The relationship between India and the European Union is about to get much stronger. Currently in Brussels, External Affairs Minister S. Jaishankar is hopeful that a trade agreement could be reached by the end of the year. According to Jaishankar, this optimistic perspective is a result of Europe’s growing “realistic” approach to international issues.
While a positive sentiment prevails, India harbors “deep reservations” about the EU’s Carbon Border Adjustment Mechanism (CBAM). This crossroads moment for India-EU relations, defined by shifting geopolitical configurations and common interests around strategic autonomy, is the centerpiece of this article.
Europe’s Shifting Realism
European thinking undergoes a remarkable change in outlook, according to Minister Jaishankar. There is an increasing discussion of “strategic autonomy” in Europe today. India has been advocating for this for decades, but for the first time, Europe now begins to converge with India on strategic thought, outgrowing the narrow framework of days gone by.
Consistent Indian advocacy of a multi-polar world and self-reliance made more resonance with policy circles in Europe. A new realism about Europe creates fertile ground for deeper collaboration.
Trade Agreement in Sight: Reciprocal Advantage Option
The India-EU trade agreement is a key plank of the negotiations ongoing in Brussels. S. Jaishankar is set to meet EU chief Ursula von der Leyen and EU Foreign Minister Kaja Kallas today, with the trade pact high on the agenda. He is firm in his conviction that a deal would be ready by year-end. Both sides recognize great economic potential of enhanced trade and investment.
An overall agreement is going to unlock new markets, reinforce innovation, and create jobs and benefits businesses and citizens in both regions. This ambitious timeline reflects a shared commitment towards accelerating economic integration.
Indian Sticking Points: Climate tax
Despite the overall positive trajectory, great disagreements persist. India continues with “deep reservations” over the EU’s Carbon Border Adjustment Mechanism (CBAM). This climate tax levied on products of countries having less stringent climate policies by contrast is strongly resented in India. S. Jaishankar explains India’s fundamental opposition, saying, “We are against the idea that one part of the world will set standards for everybody else.”
India views CBAM as unfair and protectionist. It says it ignores the multiple roles in climate action and the complexity of development. Addressing these concerns will be crucial for a truly equitable partnership.
Deeper & Stronger Relationship
EAM S. Jaishankar underscores India’s keen interest in forging “a deeper, stronger relationship with the EU.” He states he has “good reason to believe that the EU reciprocates.” Beyond trade, this mutual desire for closer ties includes cooperation on global governance, technology, and security.
As India and the EU navigate a difficult geopolitical landscape, a solid alliance is becoming increasingly crucial. This emerging relationship, founded on mutual respect and shared interests, is expected to lead to a more stable and balanced global order.
Creating a Future of Collaboration
This is a pivotal moment in the EU-India dialogue. India’s long-standing foreign policy principles align with Europe’s growing acceptance of strategic autonomy and realism. Most people agree that greater cooperation is the way of the future, despite the fact that problems like the CBAM still exist.
A comprehensive trade agreement by the end of the year is a realistic but promising possibility that will mark the beginning of a new phase of economic and strategic cooperation between two of the world’s most powerful democracies.
