The world needs new leadership—will India step up to provide it?
Turning away from old friends, Europe has set out to find new ones, and this search has brought them to India. Today, the President of the European Union (EU), Ursula von der Leyen, has arrived in New Delhi, marking her third visit to India, but this might be the most important one. She has not come alone; she is accompanied by the entire European Commission—27 top political leaders. This is an unprecedented visit, as never before has such a large delegation from the European Commission visited India.
This is a clear signal that Europe wants to see India as its most trusted ally, and this is not just a diplomatic initiative but a major political move. At the beginning of her visit, the EU President paid tribute at the Mahatma Gandhi Memorial at Raj Ghat. She then met with India's Foreign Minister, S. Jaishankar, and tomorrow she will meet with India's Prime Minister, Narendra Modi. This is a two-day comprehensive visit, during which discussions will focus on various important matters between the European Union and India.
Now, let's take a look at the three main goals of this visit:
Deepening Political Relations: This is the first and primary goal for the European Union. Europe has long been under the umbrella of the United States, particularly in military and financial matters. However, the shift in U.S. policy during Donald Trump’s tenure has unsettled Europe, and now Europe is in search of new allies. Europe, especially Brussels, wants to see India as a strong and reliable partner.
Additionally, European leaders recognize that India has emerged as an important strategic force globally. Prime Minister Narendra Modi has successfully built a relationship with Trump, and now it's time for Europe to chart a new strategy. In the past, the European Union had criticized India on issues like religious freedom and the situation in Manipur, but that rhetoric has now changed. Europe is seeking closer political ties with India, which will help strengthen its position in global politics.
Trade Agreements: This is the second goal for both the European Union and India. Currently, Europe is India's largest trading partner, with a total trade volume of approximately $137 billion, which accounts for nearly 12% of India's total trade. Over the last decade, trade between India and Europe has increased by about 90%. However, there are still some commercial differences, such as Europe urging India to reduce tariffs on cars, wine, and other products, while India is demanding a reduction in European tariffs on steel, aluminum, and cement.
Discussions on a Free Trade Agreement (FTA) began in 2008 but were stalled in 2013. These talks resumed in 2022, but several issues remain unresolved. India wants protection mechanisms for its small and medium industries to prevent them from being outcompeted by larger European industries. Another demand from India is the opportunity to send more Indian workers to the European labor market, which would require some relaxation of labor laws by European countries.
If these issues are resolved, it could be a significant commercial opportunity for India, potentially one of the most important trade agreements in India’s history.
Strategic Cooperation: This is the third and final goal for both the EU and India. Currently, Europe is trying to distance itself from China and is looking towards new sources. This presents a significant opportunity for India, as it allows the country to emerge as a crucial partner in Europe's supply and manufacturing chains.
India is now looking to diversify its military supply sources, and European countries are also interested in expanding their military production. This could be a mutually beneficial relationship. The India-Middle East-Europe Economic Corridor (IMEC) is an essential part of this mission. It will help simplify trade relations between India and Europe, reducing both travel time and costs.
Given all these factors, it is clear that there is much potential in the relationship between India and Europe. In the past, this relationship was not fully leveraged, but now, in the context of new global political and trade realities, this is an extremely urgent and important step.
Technology, Environment, and Military Cooperation: Additionally, cooperation between France and India in technology, the environment, and nuclear energy is strengthening. India produces one million engineers each year, which is more than the combined total of Europe and the United States. Therefore, a strong partnership is emerging in the technology sector between India and Europe.
Moreover, China’s cheap technology market is posing a significant challenge to Europe, compelling European countries to reconsider their positions. Some European countries have become quite cautious about Chinese technology and Artificial Intelligence (AI). India is making rapid progress in technology development and AI, which presents a significant opportunity for Europe.
Thus, improving relations between India and Europe will not only benefit both sides but will also help in forming a strong global alliance."