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With bilateral trade in goods worth \u20ac120 billion, the EU is India’s largest trading partner. There are 6,000 European companies operating in India and to boost that\u202frelation, The European Commission \u202fwould like to conclude a Free Trade Agreement by the end of the year, that could significantly reduce tariffs and other barriers.\u00a0<\/p>\n
After the blow to its\u202ftrade relations\u202fwith the US, following the imposition of an average tariff rate of 15%, the EU is trying to speed up agreements with other regions.\u00a0<\/p>\n
“There is a very complicated geopolitical situation so the EU is now looking at India, which is the world’s most populous country. It’s a rising economic superpower, and it’s a major actor in the so-called Global South. So it fits the credentials for a new partnership to navigate together in geopolitical turmoil,”\u202fsaid\u202fJorge Liboreiro,\u202fwho\u202fcovers\u202fEU-India relations for Euronews.\u00a0<\/p>\n
Even so, the EU’s foreign policy chief,\u202fKaja Kallas, warned that India’s historical military and economic ties with Russia need to be assessed. New Delhi purchases large quantities of weapons and oil from Moscow, helping Russia fuel its war economy and aggression against Ukraine.\u00a0<\/p>\n
“We know that India and Russia have a long-standing relationship, and I don’t think they can simply cut ties overnight,” said Angelika Niebler (Germany\/EPP), chair of the Delegation for Relations with India at the European Parliament.\u00a0<\/p>\n
The lawmaker considers that the EU has to do a pros and cons exercise through dialogue: “I think it’s important for the EU to engage, to express our concerns, but also try to understand their perspective and interests. Of course, after we have to defend our own interests,” she added.\u00a0<\/p>\n
Pragmatism\u202frules<\/p>\n
In view of the ongoing geopolitical realignment, another central pillar to be developed is the EU-India Security and Defence Partnership. India’s defence budget for 2025-2026 is \u20ac69 billion and its traditional supplier is Russia, which accounts for 36% of its purchases.\u202f\u00a0<\/p>\n
However, India has been buying more from the West, particularly the US, Israel, the UK, France, and Germany. With ties with the US deteriorating, India sees the EU as a potential new focal point.\u00a0<\/p>\n
Military supply deals have been signed with two key member states in 2025: France has sold 26 Rafale Marine fighter jets, valued at \u20ac7 billion, and Germany will build six Type 214 submarines with Indian partners, valued at \u20ac5 billion.\u00a0<\/p>\n
“Right now, India’s relations with the United States are at rock bottom, Donald Trump is doing whatever he can to alienate New Delhi: 50% tariffs, a new approach towards Pakistan. So India thinks that the European Union could be the biggest partner in the West,”\u202fsaid\u202fJorge Liboreiro.\u00a0<\/p>\n
But should the EU see India as a reliable ally when Prime Minister\u202fNarendra Modi\u202fappears to be moving closer to China, historically a rival?\u202fThe EU accuses China of industrial overproduction, export restrictions, and criticises its support for Russia’s war against Ukraine.\u00a0<\/p>\n
MEP Niebler doesn’t see\u202fIndia’s\u202fcloseness to China as an impediment: “Let’s focus on our policy. I don’t want to blame others for doing this or that.”\u00a0<\/p>\n
“We must take a pragmatic and realistic approach, always focusing on what’s in our interests, on what strengthens the European Union,”\u202fshe\u202ftold\u202fEuronews.\u00a0<\/p>\n
The European Commision wants the diplomatic efforts\u202fto work towards an EU-India summit in early 2026.\u00a0<\/p>\n
Watch the video here!<\/strong>\u00a0<\/p>\n Journalist: Isabel Marques da Silva<\/strong>\u00a0<\/p>\n Content production: Pilar Montero L\u00f3pez<\/strong>\u00a0<\/p>\n Video production: Zacharia Vigneron<\/strong>\u00a0<\/p>\n Graphism: Loredana Dumitru<\/strong>\u00a0<\/p>\n Editorial coordination: Ana L\u00e1zaro Bosch and Jeremy Fleming-Jones<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"ADVERTISEMENT With bilateral trade in goods worth \u20ac120 billion, the EU is India’s largest trading partner. There are…\n","protected":false},"author":2,"featured_media":463356,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[7655],"tags":[128577,2557,1699,730,154929,332],"class_list":{"0":"post-463355","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-russia","8":"tag-diplomatic-tension","9":"tag-european-commission","10":"tag-european-union","11":"tag-india","12":"tag-international-trade-agreements","13":"tag-russia"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/115293881269349019","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/463355","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=463355"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/463355\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/463356"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=463355"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=463355"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=463355"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}