India’s engagement with Europe has deep historical roots that date back to the early years of India’s independence. Several European countries, including the Netherlands and Germany (then West Germany), were among the first to establish diplomatic relations with India after 1947, laying the foundation for long-term political and economic engagement. As European integration gathered momentum, India was also among the earliest countries to establish diplomatic relations with the European Economic Community (EEC) in 1962, thereby recognising Europe as an emerging collective political and economic bloc.
Over time, this engagement developed into a well-defined relationship with the European Union (EU). The key highlights of this exciting yet ever-strengthening relationship were the Joint Political Statement of 1993, the Cooperation Agreement of 1994, the first India–EU Summit in 2000, and the Strategic Partnership ties in 2004 (Ministry of External Affairs).
While these developments reflected steady progress, the India–EU relationship for much of the early 2000s remained unrealised relative to its potential. However, changing global political
realities in the last decade, particularly the rise of China, disruptions caused by the COVID-19 pandemic, the Russia–Ukraine war, and the ever-changing global order, have created new
incentives for both India and the EU to reassess their partnership.
The India–EU relationship is increasingly shaped not only by shared democratic values but also by strategic convergence and mutual necessity. This paper argues that the India–EU partnership
is being re-imagined by geopolitical shifts, economic restructuring, and the search for stability in a multipolar world.
The Evolution of the India-EU Partnership
Bilateral relationships with individual states played an important role in India’s
post-independence diplomatic outreach, particularly in areas of trade and development cooperation. The establishment of diplomatic relations with the EEC in 1962 marked a turning point, as India recognised the growing importance of Europe as a collective entity rather than merely a group of individual states (European Economic and Social Committee).
During the Cold War, India’s foreign policy was largely shaped by non-alignment, while Europe remained divided along East–West lines. As a result, India–Europe relations did not further develop until the end of the Cold War and the formation of the European Union (EU). The Joint Political Statement in 1993 and the Cooperation Agreement in 1994 formalised political dialogue and expanded cooperation beyond trade into areas such as science & technology, and development assistance (European External Action Service).
The first India–EU Summit in Lisbon in 2000 further formalised their partnership. The relationship deepened in 2004 when it was upgraded to a Strategic Partnership at the Hague Summit. Progress remained uneven despite these steps due to differences over trade liberalisation, regulatory standards, and political priorities. Major global challenges in the 2010s and 2020s, however, have given India & EU reasons to revitalise their relationship.
Changing World Order
Why the India-EU relationship must be re-evaluated has a lot to do with the changing world order. This paper will discuss four key geopolitical situations that are helping to strengthen India-EU relations.
Rise of China
In recent decades, China has risen as a major economic, technological, and military power. China’s assertiveness, particularly in the Indo-Pacific region, has raised concerns in both India and Europe about supply chain dependence, economic coercion, and strategic vulnerability.
According to recent data, China dominates the solar photovoltaic (PV) supply chain, and over
90 % of solar panels installed in the European Union come from Chinese manufacturers, creating a high degree of dependence on Chinese technology and imports for the EU’s clean energy transition. (Israel, Karl-Friedrich)
For the EU, the realisation that excessive reliance on China poses long-term risks has led to a policy shift towards “de-risking,” creating space for deeper engagement with India as an
alternative economic and strategic partner (European Parliament).
The COVID-19 Pandemic
The COVID-19 pandemic highlighted several vulnerabilities in the world’s supply chains and
healthcare systems. Both India and the EU experienced disruptions that enforced a reassessment of economic interdependence and self-reliance.
Under project Vaccine Maitri, India supplied over 235 million COVID‑19 vaccine doses to 98 countries, demonstrating its manufacturing capacity and diplomatic outreach not only to the EU but to the entire world.
Russia-Ukraine war
The Russia–Ukraine war altered Europe’s security landscape like never before. It also exposed Europe’s dependence on external energy suppliers and highlighted the fragility of existing geopolitical assumptions.
For India, the war reinforced the importance of strategic autonomy, particularly in the direction of multi-alignment. It also reinforced India’s strategy of investing in diverse and alternative global partnerships. While India and the EU have widely differed in their responses to the
conflict, the broader lesson for both has been the need for resilient partnerships that can withstand global shocks.
Shifting U.S. Politics and the EU’s pursuit of strategic autonomy
Finally, growing uncertainty about the United States’ role in global leadership has encouraged both India and the EU to explore greater strategic autonomy.
In 2025, the United States under President Donald Trump implemented a broad set of reciprocal tariffs on imports from major trading partners, including India and the European Union, aiming to reduce trade deficits and protect American industry. India was hit with tariffs as high as 50 % on many exports, including textiles and chemicals, after initial duties were increased in response to U.S. concerns, significantly raising costs for Indian exporters and sparking fears of billions of dollars in export losses. This disrupted negotiations on a bilateral trade agreement and prompted India to explore diversification of export markets and sectoral support measures to blunt the
economic impact. (Times of India)
In the same year, the United States also imposed 25 % tariffs on EU steel and aluminium, raising costs for European exporters and threatening transatlantic trade (Commission responds to unjustified US steel and aluminium tariffs with countermeasures). The EU criticised the tariffs as harmful and prepared countermeasures, while signalling readiness to challenge the U.S. at the WTO to protect its trade interests (EU to launch case against US over ‘unjustified, harmful tariffs’).
While the US still remains an important player for both India and the EU, shifting domestic priorities and changing foreign policy approaches have reinforced the need for diversified alliances.
Re-imagining the partnership
Trade, Investment, and Supply Chains
At the heart of the India–EU partnership lies, and will always lie, economic cooperation. EU is one of India’s largest trading partner, while India is a growing market for European goods, services, and investments. The decision to resume negotiations on a Free Trade Agreement (FTA) in 2021 after a long halt shows renewed will on both sides to strengthen economic ties (European Commission).
