India-EU relations: Seizing the moment for a strategic partnership

This article is authored by Shishir Priyadarshi, president, Chintan Research Foundation and former director of economic development, WTO.

The Joint Communication on a New Strategic EU-India Agenda signed on September 17, 2025 marks an inflection point for relations between India and the European Union (EU), laying out a robust, multi-pillared framework for collaboration that opens a wealth of new opportunities for both partners to advance prosperity, security, and global leadership This agenda identifies India as a vital foreign policy priority for the EU: The world’s fastest-growing major economy, a key democracy, and a rising global power, with converging interests and complementary strengths to those of the EU.

The EU and India relations (HT Archive)

It marks a pivotal moment in the relationship between the EU and India; it is a clear and ambitious roadmap to deepen, broaden, and elevate a partnership that is more critical than ever. In a world grappling with geopolitical shifts, economic uncertainty, and existential climate threats, this agenda provides a powerful framework for two of the world's largest democratic and economic blocs to collaborate for mutual prosperity and global stability. The opportunities it unlocks for growth, innovation, and security are immense, signalling a new dawn for a relationship poised to reach its full potential.

The communication sets out five pillars—prosperity and sustainability, technology and innovation, security and defence, connectivity and global issues, and enablers across pillars—that collectively constitute a strategic reset and escalation of ambitions.

Trade and investment are at the heart of the new roadmap. The present global climate demands this focus. The EU remains India’s largest trading partner, and the proposed Free Trade Agreement (FTA), with a targeted conclusion by end-2025, could become the world’s largest such deal, unlocking unprecedented flows of goods, services, and investment. The EU aims to scale up investments in India via its Global Gateway initiative, de-risking private sector engagement and supporting projects in renewable energy, urban transport, digital infrastructure, and more. Regulatory convergence, transparency, and market access will directly boost jobs—particularly for women—and integrate supply chains, with the creation of Blue Valleys to facilitate industry-driven engagement.

The second big area is technology and innovation. Both sides will build a deeper partnership in critical emerging technologies, digital transformation, and research. The agenda supports linkages between European and Indian SMEs, incubators, and startups—including a proposed EU-India Startup Partnership—and invites India into the Horizon Europe Research Programme Cooperation on Artificial Intelligence, advanced semiconductors, secure digital public infrastructure, high-performance computing, and space technology will catalyse innovation and widen India's access to frontier European expertise.

The agenda also proposes an EU-India Security and Defence Partnership, advancing collaboration in maritime security, cyber defence, crisis management, counterterrorism, and defence industry development. Negotiations for a Security of Information Agreement are set to begin, enabling the exchange of classified materials and opening avenues for India’s participation in future EU missions or initiatives]. Joint action against hybrid threats, crisis management, and the protection of critical infrastructure—especially in the maritime domain—is prioritised, reflecting shared commitments to a free, open Indo-Pacific rooted in international law

The EU supports India's regional connectivity ambitions, prominently backing the India-Middle East-Europe Economic Corridor (IMEC) and trilateral cooperation through the EU’s Global Gateway. Labour mobility will be enhanced via a European Legal Gateway Office and a broader framework covering study, work, and research opportunities. The agenda foregrounds cooperation in global governance, climate action, food security, and sustainability as joint responsibilities, positioning India and the EU as champions of multilateralism and the rules-based order.

EU and India will also invest in skilled mobility, people-to-people connections, business engagement, and reinforced institutional architecture. This includes mutual recognition of qualifications, exchanges in academia, and closer integration of business communities to ensure pragmatic, implementable outcomes

Prime Minister Modi welcomed the roadmap, noting the new agenda’s alignment with India’s vision of developed nationhood by 2047, and reiterating India’s stance on peaceful global conflict resolution The EU also views India as an indispensable partner in diversifying supply chains and strengthening economic resilience amidst current geopolitical uncertainties—especially in the context of weaponised dependencies and disrupted global markets

While the roadmap recognises differences—such as India’s energy ties with Russia and occasional divergence on third-country policies—it proposes institutional mechanisms to address these, including thematic dialogues and expanded consultations. The focus remains on maximising the vast untapped potential in trade and investment, scientific collaboration, and joint global action, rather than dwelling on areas of disagreement.

• Trade and FTA completion: The FTA can boost Indian and EU businesses by lowering tariffs, improving legal predictability, and integrating supply chains. Sectors set to gain include manufacturing, digital services, aviation, agritech, and pharmaceuticals.
• Innovation and digital economy: India’s vibrant startup scene and growing tech infrastructure stand to benefit from research ties, talent mobility, and access to EU investment and expertise in emerging sectors like AI, green hydrogen, and advanced manufacturing.
• Security and global order: Shared efforts in maritime security, counterterrorism, and crisis management will enhance stability across the Indo-Pacific and beyond. The partnership can serve as a platform to shape regional security frameworks and respond to new threats, including cyber and hybrid risks
• Green transition: Collaboration on clean energy, sustainable agriculture, circular economy, and climate finance will accelerate India’s decarbonisation and strengthen its position as a green technology hub
• People-to-people, mobility, and global influence: By promoting skilled exchanges and mutual recognition of qualifications, the agenda strengthens the soft power of both partners and sets global standards for governance and economic engagement.

The New Strategic EU-India Agenda has the potential to transform the bilateral relationship from a transactional one a truly strategic one. By harnessing complementary strengths in trade, technology, security, and global governance, both India and the EU can craft a partnership that will shape not only their futures but also the global architecture of the 21st century. This agenda is not merely a vision—it is a concrete roadmap for shared prosperity, security, and rule-based cooperation, uniquely suited to the demands of a multipolar world.

As implementation unfolds, policymakers, businesses, and civil society across India and the EU must seize the opportunities it creates, closing gaps and building bridges for a resilient, forward-looking, and mutually enriching partnership

This article is authored by Shishir Priyadarshi, president, Chintan Research Foundation and former director of economic development, WTO.