Since early 2025, India and the European Union (EU) have accelerated their strategic cooperation. This move comes amid global geopolitical shifts and growing economic and technological challenges. Both partners aim to build a stable, mutually beneficial relationship based on five key pillars. These pillars cover economy, connectivity, technology, security, and people-to-people ties.
Economic and Trade Relations
The EU is India’s largest trading partner. In 2024, bilateral trade in goods reached EUR 120 billion, nearly doubling over the past decade. Trade in services adds EUR 60 billion. Around 6,000 European companies operate in India, employing 3 million people directly. EU foreign direct investment in India hit EUR 140 billion in 2023. Despite this growth, India’s share in EU trade remains below 2.5%. Indian investments in the EU are modest at EUR 10 billion. Both sides are negotiating a free trade agreement (FTA) to reduce tariffs and barriers, aiming to conclude by the end of 2025. Additional agreements on investment protection, geographical indications, and air transport are also in progress.
Global Connectivity Initiatives
The EU’s Global Gateway programme mobilises EUR 300 billion to enhance global infrastructure. India’s MAHASAGAR initiative complements this effort. The EU-India Connectivity Partnership, established in 2021, encourages cooperation on transport, energy, and digital links. A flagship project is the India-Middle East-Europe Economic Corridor (IMEC), designed to revive historic Eurasian trade routes. IMEC integrates maritime, rail, digital, energy, and clean hydrogen infrastructure. The EU-Africa-India Digital Corridor, featuring the Blue Raman submarine cable, will provide resilient, ultrafast data connectivity. Green Shipping Corridors are also being developed to promote sustainable maritime transport.
Cooperation on Emerging Technologies
The EU offers advanced research, digital infrastructure, and green technology expertise. India contributes a skilled workforce, a vibrant startup ecosystem, and innovation in affordable technologies. Plans include establishing EU-India Innovation Hubs and a Startup Partnership to drive collaboration in AI, multilingual datasets, and public good applications. Both partners seek to prevent misuse of sensitive technologies while promoting responsible use. The Euratom-India agreement supports peaceful nuclear research, including safety, waste management, and fusion.
Security and Defence Collaboration
Recently, the Strategic Dialogue on Foreign and Security Policy was launched. Focus areas include maritime security, cybersecurity, counterterrorism, and non-proliferation. An EU-India Security and Defence Partnership is under consideration. Negotiations on a Security of Information Agreement aim to enable classified information exchange. The EU’s Indo-Pacific strategy aligns with India’s regional stability role. Cooperation between the EU Naval Force and Indian Navy is planned for the western Indian Ocean. Both sides work to combat terrorism, terror financing, online propaganda, and emerging technology risks. Defence industry collaboration may enhance production, supply chain security, and innovation through a proposed Defence Industry Forum.
People-to-People Connections
In 2023, 825,000 Indians lived in the EU, the largest group receiving EU Blue Cards and transfer permits. Nearly one million Schengen visas were issued to Indians in 2024. Both partners aim to manage migration sensibly, balancing illegal flow control with talent mobility. Educational exchanges are expanding through programmes like the Union of Skills and Erasmus. India is a major source of international students globally. Efforts focus on making European education more attractive and recognising qualifications to support joint academic and vocational initiatives.
Questions for UPSC:
- Critically discuss the role of free trade agreements in enhancing economic ties between developing and developed regions, using India-EU relations as a reference.
- Analyse the strategic importance of digital and transport connectivity projects like the India-Middle East-Europe Economic Corridor in global trade and diplomacy.
- Examine the challenges and opportunities in international cooperation on emerging technologies such as artificial intelligence and nuclear research.
- Point out the significance of security and defence partnerships in maintaining regional stability, and estimate the impact of such collaborations on global counterterrorism efforts.
