The EU and India are aiming to quickly sign a historic Free Trade Agreement (FTA), but security and defense aspects can play a key role in the document regarding the EU India strategy presented by the European Commission on Wednesday.
Sunil Prasad, executive director of the EU India Chamber of Commerce, is confident that the FTA will be signed between Dheli and Brussels by December.”
Although some obstacles remain, particularly in relation to automobiles, agriculture, wine and spirit, as Prasad suggests, they appear ready to make concessions in the name of security policies and the interests of the defense industry on both sides.
“This is a cooperation that paves the way for stronger trade and economic relations.”
The war in Ukraine, military accumulation in the Indo-Pacific region, and recent flare-ups of violence with Pakistan have led to security and defence at the central stage of New Deli and relations with 27 member states, primarily eager to cooperate with EU technology.
“India wants to be a (arms) manufacturing hub. That’s absolutely fine. But at the same time, India needs support from the European Union on this. India cannot do that,” says Prasad.
On September 10-14, the EU’s Political and Security Committee (PSC) traveled to New Delhi for the first time since its creation.
The EU delegation was composed by 27 ambassadors of the EU member states. They met figures from India’s senior institutions, political, military and economics.
Dutch diplomat PSC Chairman Delphine Pronk commented, “The insights and recommendations gathered from our visit will be presented to the top EU political leaders, paving the way for strengthened cooperation (with India).
The Political and Security Committee is responsible for the EU’s Common Foreign and Security Policy (CFSP) and Common Security Policy (CSDP).
Coordinates and recommends strategic approaches and political action options to the EU Council.
The PSC is an EU institution coordinated by the European External Action Services.
Why should the EU and India upgrade their partnership?
“Perhaps one of the worst secrets in Brussels is that there is a very strong political partnership given that the cost is not relevant, we need an agreement with India and that our most important export market, as a US, has basically disappeared into falsehoods.”
India’s defense budget for 2025-2026 will be over 70 billion euros, with New Delhi set to modernize its navy and air force.
Narendra Modi’s government is looking to diversify the military technology bases of the Indian military.
Two weeks ago, India and Germany signed a contract to manufacture it in a South Asian country. German designed submarine.
Between 2016 and 2022, New Delhi plans to acquire 62 French Rafale Fighter Jets and work with Paris to produce additional Rays in India.
A lecture on complete strategic autonomy from India to the EU?
Despite trade and political tensions with the US, India hosted a visit by US trade representatives on Tuesday with the aim of reestablishing Washington-New Delhi relations.
In early August, President Donald Trump signed an executive order threatening to raise India’s trade fees from 25% to 50% over the ongoing purchase of Russian oil.
Just a few weeks later, the Indian Prime Minister attended the China’s Shanghai Cooperation Organization (SCO) summit, where he was welcomed with smiles and warm handshakes from Russian President Vladimir Putin and Chinese leader Xi Jinping.
Both European and American observers believed that India would temporarily invert against its historic rival, China, in response to the trade war declared by the Trump administration.
Additionally, around 60 soldiers belonging to one of the Kumaon Brigades, one of the best units of the Indian Army, are currently taking part in Belarus’ Russia-led Zapad military exercises, just a few kilometres from the EU-NATO border.
“India never puts all of its eggs in one basket. It’s not just in one alliance,” says Lee-Makiyama.
The Indian army has quite a few Russian-made weapons. The presence of some military personnel in the Zapad exercises may be related to the need to observe how they work.
“President Putin has come to India by December prior to his visit to the state and is due to sign an agreement on the production of S-400 or S-500 air defense missiles,” Sunil Prasad said.
According to Lee-Makiyama, “The doctrine of Indian defense for half a century was based on the fact that at least they must fight Pakistan’s F-16.”
Another divisive issue in security cooperation between India and the EU remains the Pakistan issue. India is asking the EU to stop, in addition to the general preference scheme with Islamabad, in the Indian eye, because it is an unfair privilege.
In fact, this is a trade scheme based on a system of preferences for certain specific sectors, such as textiles, which the EU guarantees to Pakistan, in exchange for compliance with human rights treaties and principles of good governance.