The EU-India partnership is gaining momentum as both sides align interests in a fragmented world. During a landmark visit to New Delhi, the EU and India announced plans for a free trade agreement and a defense partnership, reflecting mutual recognition of each other's strategic importance. Europe sees India as vital for economic resilience and geopolitical stability, while India values the EU as a key partner in its multi-alignment strategy. Both regions aim to enhance trade, defense, and connectivity for long-term collaboration.
Manoj Motwani
Last week, the President of the European Commission, Ursula von der Leyen, and her fellow commissioners arrived in India for a landmark visit aimed at re-energizing the EU-India partnership. The bonhomie on display in New Delhi stood out as a stark contrast to the transatlantic tensions unfolding simultaneously in Washington. This meeting marked a critical moment for both regions, as they seek to align their interests in an increasingly fragmented world order.
President of the European Commission, Ursula von der Leyen and Indian Prime Minister Narendra Modi announced ambitious plans to deepen ties between Europe and India.
Among the key promises was a commitment to finalize a free trade agreement by the end of the year—an agreement that, if concluded, would be the largest of its kind globally. Additionally, the EU announced its intention to create a "defense and security partnership" with India, modeled after agreements it has signed with Japan and South Korea. These moves underscore the EU’s recognition of India as a vital partner in addressing global challenges, from economic resilience to geopolitical stability.
Shifting Geopolitical Realities
The current warmth in EU-India relations represents a significant shift from three years ago when India faced European criticism for its muted response to Russia’s invasion of Ukraine. However, it is not India that has changed its position; rather, Europe’s strategic recalibration has brought New Delhi into focus. European leaders increasingly recognize that their pursuit of "strategic autonomy" requires building stronger ties with countries like India, Japan, and South American nations.
As the EU grapples with the realization that neither the United States nor China can be easily replaced as security or economic partners, its leaders have turned to New Delhi to diversify their options. India, with its growing industrial base and geopolitical clout, offers Europe a unique opportunity to strengthen its trade and security frameworks.
Economic and Defense Collaboration
India’s industrial potential is of particular interest to Europe. Despite being the ninth-largest trading partner for the EU, India’s manufacturing capabilities—especially in defense—are seen as an asset. For example, Bharat Forge Ltd., an Indian company, recently exported over 100 155-mm artillery systems and has demonstrated its ability to scale up production quickly. This aligns with Europe’s need to ramp up defense manufacturing, particularly as it increases defense spending to address new security challenges.
During the visit, President of the European Commission, Ursula von der Leyen highlighted India’s interest in joining defense industrial projects under the EU's Permanent Structured Cooperation program. While India’s domestic defense production is not yet on par with South Korea’s, Europe’s ballooning defense budgets could provide the necessary impetus for Indian companies to expand capacity and contribute to shared security goals.
A Broader Vision for Connectivity
Beyond defense and trade, the EU and India are looking to deepen connectivity and global partnerships. The India-Middle East-Europe Economic Corridor, launched during India’s G20 presidency, is a prime example of this vision. Described as a "modern golden road," the corridor promises faster trade routes, clean hydrogen pipelines, and high-speed data cables, linking India, the Arabian Gulf, and Europe. This ambitious project reflects the EU’s readiness to invest in infrastructure that enhances connectivity and fosters sustainable growth.
A Pragmatic Partnership
Despite the positive momentum, challenges remain. India’s share of global trade is significantly smaller than that of China, and its economic ties with the EU are not as deeply integrated. However, both regions recognize the urgency of strengthening their partnership in an increasingly fractured world. As President of the European Commission, Ursula von der Leyen aptly put it, "We both stand to lose from a world of spheres of influence and isolationism. And we both stand to gain from a world of cooperation and working together."
For Europe, this partnership represents a chance to keep countries like India invested in the rules-based international order that has underpinned global stability and prosperity. For India, it is an opportunity to leverage its strategic position and growing economy to play a larger role on the global stage.
The Road Ahead
India is becoming increasingly significant to the EU as both sides seek to recalibrate their strategic partnerships in a rapidly changing global landscape. For the EU, India's size, economic growth, and democratic credentials make it an attractive partner. Meanwhile, India is pursuing a "multi-alignment" foreign policy to diversify its partnerships and enhance its geopolitical space, particularly amid uncertainties in U.S. policy.
The recent decision to bring European commissioners to Delhi signals the EU’s strong desire to deepen ties with India. Key areas of focus include technology cooperation, such as artificial intelligence, clean technologies, and digital public infrastructure. Trade negotiations have also restarted, although challenges remain. Additionally, both sides aim to address shared concerns about economic security, supply chain resilience, and reducing geoeconomic vulnerabilities.
As President of the European Commission, Ursula von der Leyen concluded her speech in New Delhi, she described 2025 as a "historic window of opportunity" to build a stronger EU-India partnership. She emphasized that this collaboration must be pragmatic and ambitious, realigning priorities to meet today’s realities. "If it can be done anywhere, it can be done here," she said, underscoring the unique potential of this partnership.
In a world fraught with geopolitical and economic challenges, the EU and India have the opportunity to define a new era of cooperation. While Europe may appear friendless at times, its willingness to engage with partners like India demonstrates a commitment to strengthening ties and navigating an uncertain future together. As she noted, "Investing in our common future is the driving force of this new era of partnership between Europe and India."
This partnership, built on shared values and mutual interests, could indeed become one of the defining alliances of the 21st century.
The following quotes from the speech of President of the European Commission, Ursula von der Leyen highlight the core themes of the speech: shared values, strategic alignment, economic collaboration, and a vision for a stronger partnership between the EU and India.
On Culture and Shared Heritage
"A nation's culture resides in the hearts and in the soul of its people."
Quoting Mahatma Gandhi, this encapsulates the deep cultural ties and mutual admiration between the EU and India.
"Above and beyond any economic or diplomatic relations, I believe it is culture that binds the people of India and Europe together."
On the Historical and Strategic Partnership
"India is the largest democracy and soon to be in the top 4 of the world's largest economies. Europe is a unique cross-border democracy and open economy. Together, we are uniquely placed to respond to today's challenges."
"The EU and India have the potential to be one of the defining partnerships of this Century. It is time to take our Strategic Partnership to the next level."
"This visit marks the beginning of a new era of cooperation between Europe and India—for our security, prosperity, and the global challenges we face."
On Geopolitical and Economic Cooperation
"We both stand to lose from a world of spheres of influence and isolationism. And we both stand to gain from a world of cooperation and working together."
"Make in India and ‘made in Europe’ can work together to drive our industries forward."
"A free trade agreement between the EU and India would be the largest deal of its kind anywhere in the world."
On Security and Stability
"Peace, security, and prosperity are indivisible in this world. What happens in one part of the world matters to both Europe and India."
"We are exploring a future Security and Defence Partnership with India to counter common threats—whether cross-border terrorism, maritime security threats, or cyber-attacks."
On Connectivity and Global Partnerships
"India can play a unique role as a bridge between the Global South and the rest of the world. And Europe is ready to invest to help bring that to life."
"The India-Middle East-Europe corridor is a historic opportunity. It is a modern golden road—connecting India, the Arabian Gulf, and Europe in greener, faster, and more innovative ways."
On Shared Vision and Opportunity
"In troubled times, great opportunities come. 2025 is a historic window of opportunity to build an indivisible partnership between Europe and India."
"Investing in our common future is the driving force of this new era of partnership between Europe and India."
"If it can be done anywhere, it can be done here."
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