India and the EU have been strategic partners for over two decades, since 2004. The EU has also emerged as a top trading (Euro 120-135 bn) and investment partner for India. The relationship and institutional mechanisms, including the Troika dialogue, have continued to reinforce and deepen for mutual benefit.
Even though in several areas, like the Bilateral Trade Agreement, progress has been slow and painful, the current disruption in the Trans-Atlantic alliance engineered by Trumpian unilateralism has created a sense of urgency to close the Trade deal at the earliest. It is expected that during January 2026, the gaps will be addressed, and the FTA could even be signed on January 27 or before, when the India-EU Summit takes place in New Delhi. India has also conferred a distinct honour on the EU leadership by inviting them to be the Chief Guests at the Republic Day celebrations on January 26. European Commission President Ursula von der Leyen and European Council President Antonio Tajani are expected to be the Chief Guests this year.
This gesture on the part of India and the fact that, under the changed global circumstances and volatility, the EU have begun to attach greater importance to one another by cementing and frequenting high-level interactions, despite certain political differences with certain members over the Russia-Ukraine war and India’s continued imports of crude from Russia. However, pragmatism and the fact that India has become the fastest growing major economy, surpassing the UK and Japan in a space of one year, to be the fourth largest one and India’s clear articulation of its national interests, have made them realise the need to dispense with rigid positions for their own interests. Besides, India, the UK, and several others have already signed the FTAs. The EC-FTA with some European countries with investment commitments has also become operational. All these factors, along with the ever-present threat of Trumpian tariffs and disenchantment with US policies, have created reasonable grounds to identify and address any irritants in India-EU trade and economic relations, including the trade agreement.
High-level contacts have been exceptional in recent years. It was for the first time that twenty-two EU Commissioners travelled to India. German Chancellor Metz just concluded a state visit, signing over two dozen agreements. The French President is also expected to visit early this year, as several hundred Rafael fighter aircraft and other equipment are being negotiated and finalised by India and France. Shri Ajit Doval, National Security Adviser to the Prime Minister of India and H.E. Emmanuel Bonne, Diplomatic Adviser to the President of the Republic of France ,co-chaired the 38th India-France Strategic Dialogue in New Delhi on 13 January. During the Strategic Dialogue, India and France reiterated their commitment to the strategic partnership.
Earlier, Minister of External Affairs Dr S Jaishankar started the New Year with the first visit to Europe -France and Luxembourg. Apart from conferring with his counterpart, he also called on French President Macron. In the India-France Year of Innovation, they explored ways to diversify ties across innovation and technology, startups, health, education and mobility, as well as discussed growing cooperation in strategic areas of defence, security, space, civil nuclear, maritime security and the economy. An India -Weimar Foreign Ministers meeting was also held. Dr Jaishankar appreciated his counterpart’s and President Macron’s comments that, on both sides, the Chairs of G7 and BRICS, respectively, during 2026, would aim to work together to find synergies rather than work at cross-purposes. He also said that ‘ our two nations are committed to multi-polarity, I believe that working together is important for ourselves, also for stabilising the global politics at this stage.” Italian PM Meloni has invited PM Modi to visit Italy. The IMEC corridor and multidimensional route have tremendous connectivity and capacity potential Al between India and the Middle East and Europe, which both sides are serious about exploiting despite immediate roadblocks.
The comprehensive trade and investment deal has dragged on for over two decades. But fortunately, the differences on market access, agriculture, automobiles, technical and non-technical barriers to trade, including GIs and the EU’s Carbon Border Adjustment Mechanism, are nearing resolution or being narrowed to mutual satisfaction. The Trade deal will provide smoother access to each other’s markets, especially for the Indian labour-intensive products.
The remit of bilateral engagement has expanded to various other strategic domains, including climate change, counter-terrorism, defence, security, including cyber, AI, Quantum, and new communication technologies (6G), the Indo-Pacific, and human resources, education, skill development, innovation, and renewables. India and the EU established the Trade and Technology Council in 2023 to enhance cooperation in digital governance, semiconductors, clean energy technologies, and resilient supply chains. Migration and Mobility remain a major priority for India. How to immunise the global and value supply chains (GVCs) from the utter dependency on a single country and the arbitrary behaviour of others remains a major area of concern and discord for both sides. India reiterates that the relationship can be reinforced only if there is Mutual Respect, Mutual Interests, and Mutual Sensitivity.
India and the EU have a mature strategic mindset, driven by mutual interests, that can lead to a productive and rewarding strategic partnership, with shared values and a democratic architecture for the 21st century. Both support the rules-based order and multilateral global governance and institutions, which provide a fulcrum for shaping the future.
(Anil Trigunayat is a former Indian Ambassador to Jordan, Libya and Malta and Distinguished Fellow at the prestigious Think Tanks like Vivekananda International Foundation and United Services Institute of India)
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