Trade, security dominate EU’s India agenda; Modi says ready for next level in ties

NEW DELHI: Under pressure from the US to impose tariffs on India for its oil purchase from Russia, the EU Wednesday rolled out a new strategic agenda for boosting bilateral cooperation with India, including through the creation of an EU-India Security and Defence Partnership that would also facilitate defence industrial collaboration, along with technology, maritime security and counterterrorism cooperation.

Following the launch of EU’s proposals for a comprehensive strategic agenda that will be adopted at the next India-EU summit, European Commission President Ursula von der Leyen spoke to PM Narendra Modi to brief him about EU’s vision for ties with India, while also wishing him on his birthday.

'Will open a new chapter in ties'
“Delighted to know about the 'New Strategic EU-India Agenda' adopted today. India is ready to take the India-EU relationship to the next level. It is our shared commitment, shared goal, and shared responsibility. We remain committed to an early and peaceful resolution of the Ukraine conflict,” said Modi in a post on X, appreciating the agenda.

The president said India and the EU will open a new chapter in ties and that she discussed progress in trade talks and how they can work together to effectively support Ukraine’s "fight for freedom".

Both the EU and India want to upgrade their 2004 strategic partnership with a new comprehensive agenda, as they look for ways to offset likely damages from President Donald Trump’s tariff policy. While the leaders reiterated their commitment to have the free trade agreement (FTA) by the end of this year, there’s still a lot of ground to be covered in the trade negotiations and differences over Russia continue to act as an impediment in ties.

EU foreign policy chief Kaja Kallas stressed at the launch that India’s oil procurement from Russia remained an issue, saying that “ultimately, our partnership is not only about trade, but also about defending the rules-based international order. On the trade deal, Kallas warned that nothing is agreed till everything is agreed. EU officials, however, have ruled out tariffs or sanctions against India for its crude purchase from Russia.

India and the EU held the 13th round of FTA negotiations here last week and another round is expected early next month in Brussels. However, EU’s trade commissioner Maros Sefcovic, who visited India last week, said he had expected more progress in the last round of talks.

As India encourages the EU to double down on defence and security cooperation and raise its profile in the Indo-Pacific, the EU also announced that the 2 sides are launching negotiations on a Security of Information Agreement that will facilitate the exchange of classified information and stronger cooperation in areas related to security and defence.

“This could also pave the way for India’s participation in EU security and defence initiatives in line with EU Treaty-based frameworks,” said the EU in its joint communication on the agenda.

There was also a mention of the Pahalgam terrorist attack in the agenda with the EU calling it a tragic reminder of terrorism’s human cost and committing to further strengthening counterterrorism cooperation to assess global threats, counter extremism and terrorism financing.

According to the EU, its increasing strategic engagement in the Indo-Pacific – especially its support for regional partners in comprehensive security areas – aligns closely with India’s role as a key pillar of regional stability and its deepening cooperation with partners including the US, Japan, Australia, and ASEAN member states. “The two sides should improve coordination and exchange views on the links between the Euro-Atlantic and Indo-Pacific regions, particularly the connection between the Mediterranean, the Red Sea, and the Indian Ocean as key interfaces between the two,” it proposed.

Apart from defence and security, the EU proposed 4 other pillars for expanding cooperation: prosperity and sustainability, technology and innovation, connectivity and global issues and enablers across pillars.

According to Indian authorities, the agenda recognizes India’s rising global profile, economic might, important security role, technological prowess, demographic dividend and its growing influence in world affairs. “It identifies India as a natural strategic partner, focusing on converging interests, complementary strengths and shared political will,” said an official. In their conversation on Wednesday, both leaders welcomed efforts towards further strengthening the India-EU Strategic Partnership for mutual prosperity, as well as for jointly addressing global issues, fostering stability, and promoting a rules-based order.
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