The India-European Union (EU) partnership has gained fresh momentum in 2025. With shifting global alliances, Europe is emerging as a steady and reliable partner for India. The upcoming India-EU leaders’ summit in February 2026 will deepen cooperation across multiple sectors. Weekly discussions are underway to prepare for this key event. The EU recently released a strategic agenda outlining the future of India-EU relations. This agenda rests on five main pillars that guide their collaboration.
Economic and Trade Relations
The EU is India’s largest trading partner and India is the EU’s biggest partner in the Global South. Bilateral trade in goods reached EUR 120 billion in 2024, nearly doubling in ten years. Trade in services adds EUR 60 billion. About 6,000 European firms operate in India, employing 3 million people directly. EU foreign direct investment in India hit EUR 140 billion in 2023, doubling over five years. However, Indian investment in the EU remains low at EUR 10 billion. Both sides aim to conclude a free trade agreement by the end of 2025 to reduce tariffs and boost trade. Negotiations are also ongoing for investment protection, air transport, and geographical indications agreements.
Global Connectivity Initiatives
The EU’s Global Gateway programme mobilises EUR 300 billion globally for energy, digital, and transport infrastructure. India’s MAHASAGAR initiative complements this. The two partners formalised the EU-India Connectivity Partnership in 2021. A flagship project is the India-Middle East-Europe Economic Corridor (IMEC), reviving historic Eurasian trade routes through integrated maritime, rail, digital, and clean energy networks. The EU-Africa-India Digital Corridor, including the Blue Raman submarine cable, will connect Europe and India with secure, high-speed data links. Green Shipping Corridors are also being developed to promote sustainable maritime trade.
Collaboration on Emerging Technologies
The EU offers advanced research, digital infrastructure, and green technology expertise. India contributes a skilled workforce, large digital economy, and strong startup ecosystem. Plans include EU-India Innovation Hubs and a Startup Partnership to boost AI, multilingual datasets, and AI for public goods like healthcare and climate action. Both sides aim to prevent misuse of sensitive technologies. The Euratom-India agreement supports peaceful nuclear energy cooperation covering safety, waste management, and fusion research.
Security and Defence Cooperation
Since June 2025, the Strategic Dialogue on Foreign and Security Policy has accelerated India-EU defence ties. Dialogues focus on maritime security, cybersecurity, counterterrorism, and non-proliferation. Talks on a Security of Information Agreement will enable classified information exchange. The EU’s growing Indo-Pacific engagement aligns with India’s role in regional stability. Cooperation is planned between the EU Naval Force and Indian Navy in the western Indian Ocean. Joint efforts target terror financing, online propaganda, and emerging tech risks. Defence industry collaboration could boost innovation, supply chain security, and production capabilities.
People-to-People Connections
In 2023, 825,000 Indians lived in the EU, the largest group receiving EU Blue Cards. Nearly one million Schengen visas were issued in India in 2024, easing travel. Both sides aim to manage migration effectively, balancing illegal flow control with talent mobility. Educational exchanges will expand via Erasmus and the Union of Skills. India is a major source of international students worldwide. Efforts include recognising qualifications, joint academic programmes, satellite campuses, and language training to attract top talent to Europe.
Questions for UPSC:
- Taking example of India-EU trade relations, discuss the role of free trade agreements in enhancing bilateral economic cooperation.
- Examine the strategic importance of connectivity projects like the India-Middle East-Europe Economic Corridor in regional geopolitics and global trade.
- Analyse the challenges and opportunities in international cooperation on emerging technologies such as artificial intelligence and nuclear energy, with examples from India and the European Union.
- Discuss in the light of India-EU security cooperation, how regional security partnerships contribute to maintaining stability in the Indo-Pacific region.
