European Council Approves 'New Strategic EU-India Agenda', Focusing on Partnership, FTA & Sustainability

The European Council approved conclusions on a ‘New Strategic EU-India Agenda’ announced earlier by the European Commission on October 20, welcoming the “strong impetus” it provides to relations between the European Union and India.

The Belgium-based council, responsible for the general political direction and priorities of the 27-member economic bloc, highlighted efforts on both sides to conclude an India-EU free trade agreement (FTA) by the end of the year.

Its conclusions this week endorse the Joint Communication on the new agenda and its objective of deepening EU-India ties, including prosperity and sustainability, technology and innovation, security and defence, and connectivity and global issues.

“The council welcomes in particular efforts to conclude a balanced, ambitious, mutually beneficial and economically meaningful free trade agreement, which the European Commission and the Indian government aim to finalise by the end of the year,” the council said in a statement.

“Such agreement must include enhanced market access, removal of trade barriers, and provisions on sustainable development,” it said.

The European Council noted that closer collaboration between the EU and India on security and defence matters based on the principles of mutual trust and respect were of particular importance against the backdrop of an increasingly complex geopolitical outlook.

“The council takes note of the intention to pursue work towards the establishment of a security and defence partnership, which could also facilitate defence industrial cooperation when appropriate,” it stated.

It said the EU will continue to engage with India on all aspects of “Russia’s war of aggression against the Ukraine”. It also emphasised the joint capacity and responsibility of the EU and India to safeguard multilateralism and the rules-based international order with the UN Charter at its core, as well as the multilateral trading system, in particular the World Trade Organisation (WTO).

“The promotion and protection of democratic values and norms, international law and human rights, including the rights of women and children, is an intrinsic part of the EU-India strategic agenda,” it added.

The council called on the European Commission to take forward the articulation and implementation of this ‘New Strategic EU-India Agenda’ on the basis of the priorities set out in the Joint Communication last month.

It followed the visit of the EU College of Commissioners to India in February this year, which laid the foundation for a “new chapter in EU-India relations”.

During this landmark visit – the first of its kind to the Indo-Pacific – both sides committed to raising the Strategic Partnership to a higher level to boost shared prosperity, strengthen security, and tackle major global challenges together, the Joint Communication read.

Digital Transformation & Green Energy

According to the official EU website, the EU is India’s second-largest trading partner, accounting for trade in goods worth €120 billion in 2024, or 11.5% of India's total trade. Meanwhile, India is the EU’s 9th largest trading partner, accounting for 2.4% of the EU’s total trade in goods in 2024, well behind the USA (17.3%), China (14.6%) or the UK (10.1%). Trade in goods between the EU and India has increased by almost 90% in the last decade.

In addition to trade and security, the EU and India are also expanding collaboration in emerging areas like digital transformation and green energy. According to a 2023 report by the European Commission, India is set to become the third-largest global digital economy by 2025, offering vast opportunities for technological innovation and cross-border partnerships.

Both parties prioritise developing clean technologies and addressing climate change.  The partnership will support sustainable development goals and innovation in renewable energy, both of which are critical to the global transition to a low-carbon economy, according to the European Commission.

 (With inputs from PTI.)