The European Union has been putting India at its strategic centre. With its Joint Communication on a ‘New Strategic EU-India Agenda’ released in September 2025, the EU laid out a roadmap to transform cooperation across trade, security, innovation, and global governance. The document aspires to mutual prosperity, but the real test will be whether Brussels and New Delhi can turn these guidelines into results.
The Communication recognises India as a key stakeholder in multilateralism and global governance. The EU, faced with intensifying complexity, from supply chain shocks to geopolitical realignment, is seeking like-minded partners. India, for its part, is asserting its place as a rising power with system-shaping ambitions. The document affirms the ‘capacity and responsibility’ of both parties to take actions to ‘shape global outcomes’—including, but not limited to, defending human rights and democracies, climate action, and countering hybrid threats. It goes on to assert, however, that there is significant work to be done: ‘India accounts for less than 2.5% of the EU’s trade in goods and services, and Indian investment in the EU totals only 10 billion EUR.’ Moreover, the Communication cites constraints in India—like tariffs, limitations on foreign direct investment, and other restrictive measures—as key obstacles to wholly prosperous collaboration between the EU and India.
The Communication is framed around five pillars, globally urgent and domestically relevant, on both sides, notably Prosperity and Sustainability; Technology and Innovation; Security and Defence; Connectivity and Global Issues; and Enablers across the Pillars.
Prosperity and Sustainability
The EU and India recognise a large economic opportunity: bilateral trade in goods hit approximately 120 billion EUR in 2024, with services adding another 60 billion EUR. European foreign direct investment in India has soared to 140 billion EUR in 2023, nearly doubling in five years. Again, Indian investments into the EU remain limited (about 10 billion EUR), focusing heavily on sectors like IT, pharmaceuticals, biotechnology, automotives, and clean energy or climate technology.
The Communication seeks to address this gap by committing to the conclusion of a Free Trade Agreement (FTA), currently foreseen by late January 2026, after nearly two decades of negotiations. The agreement aims to reduce both tariff and non-tariff barriers, promote regulatory convergence, improve transparency and investor protection, and boost bilateral trade in services. Its broader objective is to foster stable, rules-based exchanges, integrated supply chains, and trade diversification. The Communication further embeds sustainability at the heart of this agenda in the form of clean transition, climate resilience, and food and energy security. Yet, the devil will be in its implementation and adequate monitoring.
Technology and Innovation
Within the Technology and Innovation bucket, the document focuses on joint work regarding emerging technologies, digital regulation, and research cooperation. The EU brings regulatory experience, research infrastructure, and markets. On the other hand, India brings a demographic advantage, talent pools, and a rapidly growing tech ecosystem. Cooperation in semiconductors, AI, space, and biotechnology could be monumental once the regulatory, financial, and institutional barriers are effectively addressed. India’s ‘Atmanirbhar Bharat’ (Self-Reliant India) and the EU’s ‘Competitiveness Compass’ are their respective relevant economic policy frameworks, and they could be highly complementary, providing a foundation for deeper economic and trade cooperation. Launched by Prime Minister Modi in 2020, Atmanirbhar Bharat aims to build domestic capacity and integrate India into global supply chains by attracting investment in key sectors, while the Competitiveness Compass seeks to enhance the EU’s resilience and technological sovereignty, specifically in areas like digital and green transitions. These goals align because India’s drive for advanced manufacturing and diversified supply chains can support the EU’s need for resilient sourcing, creating a strategic partnership where EU investment and technology meet India’s production capabilities, economic ambitions, and vast market.
Security and Defence
The focus of the Security and Defence pillar is to strengthen engagement on regional security, hybrid threats, maritime security, counterterrorism, and defence industrial cooperation. Considering the EU’s increasing engagement in the Indo-Pacific, as well as India’s position as a ‘pillar of regional stability,’ the Communication’s emphasis on expanding regional security comes as no surprise. The EU also proposes increased collaboration with India on cybersecurity and regional maritime security frameworks.
Both parties are actively translating this ambition into practical cooperation, most notably through the creation of a dedicated EU-India Security and Defence Partnership and the launch of negotiations for a Security of Information Agreement (SIA), which is a key signal that Brussels increasingly sees Delhi as a partner in strategic trust, despite its strong relations with Russia and tradition of non-alignment. The maritime domain is a particular focus, with India welcoming the EU’s participation in the Indo-Pacific Oceans Initiative (IPOI) and the Indian Navy engaging in joint exercises and collaboration with EU maritime security entities like European Union Naval Force (EUNAVFOR) Operation ATALANTA, and through the Critical Maritime Routes (CRIMARIO) project for maritime domain awareness. In defence industrial cooperation, the focus is shifting towards co-design, co-development, and more resilient supply chains, laying the groundwork for a broader Security and Defence Partnership. India has also been invited to consider participating in projects under the EU’s Permanent Structured Cooperation (PESCO). While there might be a great potential for enhanced cooperation between India and the EU in the security and defence domain, cautiousness should be maintained, outlining clear deliverables on both sides.