When it comes to diverifying the supply chain and EU’s “China-plus-one” strategy, India can be seen as an attractive destination for investment in technology, manufacturing and services.
Efforts to align regulatory frameworks, reduce trade barriers, and facilitate investment are increasingly viewed as strategic imperatives rather than purely economic objectives.
From 1st October 2025, the Trade and Economic Partnership Agreement (TEPA) with the European Free Trade Association (EFTA) entered into force. This strengthened India’s engagement with Iceland, Liechtenstein, Norway, and Switzerland, showing India’s strategy to diversify beyond traditional EU markets (European Free Trade Association).
As of 26th January 2026, India and the EU have concluded the India-EU Free Trade Agreement (FTA), completing multiple chapters on market access and intellectual property. (European Innovation Council and SMEs Executive Agency; Intellectual‑Property‑Helpdesk). Here’s a
comprehensive additional paragraph you can include in your article that discusses the EU-India Free Trade Agreement (FTA) and links it into the broader India-EU relationship:
A defining feature of the contemporary India–EU relationship has become the conclusion of the long-awaited India–European Union Free Trade Agreement (FTA), which was formally agreed in January 2026 after nearly two decades of negotiations. This landmark pact is set to reshape
economic ties between the EU, India’s largest trading partner, and New Delhi by eliminating or substantially reducing tariffs on the vast majority of goods traded between the two partners and by deepening market access for services and investment. According to the European Commission’s official overview, the agreement will remove trade barriers, simplify regulatory procedures, and strengthen cooperation in areas such as sustainable development and intellectual property protection, while potentially doubling EU goods exports to India by 2032 and generating significant duty savings for European exporters. Press releases from Indian diplomatic missions describe the deal as providing preferential market access for over 99 % of Indian
exports to the EU, unlocking opportunities particularly for sectors such as textiles, leather,
marine products, and professional services while also embedding frameworks for mobility, social security cooperation, and modern trade governance. Despite its economic ambition, the FTA is subject to ratification by the European Parliament, EU member states, and India’s domestic
authorities and will be phased in over several years, reflecting the complex balancing of
economic opportunity and domestic sensitivities on both sides. This agreement not only signals a practical deepening of bilateral trade and investment ties, but also reinforces strategic alignment in a geopolitical context marked by shifting global value chains and a shared commitment to rules-based international trade.
If you’d like, I can also provide a brief summary box or timeline of key milestones in the India–EU FTA process for your article.
Technology and Digital Cooperation
Second to the economic partnership, technology will be an important area of cooperation between India & EU. The formation of the EU-India Trade and Technology Council (TTC) in 2022, was a step towards collaboration in semiconductors, AI, cybersecurity, and digital
governance (European External Action Service). Under this TTC, India and the EU have committed to strengthening semiconductor supply chains, research and innovation, and fostering
talent development. (Joint Statement: Second Meeting of the India‑EU Trade and Technology Council; India, European Union sign MoU on semiconductor research and innovation).
For India, cooperation with the EU offers access to advanced technologies and standards, while for the EU, India provides massive scale and talent.
Climate Change and Sustainable Development
Climate cooperation represents another key pillar of India–EU relations, as both sides have committed to addressing climate change. However, their developmental priorities differ for
various reasons, such as scale and economic development. The EU’s emphasis on sustainability and green transition aligns with India’s increasing focus on renewable energy, green hydrogen, and climate-resilient growth. Joint initiatives in clean energy, climate finance, and sustainable
infrastructure reflect a pragmatic approach to balancing environmental responsibility with developmental needs.
India and the European Union have strengthened their shared commitment to this topic under the Paris Agreement and the EU‑India Clean Energy and Climate Partnership. This cooperation
focuses on clean energy transition, renewable energy and energy efficiency. The end goal being to reduce greenhouse gas emissions and build resilient infrastructure in both regions
(India‑European Union Partnerships for Sustainability, Clean Energy & Climate Action; EU and
India agree to develop trilateral cooperation).
Through these joint efforts, India and the EU aim to strengthen global climate action, advance
sustainable development goals, and demonstrate how large, diverse economies can work together to address the urgent challenges of climate change.
Security and the Indo-Pacific
Security cooperation, particularly in the Indo-Pacific region, has gained prominence in recent years. The EU’s Indo-Pacific strategy and India’s own regional outlook increasingly overlap in their emphasis on freedom of navigation, rule-based order, and maritime security.
While the EU does not play a direct military role in the region, its growing political and economic engagement complements India’s strategic interests and reinforces the broader
rules-based international order and the Indo-French partnership is definitely something the EU can learn from.
Constraints and Challenges
Despite growing convergence, several challenges continue to constrain the India–EU partnership.
Differences over human rights, data protection, and regulatory standards often complicate negotiations and political dialogue. India has expressed concerns about the EU’s normative approach and its potential impact on domestic policy autonomy, while the EU still holds value-based diplomacy as important.
Trade negotiations also face obstacles due to conflicting economic priorities and protectionist tendencies. For India, maintaining strategic autonomy while deepening partnerships with
multiple global actors requires careful balancing.
Future Prospects and Conclusion
The re-imagined India–EU partnership reflects a shift from idealistic expectations to pragmatic cooperation shaped by global political realities. Rather than seeking complete alignment, both sides increasingly recognise the value of incremental progress based on shared interests and
mutual benefit. As the global order becomes more multipolar and uncertain, India and the EU are likely to view each other as essential partners in promoting stability, resilience, and sustainable growth.
While challenges remain, the evolving partnership demonstrates a growing understanding that long-term cooperation between India and the EU is not merely desirable but necessary.