The recent visit of the European Commission delegation to India marks a very important moment in the India-EU relationship. This visit signifies the beginning of a new phase in their strategic partnership, which has been evolving since 1962. The agenda is broad, encompassing trade, technology, and sustainable development.
Historical Context
India and the European Economic Community established diplomatic ties in 1962. The relationship deepened with the signing of the Joint Political Statement in 1993 and the Cooperation Agreement in 1994. The first India-EU Summit took place in 2000, and the partnership was formally elevated to a Strategic Partnership in 2004.
Current Engagements
The recent meetings include discussions on the India-EU Trade and Technology Council (TTC). This mechanism aims to enhance cooperation in trade, technology, and security. Key areas of focus are artificial intelligence, semiconductors, and green hydrogen.
Trade and Economic Relations
The EU is India’s largest trading partner. Bilateral trade in goods reached $135 billion in FY 2023-24. Indian exports to the EU totalled $76 billion, while imports were $59 billion. The cumulative Foreign Direct Investment (FDI) from the EU to India stands at $117.4 billion since 2000.
Technological Collaboration
The technology partnership has gained urgency due to global competition. The Science and Technology Cooperation Agreement of 2007 underpins this collaboration. Recent agreements include a Memorandum of About on semiconductor research and high-performance computing.
Green Energy Initiatives
India and the EU are working closely on green hydrogen projects. The EU has committed €1 billion to support Indian hydrogen initiatives. Joint efforts aim to establish a green hydrogen ecosystem in India by 2030.
People-to-People Connections
The Indian diaspora in the EU plays important role in strengthening ties. In 2023-24, Indian professionals received over 20% of EU Blue Cards. More than 6,000 Erasmus scholarships have been awarded to Indian students over the last two decades.
Defence and Security Cooperation
India and the EU are enhancing defence collaboration, particularly in maritime security and the Indo-Pacific. The first joint naval exercises occurred in October 2023. Cooperation extends to counter-terrorism and disaster response.
Space Collaboration
Space cooperation is another vital area. The Indian Space Research Organisation successfully launched the EU’s PROBA-3 mission in December 2024. Collaborative projects include India’s Chandrayaan-3 and Aditya-L1 missions with the European Space Agency.
Questions for UPSC:
- Discuss the significance of the India-EU Strategic Partnership in the context of global trade dynamics.
- Critically examine the role of technology cooperation between India and the EU in addressing challenges posed by China.
- Explain the implications of the India-EU Green Hydrogen Cooperation initiative for sustainable development.
- What are the key factors influencing people-to-people ties between India and the EU? Discuss with suitable examples.
Answer Hints:
1. Discuss the significance of the India-EU Strategic Partnership in the context of global trade dynamics.
- The EU is India’s largest trading partner, with bilateral trade in goods reaching $135 billion in FY 2023-24.
- Strategic Partnership enhances cooperation in trade, technology, and security, vital in a shifting global landscape.
- Negotiations for a Free Trade Agreement have been ongoing for over a decade, emphasizing the economic potential.
- Collaboration in areas like semiconductors and AI strengthens both economies against global competition.
- The partnership promotes resilience in supply chains, essential for economic stability amidst geopolitical tensions.
2. Critically examine the role of technology cooperation between India and the EU in addressing challenges posed by China.
- Technology cooperation is crucial due to China’s advancements in AI and semiconductors, prompting a united response.
- The Science and Technology Cooperation Agreement of 2007 facilitates joint research and innovation initiatives.
- Recent agreements on semiconductor R&D and high-performance computing reflect a strategic shift towards collaboration.
- Joint efforts in digital technologies enhance security and trust, countering potential threats from China.
- Collaboration in emerging technologies positions both partners competitively on the global stage.
3. Explain the implications of the India-EU Green Hydrogen Cooperation initiative for sustainable development.
- The initiative aims to establish a green hydrogen ecosystem in India by 2030, promoting clean energy solutions.
- The EU’s commitment of €1 billion to support Indian hydrogen projects signifies strong investment and collaboration.
- Joint efforts in renewable energy enhance energy security and reduce carbon emissions, aligning with global sustainability goals.
- Green hydrogen initiatives can create jobs and encourage innovation in the energy sector, driving economic growth.
- Partnerships in green technologies position both India and the EU as leaders in the global transition to sustainable energy.
4. What are the key factors influencing people-to-people ties between India and the EU? Discuss with suitable examples.
- The growing Indian diaspora in the EU, comprising students and professionals, strengthens cultural and economic ties.
- Over 20% of EU Blue Cards issued in 2023-24 went to Indian professionals, denoting their importance in the labor market.
- More than 6,000 Erasmus scholarships awarded to Indian students reflect educational collaboration and exchange.
- Marie Sklodowska-Curie Actions funding for Indian researchers showcases support for research and innovation.
- These connections encourage mutual understanding and collaboration, enhancing bilateral relations beyond government-level interactions.
