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Amid Trump’s tariffs, China’s rise, and a series of unfolding global crises, the India–EU partnership offers a promising and stabilising roadmap for a fragmented global order.
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The global development narrative has visibly shifted, with the world order rapidly throwing curveballs. Trump 2.0’s increasing tariffs and decreasing aid marked the beginning of 2025, resulting in a domino effect on geopolitics and geoeconomics. New narratives are emerging, where advanced nations, such as those in the European Union (EU), Central and Eastern Europe (CEE), and Australia and Japan, are perceptibly looking towards poles of stability and sustainability. The Ukraine crisis, coupled with the ongoing conflicts in Gaza and the wider Middle East, as well as sudden surges in terrorism across parts of Africa and Asia—including the recent India-Pakistan spat following the Pahalgam terror attack—has indeed rendered global systems vulnerable and weak.
India and the EU have not been left untouched. Positioned at different stages of development and possessing differing worldviews, there is nevertheless a visible desire to amplify and strengthen the strategic partnership shared by New Delhi and Brussels. The visit of the European Union College of Commissioners, led by Ursula von der Leyen, to India was not only the first by the new Commission outside the EU, but also the first such visit in the history of India-EU bilateral relations—marking a significant start to its new mandate. Over two decades after signing the India-EU Strategic Partnership in 2004, the EU launched its India Strategy in 2018. Nonetheless, immense scope remains to enhance strategic influence and maximise synergies between the two actors in several sectors.
Progress towards the global sustainability agenda has been rather fragmented. It has become imperative for the international community to chart a post-2030 roadmap cataloguing issues related to—sustainable financing, enhancing quality and long-term connectivity, bolstering trade and reducing economic barriers, and addressing climate change through both adaptation and mitigation.
Both the EU and India have been quite vocal in their approach towards sustainable development and the protection of ecology and the environment.
Both the EU and India have been quite vocal in their approach towards sustainable development and the protection of ecology and the environment. For instance, during its G20 Presidency, India emerged as a staunch advocate of LiFE (Lifestyle for the Environment), urging countries in the Global North to be mindful of production and consumption, thereby advancing the goal of a circular economy. On the other hand, while the EU has long been considered an ambitious climate leader, its practical uptake has been minimal. In this sense, India and the EU can further concretise their commitment towards energy transition by bridging financing gaps in technology transfers and broadening the discourse on the climate financing agenda. For instance, Brussels is backing the Indian government’s ‘Green Steel Mission’ through joint research and innovation to decarbonise India’s steel sector. India should also tap into the EU’s green innovations in clean energy and climate-resilient technologies to achieve its sustainability targets.
India’s position in the Global South is unique owing to two key factors—it is an emerging economic powerhouse and a rising diplomatic hustler.
As the Bandung Conference marks its 70th anniversary in 2025, its core principles—human rights, territorial integrity, promotion of mutual interests and cooperation, conflict resolution, and peace— hold remarkable relevance in contemporary times. Through its 2023 G20 Presidency and longstanding BRICS membership, India has emerged as one of the leading voices from the Global South. New Delhi’s effort towards integrating the African Union (AU) as a full member of the G20 underscores this significant development. While South-South Cooperation (SSC) is not a new phenomenon, it has acquired renewed interest amid growing strategic competition and the widening cleavage between the West and the Global South. India’s position in the Global South is unique owing to two key factors—it is an emerging economic powerhouse and a rising diplomatic hustler. Indeed, New Delhi’s prominence has become evident in recent years. For instance, despite Trump’s isolationism reshaping the world order, India has maintained balanced relations with the United States (US) and Russia. While India’s position on the Ukraine crisis constitutes peace, dialogue and diplomacy, its approach is also driven by pragmatic geopolitical interests. Its pursuit of multi-alignment—or what may also be termed multi-vector diplomacy—is key. This approach represents a lucrative opportunity for the EU to work with India. Both New Delhi and Brussels are keen to contribute towards a multilateral global order and diversify their engagement to forge stronger, more resilient partnerships.
Although the recent trade deal between the USA and China, signed in Geneva, may temporarily offset tensions, international markets are still cautious. Furthermore, the gutting of USAID casts a grave shadow on the global sustainability agenda. Trump’s recent remarks about acting as a peace broker and negotiating a ceasefire between India and Pakistan have not been well received by New Delhi.
At the same time, the EU finds itself in a precarious position as it seeks to chart a course amidst intensifying great power rivalries. The “China challenge” is a shared concern for both India and the EU. The threat is tangible—the EU now openly views China as a systemic rival. The shift in stance from ‘decoupling’ to ‘derisking’ underscores Brussels’s attempt to navigate a middle ground and maintain a competitive relationship with Beijing.
Trump’s trade wars raise a crucial question: Should the EU deepen its ties with China or seek alternatives within the Global South, such as India?
Trump’s trade wars raise a crucial question: Should the EU deepen its ties with China or seek alternatives within the Global South, such as India? Considering the systemic challenges China poses, working together with New Delhi appears to be a more practical option for Brussels. Experts posit that Beijing’s overcapacity in manufacturing could result in the dumping of cheap goods in European markets as a countermeasure to Trump’s exorbitant tariffs. Moreover, China’s growing heft in artificially manufacturing cheap products across industries—such as critical minerals, semiconductors, solar panels, humanoid robots, and automobiles—threatens both Europe and the US.
In this context, the EU should partner with India to bolster its competitiveness in emerging and critical technologies, thereby helping maintain the equilibrium of the global order. Renewing and redefining such partnerships is imperative given the contemporary geopolitical landscape. India and the EU should strategise a long-term, politically beneficial, economically feasible, and development-oriented roadmap for the common global good.
Swati Prabhu is an Associate Fellow at the Centre for New Economic Diplomacy, Observer Research Foundation.
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Dr Swati Prabhu is a Fellow with the Centre for New Economic Diplomacy at Observer Research Foundation. Her research explores the idea of aid, role of ...
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