India and the European Union (EU) on Friday decided to work on a major security and defence partnership, and explored ways to promote a free and open Indo-Pacific based on global law and respect for sovereignty amid China’s military muscle flexing in the region.
India, EU Eyeing Defence and Security Partnership
India and the European Union (EU) decided to work on a major security and defence partnership and explored ways to promote a free and open Indo-Pacific based on global law and respect for sovereignty amid China’s military muscle flexing in the region. Von der Leyen added, “This is not only about stability in our respective regions. But it is also a key part in strengthening our economic security and ultimately our prosperity.” “We will work together on triangular development projects for sustainable and inclusive development in the Indo-Pacific region and Africa,” PM Modi said.
The EU side welcomed India’s interest in joining the projects under the EU’s Permanent Structured Cooperation (PESCO) as well as to engage in negotiations for a Security of Information Agreement, the statement noted. Besides the EU, India is in talks with several other nations independently, including the UK, to set up free trade pacts as the world’s fastest growing major economy aims to give a boost to its trade ties. The move also comes as the EU and most nations globally are trying to soften the impact of tariffs imposed by Donald Trump.
This is not the first time that India and the EU aim for a free trade agreement. An attempt was made over a decade ago but talks stalled in 2013. Another attempt was made in 2021 and have been on since – both sides pressing hard for the best outcome for themselves.
THE CHALLENGE
The European Union is already India’s largest trading partner with two-way trade accounting for more than $137 billion in 2023-24. In the last decade alone – since 2014 – India-EU trade has grown by a massive 90 per cent. But each time an attempt has been made to have an India-EU comprehensive agreement, it has met hurdles. From India, New Delhi has not been in favour of lowering tariffs in certain industries, while for the EU, it has not been willing to ease visa restrictions currently in place to curb Indian professionals to work in Europe. While Europe wants tariffs to be cut on the import of cars and bikes as well as whiskeys and wines, India wants Europe to give greater access to Indian pharma firms to supply cost-effective medicines and chemicals across Europe. India also wants Europe to reduce import tariffs on textiles, garments, leather products. New Delhi also rejects a 20-35 per cent carbon tax imposed on industrial goods such as cement, steel, and aluminum.
THE INDIA-EUROPE CORRIDOR
In another significant update, PM Modi confirmed that detailed discussions were held with European leaders on the strategically important India Middle East-Europe Corridor or IMEEC as it is often called.
