India, EU to Ink New Pact on Defence and Security

Syllabus: GS2/IR

Context

• As per a EU’s senior diplomat, India and the European Union have agreed to sign a new Security and Defence Partnership covering maritime security, cybersecurity and counterterrorism.

About

• The partnership will be signed during the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa to India as chief guests at Republic Day celebrations.
• The leaders will co-chair the 16th India-EU Summit with Prime Minister Narendra Modi. 
• The two sides also plan to conclude a MoU on a comprehensive mobility framework, to facilitate the movement of students, seasonal workers, researchers and highly skilled professionals, and promote research and innovation.
• The visit is centred around the signing of a Free Trade Agreement (FTA), which is still being finalised.

India-EU Relations 

• Political cooperation: India-EU relations date to the early 1960s, and a cooperation agreement signed in 1994 took the bilateral relationship beyond trade and economic cooperation.
  • The first India-EU Summit, in 2000, marked a landmark in the evolution of the relationship. 
  • At the 5th India-EU Summit at The Hague in 2004, the relationship was upgraded to a ‘Strategic Partnership’. 
• Economic cooperation: India’s bilateral trade in goods with the EU was USD 137.41 billion in 2023-24, making it the largest trading partner of India for goods.
  • EU is India’s largest trading partner for goods, 17% of India’s exports go to the EU and 9% of EU exports come to India.
• India-EU Free Trade Agreement (FTA) Negotiations: Its objective is to finalize a comprehensive trade agreement covering goods, services, investments, and geographical indications.
  • The EU and India are working to announce a ‘Free Trade’ Agreement (FTA) during the visit of E.U. leaders Republic Day later this month. 
• Other areas of cooperation:
  • The India-EU Water Partnership (IEWP), established in 2016, aims to enhance technological, scientific, and policy frameworks in water management.
  • In 2020, there was an agreement for research and development cooperation in the peaceful uses of nuclear energy between the European Atomic Energy Community and the Government of India.
  • India and the EU established the Trade and Technology Council (TTC) in 2023. The TTC is a forum for the two parties to collaborate on trade, technology, and security. The TTC’s goals.
• India’s Two Levels of Engagement
  • EU as a bloc: Regular summits, strategic dialogues on trade, tech, security, foreign policy.
  • Bilateral with major EU members: Deepening ties with France, Germany, Nordic and Eastern European countries.

Factors Shaping India-Europe Relations:

• Geopolitical Shifts and Strategic Autonomy: Return of war in Europe (Russia–Ukraine) and the global erosion of multilateralism.
  • Europe is seeking greater strategic autonomy from the US especially post-Trump era.
  • India aims to maintain a multipolar world order while diversifying its partnerships beyond the US, Russia, and China.
• US Uncertainty: The Trump administration’s unpredictability regarding European security commitments has forced Europe to seek alternative partnerships and alliances. India, as a stable democracy with proven reliability, becomes strategically valuable.
• Influence on Global Trade Norms: Together, India and the EU account for nearly two billion people and over a quarter of global GDP, an economic mass capable of influencing global trade norms if aligned.
• Trade and Economic Cooperation: EU is one of India’s largest trade and investment partners.
  • India and EU are keen on concluding India–EU Free Trade Agreement (FTA) and Investment Agreement.
  • IMEC (India–Middle East–Europe Corridor) provides opportunities for strategic connectivity and trade.
• Technology and Digital Sovereignty: Both have the shared interest in promoting digital technologies as public goods.
  • India can benefit from Europe’s strengths in deep tech, semiconductors, and digital manufacturing.
• Defence and Strategic Cooperation: Europe is a key arms supplier to India.
  • India seeks joint development, co-production, and technology transfer.
  • Europe is rearming due to the Ukraine war; India is pursuing Atmanirbharta (self-reliance).
• Indo-Pacific and Maritime Strategy: Europe increasingly views the Indo-Pacific as a strategic priority.
  • India is working with France, Germany, and others to promote free and open Indo-Pacific.

Challenges in the India – EU Relations

• India’s Stand on Ukraine War: Europe expects India to be more critical of Russia; India maintains strategic neutrality.
• EU’s Stand on Pakistan and Terrorism: India expects the EU to hold Pakistan accountable for state-sponsored terrorism.
• Slow Progress on Trade Agreements: The India–EU Free Trade Agreement (FTA) negotiations have faced multiple deadlocks.
• Carbon Border Adjustment Mechanism (CBAM) imposed by the EU creates additional trade barriers for India.
• Human Rights and Normative Pressure: EU often adopts a prescriptive stance on India’s internal matters.
  • India views this as interference in domestic affairs, causing diplomatic friction.
• Regulatory and Standards Barriers: EU’s strict regulations on data privacy, digital taxation, environmental standards, and labour laws are hurdles for Indian exporters and tech firms.
• Media stereotypes and limited public awareness in Europe with respect to India hinder people-to-people ties.

Way Ahead

• Fast-Track Trade and Investment Agreements: EU and India must conclude the long-pending India–EU Free Trade Agreement and Investment Protection Agreement.
• Deepen Strategic and Defence Cooperation: Move beyond buyer-seller relationship to joint development and co-production of defence technologies.
• Expand Mobility and Education Partnerships: Finalise a comprehensive mobility agreement for skilled professionals, students, and researchers.
• Build Resilient Supply Chains: Diversify away from China by promoting trusted, transparent supply chains.
  • Leverage initiatives like IMEC (India-Middle East-Europe Corridor) for logistics, energy, and trade.
• Enhance People-to-People and Cultural Ties: Promote tourism, media engagement, and cultural exchanges to break stereotypes and deepen mutual understanding.

Conclusion

• The EAM’s first official visit of 2026 to Europe signals that India has made a conscious strategic choice to elevate Europe from a secondary economic and political relationship to a centerpiece of its foreign policy. 
• The FTA conclusion would create a trade corridor with deepened defense, technology, and supply chain integration. 
• The EU and India are moving closer together at a time when the rules-based international order is under unprecedented pressure through wars, coercion, and economic fragmentation.

Source: TH