Focus on AI, semiconductors and quantum tech as India, EU look to enhance ties

India and the EU are set to announce the close of negotiations for their mega free trade deal on January 27.

New Delhi : India and the European Union may intensify their cooperation for a rules-based global digital order, focusing on areas such as AI, semiconductors, quantum technology, cybersecurity and digital public infrastructure (DPI) — particularly the India stack — to help develop the “Eurostack” for delivering services to citizens of the 27-country bloc, people aware of the development said.

The trade talks figured in a phone call on September 4 between Prime Minister Narendra Modi and European Council President Antonio Costa and European Commission President Ursula von der Leyen (File photo/PTI)

India and the EU are set to announce the close of negotiations for their mega free trade deal on January 27, which will lay a foundation to build deeper strategic cooperation in key areas, including a just global digital order, the people said on condition of anonymity.

Both the EU and India are “stable and reliable” world powers committed to a just and equitable global order. Although the two partners have similar cooperation under the India-EU Trade and Technology Council (TTC), this could be strengthened with other like-minded partners such as Japan, South Korea, Singapore and Canada.

During its G20 presidency in 2023, India offered to share its widely acknowledged DPI system (India stack) with the global community, particularly the Global South, to provide seamless delivery of welfare schemes to millions of citizens at the click of a button.

The matter is expected to be discussed at the India-EU Leaders’ Summit in New Delhi on January 27, the people cited above said. The European Commission in July last year adopted an International Digital Strategy to foster “a safe, fair, inclusive and equal digital space” that can be used globally.

While digital cooperation for global good is a larger vision, the proposed bilateral FTA may also have specific provisions for digital trade to ensure an open, secure and trustworthy online environment. It may have provisions for personal data protection and privacy, alongside safeguards for national security, law and order, and consumer protection, they said.

A report titled ‘Trade, Technology, and Transformation: India-Europe Charting Newer Path Together’, published by the Confederation of Indian Industry (CII) in November 2025, said India has a leadership position in developing a healthy digital ecosystem.

“This is evident as India established the third-largest tech start-up ecosystem globally, with more than 31,000 start-ups in the past decade, 18% of which are women-led. By January 2024, India boasted 111 unicorns valued at over $350 billion,” the report stated.

“Europe can benefit from adapting India’s large-scale digital ecosystem such as the Digital Public Infrastructure (DPI) or India stack by adopting its core principles of interoperability, scalability, and inclusivity to enhance its own financial inclusion, delivery of citizen services and develop its own Eurostack,” it added.

The use of the Unified Payments Interface (UPI) at the Eiffel Tower, France, in February 2024 marked a milestone for the internationalisation of DPI and paved the way for the adoption of UPI across Europe.

India-EU technical cooperation is rooted in the TTC, covering three pillars: trade, technology and research. Both partners want to deepen their relationship in trade and beyond, including strengthening supply chains, economic security, food security and health preparedness. Both sides aim to set up EU-India Innovation Hubs and establish an EU-India startup partnership, the people said.

The partners also plan to coordinate in tackling emerging challenges such as violations of territorial integrity, hostile military deployments, terrorism, hybrid threats — including Foreign Information Manipulation and Interference (FIMI) — impediments to navigation and overflight, the weaponisation of space, and the security impact of climate change.

Commenting on the January 27 India-EU Summit, European Council President António Costa said in a January 15 statement: “India is a crucial partner for the EU. Together, we share the capacity and responsibility to protect the rules-based international order. This meeting will be a key opportunity to build on our partnership and drive progress in our cooperation.”