Why in news?
European Union unveiled a new comprehensive strategy on Strategic EU-India Agenda on September 16-17, 2025, to significantly strengthen bilateral relations with India. 

The comprehensive plan centered around five key pillars:

• Prosperity and Sustainability: Aims to boost trade and investment, with a high priority on finalizing a Free Trade Agreement (FTA) by the end of 2025, strengthening supply chains, and promoting green transitions including clean energy and climate resilience.
• Technology and Innovation: Enhances cooperation in emerging technologies such as AI, semiconductors, and space tech through initiatives like the EU-India Startup Partnership and Horizon Europe, also supporting digital infrastructure and research.
• Security and Defence: Focuses on maritime security, cyber defense, counterterrorism, crisis management, defense industrial cooperation, and joint strategic consultations, with an emphasis on Indo-Pacific security and addressing hybrid threats.
• Connectivity and Global Issues: Supports regional connectivity projects like India-Middle East-Europe Economic Corridor (IMEC) and EU’s Global Gateway initiative, while fostering cooperation in multilateral forums on global governance, international law, and climate.
• People-to-People Cooperation: Promotes skills and labor mobility via frameworks like the European Legal Gateway Office along with enhanced engagement with civil society, youth, academia, and business sectors.

Significance for India

• Elevates bilateral relations, facilitating trade, investment, and mobility of skilled professionals.
• Supports India’s innovation and green transition goals through joint research and technology cooperation.
• Enhances security through cooperation in defense, cyber security, crisis management, and maritime security.
• Positions India as a key partner in global governance, multilateral cooperation, and regional stability.
• Promotes regional connectivity through initiatives like the India-Middle East-Europe Economic Corridor (IMEC), improving trade routes and geopolitical ties.
• Provides India access to greater investment and advanced technologies from the EU, aiding goals like Atmanirbhar Bharat and sustainable development.

Significance for EU

• Enhances EU's economic interests by aiming to finalize the largest Free Trade Agreement (FTA) with India by end of 2025, boosting trade, investment, and supply chains.
• Strengthens technology and innovation cooperation through initiatives like the EU-India Startup Partnership and Horizon Europe program.
• Expands security and defense cooperation, including maritime security, cyber defense, counterterrorism, and defense industrial collaboration.
• Promotes multilateral engagement on global governance, international law, and common values boosting the EU’s global strategic position.

Benefits for Businesses and Industry

• Expected finalization of the EU-India Free Trade Agreement (FTA) reduces tariffs and improves market access.
• Cooperation in emerging sectors like digital economy, AI, green hydrogen, pharma, and defense industrial capabilities.
• Encourages investments, joint ventures, and knowledge exchange, boosting innovation ecosystems.

Key Challenges in EU-India Strategic Agenda

• Stalled Free Trade Agreement (FTA) Negotiations: Ongoing talks for over 15 years between the EU and India have been hindered by major differences. The EU demands lower tariffs on automobiles, spirits, and dairy, while India seeks more favorable terms, creating a deadlock.
• India's Military and Energy Ties with Russia: India's continued participation in Russian military exercises and its purchase of Russian oil remain prominent obstacles.
• Regulatory and Policy Differences: Stricter EU intellectual property rights (IPR) rules conflict with India's policies on affordable generic medicines, posing challenges in trade and technological cooperation.
• Visa and Mobility Barriers: Indian students, professionals, and business people face stringent visa and work permit regulations in the EU, limiting people-to-people and business exchanges.
• Differences in Defence and Strategic Priorities: While India depends significantly on Russian defence supply chains, the EU aims to deepen defence cooperation with India.
• Geopolitical and Global Issues: Divergent approaches to international conflicts, especially India's neutral stance on the Russia-Ukraine war versus the EU's strong sanctions regime, also strain the partnership. Additionally, China's role as a major trade partner for both creates complex dynamics in Asia-Europe relations.

Download Pdf