Connectivity and Global Issues
The Communication reflects a broader strategic pattern, highlighting EU–India cooperation also in third countries through infrastructure, connectivity corridors, and multilateral development initiatives. Notable examples include the India-Middle East-Europe Economic Corridor (IMEC), which links South Asia to Europe via the Middle East, and the EU Global Gateway strategy, which seeks to strengthen transport, energy, and digital infrastructure in the Indo-Pacific and beyond. These efforts are designed not only to facilitate trade and investment but also to enhance regional stability, resilience, and sustainable development.
On global challenges, the Communication outlines concrete EU support for initiatives such as the India-led Coalition for Disaster Resilient Infrastructure (CDRI), which promotes resilient urban and energy infrastructure, and a new regional risk management programme leveraging EU Copernicus satellite tools to monitor climate and disaster risks. The proposed EU–India Partnership on Humanitarian Assistance adds another practical layer, enabling joint responses to crises in vulnerable regions.
Beyond projects, the Communication emphasises the promotion of shared principles in global governance. By participating in multilateral institutions and aligning on standards for climate action, digital regulation, health, and food security, the EU and India aim to jointly uphold democratic values, human rights, and the rule of law. Nevertheless, adequately addressing climate action, enhancing sustainability efforts, and improving human rights remain topics of concern in EU-India affairs. Strengthening cooperation in these fields, pooling resources and expertise, could allow the two partners to shape norms and standards, also in emerging regions, reinforcing their role as proactive, rules-based actors on the global stage.
Enablers Across the Pillars
No strategic partnership can succeed without ‘soft’ enablers such as skills mobility, mutual understanding, business engagement, and strengthened institutional structures. Mobility between India and the EU is already gradually expanding. In 2023, Indian citizens were the largest recipients of EU Blue Cards and intra-corporate transfer permits, reflecting strong demand for high-skilled talent and fostering professional linkages across sectors.
The Joint Communication proposes concrete steps to build on this foundation. These include new mobility frameworks, expanded visa and legal gateways (mainly a priority on the Indian side), and short-term exchanges for students, researchers, and professionals. Business engagement is emphasised through bilateral fora and sectoral dialogues, connecting companies, promoting joint ventures, and supporting sustainable and digital industry partnerships. Civil society exchanges and collaborative educational initiatives should further enhance mutual understanding and institutional familiarity, reinforcing the human and societal dimension of the partnership.
Potential Impediments
While the Communication is ambitious indeed, its success will depend on how several core issues are addressed. India’s high tariffs and various non-tariff trade restrictions remain major hurdles. On the EU side, some regulatory burdens, standards, and sustainability clauses can appear burdensome from an Indian perspective. The proposed FTA must therefore balance ambition with fairness, ensuring that domestic industries on both sides feel they are not being unduly exposed without compensation. India’s relationships with Russia and the evolving dynamics with China remain sensitive issues. The EU’s foreign policy priorities regarding Russia’s war in Ukraine and human rights diverge from India’s non-aligned or multi-aligned stances.
Why It Matters For Both Sides
The timing of this reset could hardly be more important. Global challenges, from climate change to food insecurity to supply-chain fragility, make partnerships among major actors imperative. The EU and India collectively straddle numerous fault-lines: Asia and Europe, developed and developing worlds, digital governance, trade, and climate, among many others. This partnership, if successful, could help play a constructive role in promoting international stability and bolstering the multilateral system.
The Joint Communication can thus not be read in isolation. It sits at the intersection of trends reshaping the global order. The United States has remained India’s central security partner, but current volatility in the Trump administration has left New Delhi foraging for reliable alternative export partners. Additionally, the EU’s pursuit of ‘strategic autonomy,’ the ability to act independently on trade, technology, and security while preserving transatlantic ties, creates a window for deepening EU-India ties. For the EU, India’s rise offers an opportunity to diversify not only in trade but also in forging strategic partnerships. For India, the EU can offer credibility, access to its market, regulatory know-how, green finance, and multilateral leverage. Joining forces is thus sensible from multiple angles.
Beyond trade and economic cooperation, an enhanced EU–India partnership carries important geopolitical and security implications and opportunities. In the Indo-Pacific, deeper coordination can bolster stronger regional stability by supporting the rules-based maritime order, countering coercion, and enhancing resilience in supply chains critical to both Europe and India. In Eastern Europe, a stronger EU–India dialogue on technology, energy, and defense norms could complement transatlantic efforts to uphold security and deter destabilising influences. By aligning on security priorities—whether in cyberspace, critical infrastructure, or crisis response—both actors can gain not only mutual reassurance but also a louder voice in shaping a multipolar world order. This added security dimension could transform the partnership from a purely economic or diplomatic initiative into a strategic lever for stability across the European and Asian space. Yet, to ultimately reach this point, efforts will need to be made on both sides to closer align interests, bring together the two policy approaches, remove existing political and cultural barriers, and move towards effective action on the ground in all areas of envisaged engagement.
Author: Eva Eapen, EIAS Junior Researcher
Photo Credits: IA Generated