This article is part of our special report EU-India relations 2024: what lies ahead?.
India is seeking more engagement with the European Union just as the EU increases its presence in the Indo-Pacific. But India’s pursuit of harmony sits against a complex background involving China and Russia.
Euractiv’s Xhoi Zajmi sat down with His Excellency Mr Saurabh Kumar, Ambassador of India to Belgium, Luxembourg and the EU, to discuss the wins and the challenges facing this revived partnership.
XZ: 2024 marks the 20th anniversary of the strategic partnership between India and the EU. What would you highlight as the most important achievement(s) in this partnership, as well as domains where more can be done?
SK: India was one of the first countries to establish relations, way back in 1962 with the then European Economic Community. This relationship has grown and deepened since then. In 1994, a Cooperation Agreement was signed which, inter-alia, provided for regular political dialogue. During the fifth India-EU Summit in The Hague in 2004, the relationship was upgraded to a strategic partnership.
As India has grown – it is today the world’s fifth largest economy and expected to become the third largest – India-EU mutual interests, commitments to democracy, rule of law, and a rules-based international order, have deepened our ties.
Our cooperation today spreads across a wide spectrum, from political and security to trade and economy; from green and digital transitions to critical minerals and emerging technologies; from space to nuclear; from health to agriculture; from education to culture; and a lot more.
Thus, I would rate depth and resilience as important achievements, but also broadening of the relationship from a predominantly economic one to a more holistic one.
Of course, we look forward to engaging with the EU across the entire spectrum, as it, itself, evolves. Today, both sides approach relations taking into account the geopolitical realities and our long-term interests.
XZ: On Europe Day, Indian Foreign Minister S. Jaishankar depicted India-EU relations as stronger than ever, saying India and EU are “natural partners in a multipolar world”. What does that natural partnership entail?
SK: External Affairs Minister Dr Jaishankar’s participation in the Europe Day celebrations in New Delhi was indicative of the importance we attach to this relationship. His statement that India and EU are natural partners in a multipolar world, is reflective of how we place the relationship in the global context.
My own sense is that the EU [also] realises the importance of the relationship, though this tends to get masked by the immediacy of other challenges.
Natural partnership entails mutuality of interest and geo-political convergence. The last India-EU Summit laid out an ambitious roadmap for our strategic partnership; the next one, which would be held next year, would build up comprehensively on this.
There is a lot to do. For example, in recent years we have witnessed the vulnerabilities of global supply chains. There is a need for more resilient supply chains which are not geographically concentrated, and India can be an important partner in this.
Challenges such as terrorism, climate change, energy transition, trusted partnerships in technology, migration, reformed multilateralism, and others require our joint effort and cooperation. Also, as Europe ups its involvement in the Indo-Pacific, it would bring us closer together as partners.
XZ: How do you justify this natural partnership in the context of India’s continued close relations with Russia and Prime Minister Modi’s recent visit to the country?
SK: Our natural partnership with the EU is not exclusionist. We have a historical relationship with Russia (former Soviet Union). Foreign Policies are pursued keeping national interests in mind and India does the same.
We have been categorical that this is not an era of war and that the conflict needs to be resolved through dialogue and diplomacy. We have kept channels of communication open with Ukraine and there have been meetings at the leadership level with President [Volodymyr] Zelenskyy. Foreign Minister [Dmytro] Kuleba was in New Delhi, not too long ago.
There are geo-political interests in our engagement with Russia. I have interacted with many in Brussels who see India’s point of view.
XZ: What about India’s relations with China?
SK: Our relations with China are complex. The Galwan incident on the India-China border in mid-2020 was a serious setback to our relationship.
Our channels of communication both at the diplomatic and military level are open and it cannot be business as usual unless issues emanating from Chinese actions in our border areas are resolved.
XZ: Going back to the EU and India. The European Parliament admits that bilateral relations have yet to reach their potential. Rapprochement has mainly focused on reaching a Free Trade Agreement (FTA).
Do you see talks picking up since elections on both sides are now over? How can we reach the full potential of India-EU dynamics?
SK: What is important is to progress the relationship over time. As I mentioned, we have done well by this yardstick, but there is more to do. This is the understanding at the highest political leadership levels.
The year saw elections in both India and Europe, and the EU’s transition cycle is underway. We look forward to the engagement picking up as soon as the transition is completed; in fact, work for the next Summit at the working level is already underway.
Our other engagements have also continued, such as FTA negotiations, dialogues in domains such as defence and security, maritime, disarmament, etc. and high-level meetings on side-lines on international events. But yes, we are looking forward to things speeding up and are preparing for the same.
XZ: What exactly would the FTA mean for India? Despite a lack of it, trade between sides has continued and last year the EU overtook the US and became India’s largest trading partner.
How will the FTA benefit India and how do you see the two sides converging?
SK: We have had eight rounds of FTA negotiations since 2022, and the ninth one is scheduled for September. FTA negotiations in general are not easy, and India-EU negotiations have been no different. The important point is that there is strong political commitment on both sides to conclude a comprehensive and balanced FTA.
India-EU trade is indeed growing robustly and was around €135 billion in the 2023-24 financial year.
But FTA is not just about expanding trade, which is important, but also about economic security and supply chain resilience; it is about growth, but also de-risking from economic dependencies and strategic vulnerabilities; it is about trusted partners for trade, investment and technology collaborations.
In short, FTA has a strategic and political dimension. Both India and the EU realise this and are committed to work towards its conclusion.
I may also add that India is the world’s fastest-growing major economy with a sustained growth projection over coming decades. It has a 522 million working population with a median age of 29 years.
India’s GDP growth rate in 2023-24 was 8.2%. By 2047, it is expected to grow into a $32 trillion economy. It is also one of the fast-growing markets which offers its partners sustained growth in both the short and long run. Thus, there is strong mutuality of interest.
XZ: The second round of the EU-India Trade and Technology Council (TTC) is also due. Following the first meeting in May last year, what outcomes do you expect from this upcoming meeting?
SK: India-EU TTC is an important mechanism of our partnership. The EU has this partnership only with the US and India. Under this framework, we are engaging in three Working Groups related to i) strategic technologies, digital governance and digital connectivity; ii) green and clean energy technologies; and iii) resilient value chains, trade and investment.
Within these streams, we are working in areas such as quantum and high-performance computing, Artificial Intelligence, semiconductors, digital skills and digital public infrastructure; battery technologies, marine plastic litter, waste to hydrogen; and resilient value chains, market access and FDI screening and multilateral trade issues. An MOU on Semiconductors was signed in November 2023.
XZ: There has been a new European Parliament since the June elections, and a new College of Commissioners being put in place soon too. How do you see interaction with India continuing after these changes?
SK: Let me congratulate the EU on its successful elections and the parliamentary support for President of the Commission.
We are waiting for the EU transition cycle to be completed. In the meantime, we will be holding our bilateral dialogues such as foreign policy and security consultations, strategic partnership review meetings, and in areas such as energy, climate and environment.
The next meeting of the TTC is also due and FTA rounds are ongoing. All this would lead up to the next Summit.
[By Xhoi Zajmi I Edited by Brian Maguire | Euractiv's Advocacy Lab ]