India-EU Relations

India-EU Relations

The diplomatic ties between India and the European Union (EU) have traversed a complex and multifaceted journey since the early 1960s. A pivotal moment in this trajectory was the 1994 EU-India Cooperation Agreement, setting the stage for a strategic partnership that officially crystallized in 2004. The core of this enduring relationship has been the intricate economic interplay, with the EU emerging as India’s primary trading partner.

Trade Negotiations and Hurdles:

The saga of negotiations for a comprehensive trade agreement, known as the Broad-based Free-Trade Agreement or Trade and Investment Agreement (BTIA), began in 2007. This ambitious endeavor aimed to cover the spectrum of goods, services, and investments. However, negotiations hit an impasse in 2013, primarily due to contentious issues such as tariff reductions on automobiles, wines and spirits, and the free movement of professionals.

Investment Facilitation Mechanism (IFM):

In response to the challenges faced by European companies investing in India, the 13th India-EU summit in 2017 witnessed the establishment of the Investment Facilitation Mechanism. This mechanism sought to address barriers, create a transparent trade and investment environment, and stimulate EU investments in India. It represented a concerted effort to foster cooperation amidst the intricacies of the global economic landscape.

Strategic Partnership Roadmap:

The 2020 summit marked a watershed moment with the adoption of the EU-India Strategic Partnership: A Roadmap to 2025. Against the backdrop of the COVID-19 pandemic, leaders committed to deepening their trade and investment relations, positioning the partnership as a crucial element in post-pandemic economic recovery. The civil nuclear cooperation agreement underscored a commitment to advancing research and development for the peaceful use of nuclear energy.

16th India-EU Leaders’ Summit:

The 16th India-EU leaders’ summit held in Porto, Portugal, in May 2021, showcased a renewed commitment to shared values, including democracy, freedom, rule of law, and human rights. In-depth discussions covered an array of global challenges, encompassing the COVID-19 pandemic, climate change, and intricate trade and investment issues. The joint statement articulated a collective resolve to forge new synergies for a safer, greener, cleaner, more digital, resilient, and stable world.

Resumption of Trade Talks:

A breakthrough occurred in the form of the resumption of trade negotiations after an eight-year hiatus. India and the EU demonstrated a renewed commitment to crafting a balanced, ambitious, and comprehensive trade agreement. Simultaneously, negotiations for a stand-alone investment protection pact and agreements on geographical indicators were initiated, signaling a pragmatic approach to address previous stumbling blocks.

Latest Developments in India-EU Relations:

Clean Energy and Climate Partnership (December 2021):

In December 2021, India and the EU jointly agreed on a comprehensive work program until 2023 to implement the 2016 EU-India Clean Energy and Climate Partnership. The EU-India Energy Panel emphasized increased technical cooperation in various areas, including energy efficiency, renewable energy (such as floating solar, thermal solar, and offshore wind), cooperation within the International Solar Alliance, green hydrogen, grid integration, and sustainable financing. This collaborative effort reflects a shared commitment to addressing climate change and fostering sustainable energy solutions.

Offshore Wind Business and Investment Summit:

As part of their strengthened cooperation, the EU and India have committed to organizing an India-EU offshore wind business and investment summit in the first half of the next year. This initiative aims to further explore opportunities and collaborations in the offshore wind sector, contributing to the growth of renewable energy and sustainable practices.

High-Level Discussions on Trade Pact (April 2022):

In April 2022, Finance Minister Nirmala Sitharaman engaged in high-level discussions with an EU delegation led by Member of the European Parliament (MEP) Bernd Lange. The discussions encompassed mutual interests, with a focus on the India-EU trade pact. Recognizing both entities as two of the largest open market economies and proponents of pluralistic societies, there was an expressed commitment to working towards a partnership that promotes an international rule-based order in the post-pandemic period.

Trade and Investment Agreements (April 2022):

Both India and the EU are actively working towards concluding negotiations on comprehensive trade and investment agreements before the electoral cycles commence on both sides in 2024. This demonstrates a sense of urgency and mutual commitment to strengthening economic ties. The European Investment Bank (EIB), the lending arm of the EU, also expressed its intention to double annual investments in India, reaching approximately €500 million in the next two years.

These recent developments underscore the resilience and dynamism of the India-EU relationship. Collaborative efforts in the fields of clean energy, trade, and investment demonstrate a shared vision for a sustainable, prosperous, and rules-based partnership. As both entities navigate the complexities of a rapidly changing global landscape, their commitment to mutual cooperation remains a cornerstone for future collaboration.


The intricacies of India-EU relations continue to unfold against the backdrop of a rapidly evolving global landscape. Recent agreements and the revival of trade talks underscore a shared determination to navigate challenges, capitalize on opportunities, and foster a resilient and collaborative partnership. As the world undergoes transformation, the India-EU relationship remains poised to adapt and thrive in the face of complexities, forging a path towards mutual prosperity and shared progress.

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