Why in news?

As the U.S. under President Trump disrupts long-standing global alignments, Europe is presenting itself as a stable and reliable partner for India. This shift is underscored by the upcoming India–EU leaders’ summit scheduled for February 2026, which will build upon European Commission President Ursula von der Leyen’s earlier visit to India.

The EU has also released a strategic agenda outlining its vision for ties with India, anchored on five key pillars and a commitment to mutual benefit.

This framework signals Europe’s intent to position itself as India’s “all-weather” friend and a counterbalance to the uncertainties in U.S. foreign policy.

What’s in Today’s Article?

• Five Pillars of the New India–EU Strategic Agenda

Five Pillars of the New India–EU Strategic Agenda

• The India–EU Strategic Agenda is built on five core pillars:
  • Prosperity and Sustainability – covering trade, investment, resilient supply chains, and sustainable development.
  • Technology and Innovation – focusing on critical technologies, digital infrastructure, and joint research.
  • Security and Defence – emphasising new agreements, regional stability, and countering traditional and hybrid threats.
  • Connectivity and Global Issues – strengthening cooperation in third countries and global governance.
  • Enablers Across Pillars – promoting skills mobility, mutual understanding, business linkages, research collaboration, and stronger institutional frameworks for EU–India relations.
• Prosperity and Sustainability: Strengthening India–EU Economic and Trade Ties
  • The EU is India’s largest trading partner, while India is the EU’s biggest partner in the Global South.
  • In 2024, bilateral trade in goods reached €120 billion — a 90% rise over the past decade — with services adding another €60 billion.
  • Nearly 6,000 European companies operate in India, directly employing 3 million people and indirectly supporting millions more.
  • EU foreign direct investment has surged to €140 billion in 2023, nearly doubling in five years.
  • Despite these gains, India accounts for less than 2.5% of the EU’s trade, and Indian investment in the EU stands at only €10 billion.
  • To expand ties, both sides are pushing to finalise a Free Trade Agreement (FTA) by 2025 to cut tariff and non-tariff barriers.
  • They are also negotiating an Investment Protection Agreement, a bilateral macroeconomic dialogue, a Geographical Indications pact, and a comprehensive air transport agreement, all aimed at deepening economic cooperation.
• India–EU Collaboration on Emerging Technologies
  • India and the EU are leveraging complementary strengths to drive innovation.
  • The EU offers world-class research, regulation, and green-digital expertise, while India contributes a skilled workforce, vast datasets, a thriving startup ecosystem, and frugal innovation.
  • Planned initiatives include EU-India Innovation Hubs for key technologies and an EU-India Startup Partnership with the European Innovation Council and Start-up India.
  • Cooperation will focus on AI, particularly large language models, multilingual datasets, and AI applications in healthcare, agriculture, and climate action.
  • Both sides are working on safeguards to prevent unauthorised transfer or misuse of sensitive technologies, aligning with global stability and democratic values.
  • Additionally, the Euratom-India agreement will boost collaboration in peaceful nuclear energy, including reactor safety, waste management, nuclear security, and fusion research.
• India–EU Connectivity and Strategic Corridors
  • The EU’s Global Gateway initiative (€300 billion) and India’s MAHASAGAR programme provide strong platforms for joint connectivity efforts.
  • Their 2021 Connectivity Partnership has laid the foundation for cooperation in energy, transport, and digital infrastructure.
  • A flagship project is the India-Middle East-Europe Economic Corridor (IMEC), which integrates maritime, rail, digital, energy, and clean hydrogen networks to revive historic Eurasian trade routes.
  • Within this, the EU-Africa-India Digital Corridor is advancing through the 11,700 km Blue Raman submarine cable system, linking Europe and India via the Mediterranean, Middle East, and East Africa.
    • This will ensure ultrafast, secure, and resilient data connectivity.
  • Additionally, India and the EU are developing Green Shipping Corridors to promote sustainable maritime trade and reduce reliance on carbon-intensive transport routes, further boosting commercial and strategic opportunities.
• Deepening India–EU Security and Defence Cooperation
  • India and the EU are strengthening ties through the Strategic Dialogue on Foreign and Security Policy (2025), with thematic discussions on maritime security, cybersecurity, counterterrorism, and non-proliferation.
  • A formal EU-India Security and Defence Partnership is under consideration.
  • Both sides are negotiating a Security of Information Agreement to enable classified information sharing.
  • Cooperation will also expand in the Indo-Pacific, with proposed arrangements between the EU Naval Force and Indian Navy to boost coordination in the western Indian Ocean.
  • Joint efforts include combating terrorism, terror financing, online propaganda, drug trafficking, and risks from emerging technologies.
  • On the industrial front, increased collaboration between Indian and EU defence industries aims to strengthen supply chain security, boost innovation, and expand production capabilities.
  • Plans include establishing an EU-India Defence Industry Forum to connect businesses, share best practices, and explore cooperation opportunities.
• Strengthening India–EU People-to-People Ties
  • India and the EU are deepening social and cultural links.
  • In 2023, 825,000 Indians lived in the EU, forming the largest group receiving Blue Cards and intra-corporate transfer permits.
  • Travel has become easier, with nearly one million Schengen visas issued in 2024, many as multiple-entry.
  • Educational exchanges are expanding through initiatives like the Union of Skills and Erasmus, making Europe more attractive for Indian students amid U.S. restrictions under Trump.