EU Shifting India Towards Its Sphere, Countering Russia's Influence
The European Union (EU) and India are gearing up for a more robust relationship, as both parties aim to double their trade volumes and deepen defense industrial cooperation.
Germany, a key player in the EU, has expressed its support for the EU-India Free Trade Agreement (FTA), a move that India's Foreign Minister S Jaishankar has welcomed. German Foreign Minister Johann Wadephul has also suggested lowering trade barriers during a recent visit to New Delhi.
The EU sees India as a significant market for European defense manufacturers and a country looking to reduce dependence on Russia and diversify its imports. Mohan, a researcher at the German Marshall Fund, argues that Europe can buy more than €5 billion in defense exports from India by 2029. However, Europe would still need to procure equipment from trusted partners, as Mohan noted.
The momentum in EU-India ties has not been disrupted, despite India's participation in Russia-led Zapad military exercises in Belarus. Mohan, the GMF researcher, has stated that these exercises have not disrupted the momentum in ties.
The EU's new strategic agenda with India is much more ambitious and singles out India as an important partner, a counterweight to China. Kaja Kallas, the EU's top diplomat, acknowledged areas of disagreement with India, particularly India's purchase of Russian oil and participation in Russia-led military exercises. However, experts suggest that while India and the EU may not iron out all differences by the end of the year, EU-India ties are on an upward trajectory.
India aims to sell at least €5 billion in defense exports by 2029. Kirkegaard, a senior fellow at Bruegel, suggests that there should be a political agreement for India's purchases of Russian oil to be on a downward trajectory.
The EU has sanctioned an Indian refinery that refined Russian crude, reflecting its commitment to curbing Russia's oil revenues.
Italy's Prime Minister Giorgia Meloni hailed "excellent" relations with India during a recent phone call with Indian Prime Minister Narendra Modi. French President Emmanuel Macron discussed Ukraine with the Indian Prime Minister and updated him on security guarantees Europe is planning for Ukraine.
Countries such as Germany, Austria, and the EU support closer relations with India due to its strategic importance in the Indo-Pacific, its rapidly growing economy, and potential in areas like technology, security, and trade. They are interested because India offers significant economic growth opportunities, is a key partner in security and technological cooperation, and serves as a counterbalance in global geopolitical dynamics, especially amid changing alliances and regional security considerations.
India has earmarked more than €70 billion ($83 billion) for defense for 2025-2026, indicating its commitment to bolstering its defense capabilities. European Commission President Ursula von der Leyen said, "Now is the time to focus on reliable partners and double down on partnerships rooted in shared interests and guided by common values."
As both the EU and India navigate their relationship, it is clear that they are moving towards a more strategic partnership, one that is rooted in shared interests and guided by common values. This partnership promises to bring mutual benefits, fostering economic growth, defense industrial cooperation, and a counterbalance in global geopolitical dynamics.
