EU vies for tightened partnerships with India, competing against Russia and China
In a bid to fortify its alliance with India, the European Union (EU) is exploring avenues for amplified cooperation. However, apprehensions have surfaced about potential hurdles that could impede these endeavors.
Kaja Kallas, the EU's top diplomat, recently voiced her concern that India's military drills with Moscow could pose a challenge to the deepening of European ties with India. This anxiety comes amidst reports of escalating trade between Russia and India, particularly in oil and fertilizer, since Russia's invasion of Ukraine in February 2022.
India's participation in the Zapad-2025 military drills, spearheaded by Russia and Belarus, has raised eyebrows. Approximately 100,000 troops, including 65 Indian personnel from the army, navy, and air force, participated in these exercises held in Nizhny Novgorod, Russia. News agency Reuters reported ballistic missiles flying over the Barents Sea during the drills, which borders NATO members Finland, Norway, and Sweden.
The EU's trade chief, Maros Sefcovic, has emphasized the importance of bolstering links with various countries to avoid being eclipsed by China and other actors. This sentiment is shared by Kaja Kallas, who has expressed her desire to see a closer relationship between the EU and India.
The EU is India's largest trading partner, with trade between the two surging by 90% over the past decade. However, this relationship has been strained by a tariff increase by the EU in retaliation for India's continued purchasing of Russian oil. This move was a response to India's overtaking of China as the world's biggest importer of Russian oil in July 2022.
The EU Commission President, Ursula von der Leyen, plans to forge a trade deal with India this year. This initiative is part of the EU's efforts to diversify supply chains and bolster cooperation on technology, defence, and the green transition.
India's Prime Minister, Narendra Modi, has shown commitment to this goal. In addition to India, the EU is also in talks over trade deals with South Africa, Malaysia, the United Arab Emirates, and others. The EU has also discussed trade agreements in 2023 with the Mercosur countries (Argentina, Brazil, Paraguay, and Uruguay) and was advancing negotiations with Australia.
However, the EU-India partnership is not only about trade. It is also about safeguarding the rules-based international order. This partnership is intended to provide a counterbalance to the growing influence of China in the region.
US-India ties have been strained due to US President Donald Trump raising tariffs on most Indian exports to 50%. Modi put on a public show of warmth with Russia's Vladimir Putin and China's Xi Jinping at the Shanghai Cooperation Organisation summit held from 31 August to 1 September in Tianjin.
Despite these challenges, both the EU and India remain committed to deepening their relationship. The potential dividends of this partnership, including increased trade, technological cooperation, and a strengthened rules-based international order, make it a relationship worth pursuing.
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