The EU’s New India Strategy Amid the China-US Rivalry

[ad_1] This month, the European Union unveiled its new technique to “reinforce prosperity and safety” with India.

The Joint Communication to the European Parliament and the Council proposes structuring the India-EU cooperation agenda round 5 focus areas: prosperity and sustainability; know-how and innovation; safety and protection; connectivity and international points; and enablers throughout pillars.

Furthermore, it dispels any notion that the EU’s “ Competiveness Compass ” and India’s “ Atmanirbhar Bharat ” focus are at odds. As a substitute, the EU Joint Communication on a New Strategic EU-India Agenda commits Europe’s regulatory experience, single market entry, and joint innovation to assist India’s inclusive and sustainable development.

The EU Joint Communication affirming Europe’s intent for deeper engagement with India comes amid ongoing India-EU commerce negotiations for a complete Free Commerce Settlement (FTA). India’s Minister of Commerce Piyush Goyal just lately stated that it is crucial “to not let the seek for an ideal deal change into the enemy of progress,” including that the course of negotiations is “extraordinarily optimistic.”

This sentiment was echoed by EU Commissioner for Commerce and Financial Safety (Interinstitutional Relations and Transparency) Maros Sefcovic, who stated that India-EU commerce negotiations have reached an unprecedented stage of “ seriousness, mutual belief, and shared ambition .” He even stated that efforts are being “maximized to finalize the negotiations by the tip of the 12 months.”

This shared emphasis on conducting an FTA stems from the huge untapped potential of India-EU ties. In 2024, India-EU commerce in items reached 120 billion euros, making a rise of about 90 % over the previous decade . This was coupled with companies commerce rising to 60 billion euros. Round 6,000 European corporations function in India, and EU FDI in India reached 140 billion euros in 2023 – nearly doubling over 5 years . Regardless of this encouraging trajectory, India accounts for simply 2.5 % of the EU’s whole commerce.

Therefore, whilst the 2 sides navigate the in depth scope of commerce negotiations, the EU Joint Communication on India identifies “vital untapped potential” between the “pure strategic companions,” amid international instability brought on by “weaponization of dependencies, unilateral commerce practices, and widening financial asymmetries.”

This reference to challenges for deeper India-EU cooperation holds particular significance amid the worldwide implications of the China-U.S. tech rivalry.

Amid China-U.S. commerce tensions, Beijing’s April 2025 choice to require licenses for exports of uncommon earth alloys, mixtures, and magnets sparked considerations for manufacturing operations internationally. In contrast to China’s December 2024 choice on banning exports of gallium, germanium and antimony for the US, the worldwide scope of the April 2025 choice demonstrated Beijing’s willingness to leverage its maintain over manufacturing and refining of important minerals.

Furthermore, the Trump-Biden-Trump continuity on proscribing China’s entry to U.S.-made important tech parts raised compliance pressures for third nations. Not too long ago, Malaysia introduced allow mandates for export of U.S. AI semiconductors to clamp down in opposition to allegations of transshipment of tech parts to China. Equally, Singapore has cracked down in opposition to entities reportedly concerned in routing of Nvidia’s chips to China’s DeepSeek.

The Trump administration has additionally continued Biden administration efforts to stage the worldwide taking part in subject for American corporations complying with U.S. restrictions on China’s entry to chip-making tools and upkeep companies. This contains looking for further compliances from Dutch and Japanese corporations, regardless of Tokyo and Amsterdam aligning export mandates with U.S. laws shortly after President Donald Trump assumed workplace in January 2025.

The influence of those widespread pressures of regulatory compliance was additionally obvious within the EU Joint Communication on India. It underscored that the 2 sides should “implement sturdy measures to forestall the unauthorized switch or misuse of delicate applied sciences and data.”

Extra broadly, the China-U.S. tech rivalry has influenced an adaptive strategy internationally. Like-minded nations are looking for long-term tech partnerships and collaborating on provide chain resilience, whereas additionally supporting indigenous efforts in tech domains. This pattern has additionally been obvious in Indian and European initiatives.

Given this alignment on adapting to pressures of the China-U.S. tech rivalry, the EU Joint Communication rightly identifies “Know-how and Innovation” as a devoted cooperation monitor. This contains figuring out precedence areas underneath the India-EU Commerce and Know-how Council (TTC), which was established in 2022 as a consultative ministerial platform to determine convergences on the intersection of commerce and tech.

The EU Joint Communication recommends that the India-EU TTC prioritize the EU-India Semiconductor Settlement, cooperation on inexperienced applied sciences, and an early-warning system for Lively Pharmaceutical Elements (APIs).

Such a directed focus underneath the India-EU TTC will help foster a collaborative analysis and improvement tradition between India and Europe, by analysis partnerships, cross-pollination between start-up ecosystems, and joint skilling and improvement packages.

India and the EU might also draw on distinctive strengths, equivalent to India’s profitable deployment and enlargement of Digital Public Infrastructure (DPI) platforms. Arrange underneath the “Digital India” push, which celebrates its tenth anniversary this 12 months , India’s DPIs have ushered in a revolution of monetary inclusion, digital identity-based authentication, and clear digital governance. The vast adoption of digital platforms has additionally bolstered India’s start-up ecosystem within the domains of fintech, edtech, and healthtech.

On this facet as effectively, the EU Joint Communication makes some pertinent suggestions like establishing “EU-India Innovation Hubs” and “Blue Valleys” as multistakeholder convening platforms for funding facilitation, requirements alignment, cross-sectoral collaboration, and so on.

Therefore, the recently-announced EU technique on India accords new momentum to precedence areas underneath the India-EU TTC and efforts to develop institutional and talent-mobility bridges between Indian and European tech ecosystems.