10 meetings, 5 months: What to look out for in run-up to India-EU trade deal, summit

While India and the EU share broad complementarities, their partnership has often been constrained by differences in priorities and approaches. These challenges have prevented the relationship from reaching its full potential despite the strategic convergence on many global issues.
1. Stalled Trade Negotiations: The Broad-based Trade and Investment Agreement (BTIA), initiated in 2007, remains unresolved. The EU seeks market access in automobiles, wines, and dairy products, while India demands flexibility to protect domestic industries and agriculture. Disagreements also exist over data protection standards (GDPR compliance) and intellectual property rights, which affect sectors like pharmaceuticals and IT services.
2. Political Sensitivities: The EU has occasionally raised concerns on India’s domestic policies, including the Citizenship Amendment Act (2020), Jammu & Kashmir situation (2019), and farmers’ protests (2020–21). While framed as human rights issues, India perceives these as interference, creating diplomatic friction and slowing consensus on bilateral initiatives.
3. Strategic Divergence: The EU’s firm alignment with the US and NATO on the Russia–Ukraine conflict contrasts with India’s policy of strategic autonomy, which includes continued engagement with Russia for energy and defence supplies. This divergence limits joint actions in security, defence, and Indo-Pacific affairs.
4. Institutional Complexity of the EU: With 27 member states, each with its own national interests, the EU’s consensus-based decision-making slows negotiations. For example, achieving unanimity on trade, defence, or climate issues often takes months, making India–EU agreements less agile compared to bilateral deals.
5. Differing Perceptions of China: India views China as a strategic and security threat, while the EU treats it primarily as an economic competitor and partner, balancing trade interests with geopolitical caution. This difference affects cooperation on regional security, supply chains, and maritime strategy in the Indo-Pacific.
6. Other Challenges: Issues like mobility of skilled workers are constrained due to EU immigration rules. Similarly, cooperation in emerging technologies like AI, semiconductors, and green energy is slowed by differing regulatory standards and investment norms.

Future Course of Action to Strengthen India–EU Ties

The next five months leading up to the 2026 India–EU Leaders’ Summit offer a golden opportunity to translate dialogue into tangible outcomes. To make the partnership more strategic, resilient, and future-ready, India and the EU can pursue the following measures:
1. Deepen technology and innovation collaboration: Establishing joint research hubs in AI, semiconductors, green hydrogen, and biotechnology can accelerate innovation. The India–EU Trade and Technology Council (TTC), launched in 2023, can serve as a platform to operationalize collaborative projects and knowledge transfer.
2. Strengthen strategic and defence cooperation: Expanding counter-terrorism dialogues, joint naval exercises, and cyber security collaboration will enhance India’s security architecture. Coordinated defence procurement and technology sharing can also reduce dependence on external actors.
3. Operationalise connectivity projects: The India–Middle East–Europe Economic Corridor (IMEEC) can provide an alternative to China’s Belt and Road Initiative, ensuring resilient transport, trade, and digital connectivity. These corridors can also boost regional economic integration and energy security.
4. Enhance mobility and skill partnerships: Structured agreements to facilitate the movement of students, researchers, and skilled professionals can address Europe’s labour shortages while providing Indian talent with international exposure. Expansion of frameworks like the Blue Card scheme and education partnerships can institutionalize mobility.
5. Collaborate on global governance and climate action: Jointly driving reforms in the WTO, UN, and COP processes can amplify influence on trade rules, climate mitigation, and sustainable development. India and the EU can also co-develop green finance mechanisms and renewable energy initiatives to meet climate targets.
6. Leverage emerging sectors for shared growth: The EU and India can collaborate in areas like digital economy, biotechnology, fintech, and AI governance, creating a “positive-sum game” where both partners gain economic, technological, and strategic dividends.
7. Fast-track the Free Trade Agreement (FTA): Concluding the India–EU FTA can unlock access to high-value EU markets and attract foreign investment. For example, trade in goods reached USD 155 billion in 2022–23, and an FTA could push it beyond USD 200 billion by 2030, while also strengthening supply chain resilience against global disruptions.