India-EU Strategic Agenda

Source: The post India-EU Strategic Agenda has been created, based on the article “Explained: India-EU strategic agenda” published in “Indian Expres” on 27 September 2025. India-EU Strategic Agenda.

UPSC Syllabus: GS-2- Bilateral, Regional and Global Groupings and Agreements involving India and/or affecting India’s interests

Context: The EU recently issued a Strategic Agenda for India–EU ties, outlining cooperation across five main pillars: economy & trade, global connectivity, emerging technologies, security & defence, and people-to-people ties.

Economy & Trade

1. The EU is India’s largest trading partner, while India is the EU’s largest partner in the Global South.
2. In 2024, bilateral trade in goods reached EUR 120 billion (up 90% over a decade), with EUR 60 billion in services trade.
3. Around 6,000 European companies operate in India, directly employing 3 million people.
4. EU FDI in India reached EUR 140 billion in 2023, nearly doubling in five years.
5. However, India accounts for less than 2.5% of the EU’s total trade and invests only EUR 10 billion in the EU, indicating scope for growth.
6. Both sides aim to conclude a Free Trade Agreement (FTA) by the end of 2025, along with agreements on Investment Protection (IPA), Geographical Indications, Air Transport, and a Bilateral Macroeconomic Dialogue.

Global Connectivity

1. The EU’s Global Gateway (EUR 300 billion) and India’s  MAHASAGAR (Mutual and Holistic Advancement for Security and Growth)  support energy, digital, and transport infrastructure.
2. The 2021 EU–India Connectivity Partnership underpins joint infrastructure projects.
3. Flagship projects include the India–Middle East–Europe Economic Corridor (IMEC) integrating maritime, rail, energy, digital, and clean hydrogen links.
4. The EU–Africa–India Digital Corridor with the 11,700 km Blue Raman submarine cable system will deliver ultra-high-speed, secure data connectivity from Europe to India via the Mediterranean, Middle East, and Eastern Africa.
5. Both partners are collaborating on Green Shipping Corridors to support sustainable maritime connectivity and reduce carbon-intensive routes.

Emerging Technologies

1. The EU brings world-class research, digital infrastructure, and green tech expertise, while India offers skilled talent, vast datasets, and a vibrant startup ecosystem.
2. Plans include creating EU–India Innovation Hubs on key technologies, and an EU–India Startup Partnership involving the European Innovation Council and Start-up India.
3. Cooperation will cover AI domains (large language models, multilingual NLP, public good applications in health, agriculture, climate), and data-sharing frameworks to prevent misuse of sensitive technologies.
4. Both sides will also collaborate under the Euratom–India agreement on nuclear safety, radioactive waste management, nuclear security, and fusion research.

Security & Defence

1. The EU–India Strategic Dialogue on Foreign and Security Policy launched in June 2025 enhances cooperation on maritime security, cybersecurity, counterterrorism, and non-proliferation.
2. Negotiations are beginning for a Security of Information Agreement to enable classified information exchange.
3. The EU’s Indo-Pacific engagement complements India’s regional role, including proposed arrangements between the EU Naval Force and Indian Navy for greater information-sharing in the western Indian Ocean.
4. Cooperation will extend to combating terror financing, online propaganda, and security risks from emerging tech, and may include tackling drug trafficking.
5. Defence-industrial cooperation is planned via an EU–India Defence Industry Forum, which will boost research, innovation, and reliable supply chains.

People-to-People Ties

1. In 2023, 825,000 Indian citizens lived in the EU, making them the largest recipients of EU Blue Cards and intra-corporate transfer permits.
2. Nearly one million Schengen visas were issued in India in 2024, many as multiple-entry visas.
3. Both partners seek balanced migration policies reducing illegal flows while supporting talent mobility aligned with India’s development priorities and the EU’s labour needs.
4. Education ties will deepen through initiatives like the Union of Skills and Erasmus, expanding student, academic, and researcher exchanges.
5. Plans include mutual recognition of qualifications, joint degree programmes, satellite campuses, and language training in India to make European education more attractive.

Challenges in India–EU Relations

1. Structural and Institutional Differences: The EU relies on the transatlantic security umbrella, whereas India follows strategic autonomy without external guarantees.
2. Divergent Strategic and Political Approaches: India and the EU have different global aspirations and policy preferences, particularly regarding democracy promotion, human rights, and interventionist policies. Europe’s proactive engagement with China and its critical stance on India’s human rights issues create mutual mistrust.
3. Trade and Investment Barriers: Nearly two decades of inconclusive FTA negotiations have delayed greater market access. India faces non-tariff barriers in the EU and EU criticises India’s high price barriers and lack of transparency, which hinder a predictable trade framework.
4. Technology and R&D Collaboration Gaps: The EU’s aging population and lagging R&D contrast with India’s underutilized scientific and skilled workforce. Also, limited scholarships, rigid visa rules, and weak industry–academia links hinder high-tech cooperation.
5. Energy and Climate Challenges: India’s development priorities make EU-level climate standards harder to adopt quickly. Also, financing and technology transfer gaps slow India’s energy transition.
6. Security and Defence Limitations: The EU has limited hard-power capability and no unified military posture, constraining its ability to provide security deliverables to India. Defence cooperation remains underdeveloped compared to India’s partnerships with the U.S., Japan, or the Quad.
7. Balancing Standards and Realism: The EU’s emphasis on norms and standards sometimes clashes with India’s strategic autonomy and developmental priorities.

Way Forward

1. Conclude ongoing negotiations on the FTA, IPA, and Geographical Indications to unlock trade and investment potential.
2. Scale up connectivity projects like IMEC and Green Shipping Corridors to ensure sustainable infrastructure links.
3. Enhance cooperation on emerging tech through regulatory harmonization, joint research, and responsible AI frameworks.
4. Institutionalize defence and security ties by operationalizing the Security of Information Agreement and the Defence Industry Forum.
5. Deepen talent mobility with simplified visa processes, joint education programs, and recognition of qualifications.
6. Promote trilateral and multilateral cooperation by linking EU, Africa, Middle East, and India in energy, digital, and maritime corridors.

Conclusion: The India–EU Strategic Agenda offers a roadmap to transform shared values into concrete outcomes across trade, technology, security, and people-to-people ties. By overcoming structural differences and deepening cooperation through practical steps, both partners can build a resilient, future-ready partnership.

Question: How can the new India–EU Strategic Agenda strengthen cooperation between the two partners, and what challenges must be overcome to make it successful?