The European Union (EU) has recently taken significant steps to enhance its relationship with India, embracing a comprehensive five-pillar strategy amid shifting global alliances and emerging uncertainties. This initiative, announced by the European Commission, addresses critical areas of collaboration including sustainable fuels, green hydrogen, critical raw materials, artificial intelligence, cybersecurity, and defense policy. This strategic framework aims to fortify bilateral ties as both entities prepare for an anticipated EU-India summit scheduled for early 2026. The call for closer cooperation is underscored by the geopolitical landscape that necessitates seeking alternative partnerships as traditional alliances falter.
The timing of the EU’s strategic announcement is particularly striking, coinciding with India’s involvement in joint military exercises with Russia and Belarus, which has raised eyebrows within the EU. India recently participated in the Zapad 2025 exercises, stirring concern in Brussels about India’s historical ties with Moscow, especially given the EU’s position on sanctions against Russia. Despite the EU’s apprehensions over India’s actions, particularly regarding its refined Russian crude oil exports, there is a growing consensus that a partnership with India, the world’s most populous nation and a key player in the Indo-Pacific, offers substantial advantages amidst the current geopolitical turbulence.
High Representative Kaja Kallas articulated the urgency of establishing reliable partnerships during the EU’s recent announcement, emphasizing the potential void in global leadership that needs to be addressed. Addressing the complexities of India’s relationship with Russia, Kallas acknowledged the challenges posed by India’s military exercises with Moscow, viewing them as existential threats to EU security. However, she stopped short of demanding that India choose between allies, recognizing the historical ties that complicate such decisions. This nuanced approach underscores the EU’s desire for cooperation without forcing India into an adversarial stance.
The prospect of an EU-India free trade agreement has emerged as a centerpiece of these diplomatic efforts, with negotiations expected to be finalized by the end of the year. Despite a burgeoning trade relationship, both parties face notable hurdles: the EU grapples with Indian protectionism, while India is concerned about stringent EU climate and labor regulations. The backdrop of this trade discourse has been heavily influenced by the legacy of former U.S. President Donald Trump, whose tariffs have significantly affected both the EU and India. As U.S.-India relations deteriorate, the EU seeks to position itself as a key ally, recognizing the strategic importance of forging a robust economic partnership with India.
In addition to trade, the EU is pursuing a formal Security and Defence Partnership (SDP) with India, which would mark a significant step in defense collaboration. This potential partnership would allow India to partake in the EU’s €150 billion SAFE program, aimed at enhancing collective defense capabilities. Such an agreement not only aligns with India’s foreign policy of multi-alignment but also presents the EU with an opportunity to counterbalance India’s ties to Moscow and Beijing. Through the proposed SDP, both the EU and India could harness mutual strategic interests while advancing their respective national security objectives.
The evolving dynamics in the EU-India relationship highlight the broader geopolitical shifts at play. Through multi-aligning foreign policies, India has cultivated relationships that allow it to navigate complex international waters. For the EU, India’s positioning offers a chance to engage with a nation that can act as a moderating voice against anti-Western sentiments in various global forums. This cooperative framework not only reflects the shared interests of India and the EU but also signals a strategic realignment towards fostering deeper connections in a rapidly changing world. As both regions forge ahead, the coming years will be crucial in determining the shape and depth of this partnership, especially as they confront shared global challenges.
