The European Union has proposed a new strategic agenda to ramp up its engagement with New Delhi in several key sectors such as defence, trade and technology at a time when when New Delhi is dealing with the US administration under President Donald Trump in post tariff-era.
“Now is the time to double down on partnerships rooted in shared interests and guided by common values. With our new EU-India strategy, we are taking our relationship to the next level.” European Commission President Ursula von der Leyen said announcing the initiative on 17 September in a statement.
The new document was released in Brussels by the European Commission and the 27-nation bloc’s high representative for foreign affairs and security policy, Kaja Kallas.
Kallas, however, said India’s military exercises and its purchase of Russian oil “stand in the way of closer ties”. “India’s participation in Russia’s military exercises and its purchase of Russian oil stand in the way of closer ties. Because, ultimately, our partnership is not only about trade but also about defending the rules-based international order,” Kallas said adding “Our negotiations will address these challenges with the aim of adopting a joint roadmap at the EU-India summit in early 2026,” she added.
President Ursula von der Leyen said Europe is already India’s biggest trading partner. “We are committed to finalising our Free Trade Agreement by the end of the year. Europe is open for business. And we are ready to invest in our shared future with India,” she said.
The FTA assumes significance amid turbulence created by the tariff policies of the US administration. It is also significant since it follows the announcement of the EU-US deal. The EU has indicated flexibilities for the US on the contentious Carbon Border Adjustment Mechanism.
The commission said its closer partnership with India is increasingly becoming vital in the wake of shifting geopolitical realities and that it is imperative for the two sides to strengthen economic growth and security. The European Union is India’s biggest trade partner, with bilateral trade in goods recording $135 billion in the financial year 2023-24.
Last week, Swedish Ambassador to India, Jan Thesleff, told LiveMint that EU-India trade agreement could become the world’s largest, covering 1.9 billion people.
President Ursula wishes PM Modi
Hours after the ‘New Strategic EU-India Agenda’ was unveiled, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reaffirmed their commitment to finalise the much-awaited India-EU free trade deal by the year-end.
The top EU leader dialled Modi to greet him on his birthday. In the phone conversation with the European Commission chief, Prime minister Modi conveyed his appreciation for the EU adopting the new strategic agenda that aims to “deepen, broaden, and better coordinate” bilateral cooperation between the two sides.
India-EU Strategic Partnership
PM Modi thanked President Ursula for her for the birthday greetings. “Delighted to know about the ‘New Strategic EU-India Agenda’ adopted today. India is ready to take the India-EU relationship to the next level. It is our shared commitment, shared goal, and shared responsibility. We remain committed to an early and peaceful resolution of the Ukraine conflict,” he said on X.
Prime Minister’s Office said in a statement that the two leaders “welcomed efforts towards further strengthening the India-EU Strategic Partnership for mutual prosperity, as well as for jointly addressing global issues, fostering stability, and promoting a rules-based order”.
“India remains committed for an early and peaceful resolution of the conflict in Ukraine,” it said.
The new agenda marks a significant milestone in relations between the two sides as it aims to “deepen, broaden, and better coordinate” bilateral cooperation, enhance prosperity and security for both partners and help tackle major global challenges, the commission said
The agenda will have to be ratified by all the 27 member nations of the EU. After the ratification process, it will be adopted at the India-EU summit that is expected to be held in the first quarter of next year.
Five Key Areas Identified
The new strategic agenda identifies five areas of shared interest that include security and defence, connectivity and global issues, prosperity, sustainability, technology and innovation.
“Beyond the bilateral dimension, the new strategic agenda highlights EU-India joint engagement on global issues and with third partners, reflecting India’s growing global influence,” the EU said.
Defence Pillar
Under the defence pillar, the document identified maritime security, cyber defence, and counterterrorism as areas to expand cooperation.
It said the launch of negotiations for a security of information agreement to facilitate classified information exchange will support closer security and defence cooperation.
Closer cooperation on the Indo-Pacific, addressing hybrid threats, space security, and intensifying engagement on Russia’s war against Ukraine and sanctions are other areas of focus, it said.
Now is the time to double down on partnerships rooted in shared interests and guided by common values.
The document, however, did not elaborate on its reference to sanctions.
The new strategic agenda also emphasised strengthening regional connectivity initiatives, such as the India-Middle East-Europe Economic Corridor (IMEC) and advances Global Gateway and EU-India trilateral cooperation with and in third countries.
