Thriving ties

Update: 2022-04-26 15:32 GMT

One of the major takeaways of the visit of European Commission's President Ursula von der Leyen to India has been the launch of India-EU Trade and Technology Council. The agreement allows coordination of technical activities with engagement at the political level. This is the first time that India would be entering into such a pact with an international entity while the EU already has a similar agreement with the United States. The agreement is expected to open wider avenues for greater cooperation among India, the EU and the US. Ursula von der Leyen is among the strongest authority in the EU and her visit to India — coinciding with the Raisina Dialogue — reflects the primacy accorded to the bilateral relations by the EU. The visit can be analysed in the context of the Russia-Ukraine war and Europe's revived focus on the Indo-Pacific construct. Though significant for both the countries on an overall basis, the visit can be seen through two different lenses — geopolitical and economic. There could be no denying the fact that the India-EU relations, for the last six decades, have been thriving on the bedrock of sound economic cooperation. The EU is India's third-largest trading partner, accounting for 62.8 billion euros of trade. The two parties have been lately also focusing on other areas of engagement such as technology transfer, energy and climate change — providing still greater depth to the bilateral relations. During the recent meeting, apart from finalisation of the Trade and Technology council, Indian PM and Ursula von der Leyen also discussed the resumption of FTA dialogue and investment scenario. However, the European Union appears keener on the larger geopolitical aspect of India-EU relations. The EU, as stated by officials, is fully aware of hegemonic tensions between the US and China and looks forward to forging strong trade relations with India to counter the two superpowers in conflict. In practice, however, the EU has turned to India after several of its pacts with China couldn't materialise for one reason or the other. It must also be noted that Europe's rekindled interest in the Indo-Pacific makes India the most suitable partner vis-à-vis China. So, the EU is basically joining the party with Quad members in countering Chinese dominance in the region. Furthermore, the focus is not just limited on China. As Ursula von der Leyen pointed out that "rapid changes in the geopolitical environment highlight the need for joint in-depth strategic engagement", one cannot stop thinking about the indications towards Russia. In fact, during the seventh edition of Raisina Dialogue — India's annual international conference — Leyen highlighted that the impact of Russia-Ukraine invasion will not be limited to European nations and will percolate to hamper the stability in the Indo-Pacific region as well. The European Union's outreach to India is also being seen as an attempt to reduce India's dependence on Russia for defense matters, something which the West sees as the major impediment for India to be acting against the Russian onslaught in Ukraine. The key challenge here will be to strike a fine balance between the economic and geopolitical dimensions of the bilateral relations between India and the European Union. India's stand on Russia amid the ongoing war, though criticised by European countries, has been unwavering. Indian leadership is aware where its national interests lie. Both the European Union and India must make conscious efforts to ensure that thriving economic relations between India and the EU don't get affected by differing opinions on the geopolitical situation. Ideally, the economic aspects of the relations must be aptly distanced from contentious geopolitical dimensions. Both the parties must capitalise on the massive potential of trade relations between the two entities. Building up an alternative supply chain is a prerequisite for countering the belligerent China in the Indo-Pacific region. Given the magnitude of trade-related significance that the European Union holds, its active participation in the Indo-Pacific will not only counter the Chinese dominance but also prevent the consolidation of any other hegemonic control in the near future. To sum up, growing relations with the EU could be another achievement for India's foreign policy if certain impediments are avoided.

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