India and European Union

• India and the European Union (EU) share a strategic partnership based on shared values of democracy, rule of law, human rights, and multilateralism.

• The EU is India’s second-largest trading partner (after the US) and India is the EU’s 10th largest trading partner, accounting for over €120 billion in goods trade in 2022.

• Diplomatic relations between India and the European Economic Community (EEC), the EU’s predecessor, were formally established in 1962.

• In 1994, the EU and India adopted the Cooperation Agreement on Partnership and Development, which provided a framework for political dialogue and economic cooperation.

• The first India-EU Summit was held in Lisbon in 2000, marking the formal upgrading of ties to a "Strategic Partnership".

• A Joint Action Plan (JAP) was adopted at the 2005 India-EU Summit, focusing on political, security, and economic cooperation, people-to-people contacts, and institutional mechanisms.

• India-EU relations are managed through regular summits, senior official meetings, dialogues on foreign policy and security, trade negotiations, and technical cooperation.

Trade and Economic Relations

• In 2022, total India-EU trade in goods was worth €120.5 billion, with India exporting €61.2 billion and importing €59.3 billion.

• Key exports from India to the EU include pharmaceuticals, textiles, chemicals, jewelry, iron and steel, and agricultural products.

• Key EU exports to India include machinery, automobiles, electrical equipment, chemical products, and medical equipment.

• The EU is one of the largest investors in India, with EU foreign direct investment (FDI) stock in India valued at over €87 billion in 2021.

• India’s cumulative FDI into the EU was about €11 billion by 2020.

• Negotiations for a Broad-based Trade and Investment Agreement (BTIA) began in 2007, but were stalled due to disagreements over tariff reductions, intellectual property rights, data protection, and labor and environmental standards.

• The 17th India-EU Summit (2020) and India-EU Leaders’ Meeting (2021) led to the announcement of the resumption of FTA (Free Trade Agreement) talks, along with negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications.

• The India-EU Trade and Technology Council (TTC) was established in 2023, mirroring the EU-US TTC, to boost cooperation in critical technologies, digital governance, and supply chain resilience.

Political and Strategic Cooperation

• The India-EU Strategic Partnership: A Roadmap to 2025, adopted in 2020, outlines cooperation in foreign policy, security, counterterrorism, cybersecurity, space, and climate change.

• Both sides support a rules-based international order, strong support for the UN system, and multilateralism.

• Counterterrorism cooperation includes regular dialogues and joint working groups on issues like financing of terrorism, radicalization, and information sharing.

• India and the EU also collaborate on maritime security, especially in the Indian Ocean Region (IOR). The EU’s NAVFOR Operation Atalanta has cooperated with the Indian Navy on anti-piracy missions near the Horn of Africa.

• The EU supported India’s membership in global export control regimes, including the Missile Technology Control Regime (MTCR), Wassenaar Arrangement, and Australia Group.

• While the EU as a bloc does not explicitly support India’s permanent seat at the UN Security Council, several individual member states, such as France and Germany, have voiced strong support.