment by Oceania companies in India (April 2000 – December 2018) | USD 1.2 billion |
Pacific Island Forum (PIF) and India’s Association
PIF is a regional platform formed in 1999 as the successor to the earlier South Pacific Forum, established in 1971. India is a dialogue partner of PIF. During India’s Prime Minister visit to Fiji in November 2014, he launched the Forum for India–Pacific Islands Cooperation (FIPIC).
Challenges Encountered in Trade with Pacific Island Countries
The dynamics of trade between India and the Pacific Island Countries (PICs) have been hindered by various factors including the small populations and market sizes in these islands, and their distance from India. To overcome these barriers, India has established a Trade Office for Pacific Island Forum countries in India. The FIPIC Trade Office, based in New Delhi, aims to foster the development of micro, small and medium Enterprises and improve Market Access for the Pacific Islands.
Last Modified: February 6, 2024