03 Mar, 2025
Europe is recalibrating its global partnerships as geopolitical challenges mount. Last week, European Commission President Ursula von der Leyen, accompanied by her fellow commissioners, visited India in a significant move to strengthen EU-India relations. This visit resulted in key announcements, including a proposed free trade agreement by the end of the year and a defense and security partnership modeled after agreements with Japan and South Korea.
The EU’s shift in stance towards India marks a departure from its previous criticisms, particularly regarding India's neutral approach to the Russia-Ukraine conflict. However, Europe now recognizes that its strategic autonomy depends on diversifying partnerships. With its security reliance on the U.S. under strain and economic ties with China becoming more precarious, the EU is looking to India and other global players, such as Japan and Latin American nations, to fill the gap.
Despite these efforts, India’s share in global trade remains at around 2%, making it unlikely to replace China in European supply chains. Yet, India's growing industrial capacity, particularly in defense manufacturing, is an asset. Companies like Bharat Forge are scaling up artillery production, aligning with Europe’s need to rearm amid global instability.
While Europe seeks to maintain its influence in a shifting global order, India is leveraging these diplomatic overtures to strengthen its own economic and strategic position. The EU’s willingness to engage with India reflects a broader necessity to build alliances amid evolving geopolitical tensions.
For European policymakers, keeping India invested in the multilateral order is essential for stability. While the EU may not find a complete solution to its economic and security dilemmas in India, fostering deeper ties is a necessary step toward securing its future in an unpredictable world.
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