The Prime Minister of India recently participated in the historic India-European Union (EU) Leaders’ Meeting. This marked a first for the EU, where the meeting was held in an inclusive EU+27 format, involving leaders from all 27 member nations, the President of the European Council, and the European Commission. The agenda was set by the Portuguese Presidency of the Council of the EU, focusing on several pressing issues including free trade negotiations, connectivity partnerships, climate change, technology, and strengthening partnerships.
Resumption of Free Trade Negotiations
One of the key topics covered during the meeting was the agreement to restart free trade discussions. These discussions, aimed to establish the Bilateral Trade and Investment Agreement (BTIA), had been suspended. Talks surrounding this wide-ranging Free Trade Agreement (FTA) between India and the EU were initiated in 2007 but came to a halt in 2013 due to differences over market access and movement of professionals. The EU was India’s main trading partner in goods for the fiscal year 2019-20, surpassing China and the US with total trade nearing USD 90 billion.
Launch of a Comprehensive Connectivity Partnership
India and the EU inaugurated a comprehensive ‘Connectivity Partnership’, designed to boost digital, energy, transport, and people-to-people connectivity. This initiative is rooted in shared principles of social, economic, fiscal, climate, and environmental sustainability along with respect for international law and obligations. It aims to attract private and public financing for connectivity projects and harbors the potential to stimulate new synergies supporting connectivity initiatives in third countries, specifically the Indo-Pacific region. The Pune Metro rail project received the second installment of USD 150 million from the EU during the meeting.
Commitment to Climate Change Goals
The conference highlighted the mutual commitment of India and the EU towards achieving the objectives of the Paris Agreement. Both parties agreed to bolster joint efforts for mitigation, adaptation and resilience towards climate change impacts, and providing resources including finance with regards to Conference of the Parties (COP 26). The EU’s decision to join the Coalition for Disaster Resilient Infrastructure (CDRI) was applauded by India.
Enhancement of Technological Cooperation
India and the EU concurred to advance bilateral cooperation on emerging technologies such as 5G, Artificial Intelligence (AI), Quantum and High-Performance Computing. This will be accomplished through the early implementation of the Joint Task Force on AI and the Digital Investment Forum.
Strengthening Partnership
The meeting signaled an intent to strengthen the India-EU strategic partnership, underpinned by shared commitment to democracy, fundamental freedoms, rule of law, and multilateralism. The EU and its member states were acknowledged by India for their assistance during its second Covid wave. Furthermore, India requested the EU’s support for its joint proposal with South Africa for a TRIPS waiver on vaccine production-related patents in the WTO.
Future Projections
The India-EU Leaders’ Meeting has marked a significant milestone by providing new direction to the India-EU Strategic Partnership and reinvigorating efforts to implement the ambitious India-EU Roadmap 2025 adopted at the 15th India-EU Summit held in July 2020. A comprehensive trade agreement that establishes strong rules, removes trade barriers in goods, services, and investments, and opens up free markets is essential. Enhanced business cooperation between EU and India can diversify their strategic value chains and reduce economic dependencies, particularly on China. The future should focus on addressing mutual trust deficits and facilitating people’s mobility and connectivity to foster mutual understanding and create opportunities for growth and innovation.
