The European Union has unveiled a new EU–India Strategic Agenda, with fresh momentum in trade talks, defence cooperation, and political engagement, underscoring Brussels and Delhi’s intent to forge a defining partnership for the 21st century.
Recent weeks have witnessed a flurry of activity on the European Union (EU)-India front.
As the EU and India navigate a turbulent world, the bloc, on September 17, unveiled its ‘New Strategic EU-India Agenda’. The foundation for this was laid during the landmark visit to India earlier this year by the EU College of Commissioners.
The new Strategic Agenda focuses on five pillars, including i) Prosperity and Sustainability, which encompasses trade, investment, supply chains, and sustainability; ii) Technology and Innovation, including critical and emerging technologies, digital infrastructure, and research cooperation; iii) Security and Defence, including new agreements, regional security, and countering traditional and hybrid threats; iv) Connectivity and Global Issues, such as cooperation in third countries and global governance; and finally, v) Enablers Across Pillars, which includes expanding skills mobility, promoting mutual understanding and research, involving business communities, and reinforcing the institutional architecture of EU-India relations.
Against the backdrop of Trump’s pressures on the EU to impose 100 percent tariffs on India due to its oil purchases from Russia, Brussels has chosen to double down on its partnership with New Delhi.
On September 12, EU Commissioner for Trade Maroš Šefčovič arrived in New Delhi to advance talks on the EU-India Free Trade Agreement (FTA), touted as the largest agreement of its kind globally.
Geopolitical and economic volatilities, not least US President Donald Trump’s tariff wars, have lent greater urgency and accelerated the negotiations, which resumed in 2022 after a hiatus of almost a decade. Through a substantial reduction of tariff and non-tariff barriers, the FTA is expected to unlock major trade and investment flows. EU-India bilateral trade was valued at €180 billion in 2024, even while India accounted for only 2.4 percent of the EU’s total trade.
Against the backdrop of Trump’s pressures on the EU to impose 100 percent tariffs on India due to its oil purchases from Russia (after Washington first imposed tariffs of 50 percent, impacting half of India’s €74.7 billion worth of annual exports to the US), Brussels has chosen to double down on its partnership with New Delhi. Yet, key contentions persist. Šefčovič was accompanied by the EU’s Agriculture Commissioner, Christophe Hansen, to iron out issues on agriculture and dairy, as well as non-tariff barriers affecting those sectors. According to media reports, the progress made in these areas was insufficient. Moreover, the EU’s Carbon Border Adjustment Mechanism (CBAM) and greater market access in key sectors such as automobiles and alcohol continue to pose challenges.
With the 14th round of negotiations scheduled for October in Brussels, a greater willingness to make concessions in the interest of the wider geo-economic picture is necessary to seal the EU-India FTA. India’s flexibility on the UK-India FTA, where the final agreement watered down Indian demands on migration, offers a template.
While the most immediate imperative is to conclude the FTA, the new agenda highlights an EU-India Security and Defence partnership that would enable closer cooperation on shared priorities, including maritime security, hybrid threats, and counterterrorism.
In parallel to the trade negotiators, the Political and Security Committee (PSC), comprising the Chair and 27 Ambassadors of the EU member states to Brussels, paid their maiden visit to India to strengthen relations. Simultaneously, the EU-India Counter-Terrorism Dialogue took place in Brussels. In October, the European Parliament’s Committee on International Trade is likely to visit New Delhi, followed by EU foreign policy chief Kaja Kallas. The extent and magnitude of EU-India political and diplomatic engagement demonstrate Brussels and New Delhi’s seriousness about strengthening ties. Both the EU and India have been at the receiving end of Trump’s trade threats and shocks, and are seeking a deeper partnership to manage disruptions unleashed by their traditional ally, alongside other geopolitical pressures.
While the most immediate imperative is to conclude the FTA, the new agenda highlights an EU-India Security and Defence partnership that would enable closer cooperation on shared priorities, including maritime security, hybrid threats, and counterterrorism. The Pahalgam attack of April 2025 finds explicit mention in the agenda document. The Joint Communication also announced negotiations on a Security of Information Agreement to facilitate the exchange of classified information, which would also unlock India’s participation in frameworks such as the EU’s Permanent Structured Cooperation (PESCO). Highlighting the links between the Indo-Pacific and Euro-Atlantic theatres, the agenda notes the EU’s participation in the Indo-Pacific Oceans Initiative (IPOI) and the Indian Ocean Rim Association (IORA).
Strengthening cooperation between defence industries is also emphasised. Despite the impetus to “buy European,” Brussels will need external partners, especially in the short term, and India’s manufacturing capacities can play a role in Europe’s rearmament effort. Meanwhile, India is seen as a key market for European defence exporters, given the country’s efforts to diversify military supplies and modernise its defence capabilities.
The EU and India have managed their differences over Russia well, which have not deterred the development of a closer EU-India partnership. Both sides will need to ensure that the Russia factor does not become a future impediment to closer cooperation. As the new agenda reiterates, “While the EU and India may not align on every issue, this partnership is underpinned by converging interests, complementary strengths, and shared political will, and can deliver real impact for people in both regions and beyond.” Yet, as Kallas alluded, India’s oil purchases from Russia, as well as its participation in the recent Zapad military exercises with Russia in Belarus, are irritants for the EU. While the agenda mentions engagement with India on “Russia’s war against Ukraine, shadow fleets, and sanctions,” the EU’s current approach entails deepening ties with India to “not really push them into Russia’s corner”.
Fostering reliability and resilience while balancing alignment and autonomy, the EU-India partnership may well be among the defining partnerships of the 21st century.
Notably, the agenda urges broadened EU engagement with "India’s 28 states and eight union territories”. This may fit in well with India’s heightened paradiplomacy under Prime Minister Narendra Modi’s leadership, granting a greater role to states as drivers of India’s growth.
The new EU-India agenda will need ratification by all 27 EU member states, after which it will be formally adopted at the EU-India Summit in 2026. Fostering reliability and resilience while balancing alignment and autonomy, the EU-India partnership may well be among the defining partnerships of the 21st century.
Shairee Malhotra is Deputy Director - Strategic Studies Programme at the Observer Research Foundation.
The views expressed above belong to the author(s). ORF research and analyses now available on Telegram! Click here to access our curated content — blogs, longforms and interviews.
Shairee Malhotra is Deputy Director - Strategic Studies Programme at the Observer Research Foundation. Her areas of work include Indian foreign policy with a focus on ...
Read More +
PREV