India and the European Union (EU) are taking significant steps to strengthen their diplomatic relationship through high-level dialogues on trade and technology. On February 27, 2025, European Commission President Ursula von der Leyen arrived in New Delhi with over 20 European officials, aiming to revitalize their strategic partnership and expand cooperation between the two entities.
The visit, described as unprecedented, marks the first time the EU's executive body engages with India since the commencement of new negotiations on trade and technology. With trade between India and the EU reaching approximately 124 billion euros ($130 billion) in 2023, the significance of this dialogue cannot be overstated. Historically, EU-India relations have experienced various challenges, particularly surrounding trade negotiations, many of which date back to 2007 but frequently encountered roadblocks.
During her visit, von der Leyen expressed: "I’ll discuss with @narendramodi how to take our strategic partnership to the next level". This phrase encapsulates the essence of their discussions, which are expected to revolve around key themes such as enhancing trade access, reducing tariffs, and bolstering cooperation on cutting-edge technologies.
A major focus will be centered around the discussions of free trade agreements. Notably, the EU aims to improve access to the Indian market for various commercial products, including automobiles, spirits, and wines, sectors where substantial tariffs have hampered growth. Currently, India imposes high tariffs on goods, which has been cited as one of the primary barriers to seamless trade; "The Indian market remains relatively closed, especially for major commercially significant EU products," noted one senior EU official.
Addressing the technology aspect, von der Leyen also remarked, "We strive for free trade agreements, more cooperation on digital technologies... and clean technologies such as electric vehicles and green hydrogen.” This push for technological collaboration highlights the mutual interest both parties have, particularly around artificial intelligence, quantum computing, battery technology, and semiconductor manufacturing.
Such initiatives come at a time when geopolitical dynamics are shifting. The EU is not only focused on enhancing its economic ties with India but is also strategically positioning itself amid increasing tensions arising from the war between Russia and Ukraine. India, with its long-standing ties to Russia, maintains a position of neutrality, making the dialogue on the Ukraine conflict integral to the meetings. Europe is eager to garner support from India concerning its stance on the Russian invasion. An unnamed EU official asserted, "The security of Ukraine is not only a European priority but has ramifications for Indian security as well."
This aspect will play significantly during von der Leyen’s talks with Modi, with expectations of addressing the European sanctions imposed on Russia and discussing India’s compliance with such measures. The past interactions have shown India’s reluctance to align fully with Europe's stance on the crisis.
The timing of this dialogue is particularly pertinent, as the United States, under President Donald Trump, has focused on negotiating stringent tariffs with both friends and adversaries alike, putting global trade dynamics under pressure. India perceives this as both challenge and opportunity, particularly since it aspires to maintain strong ties with the US. Indian officials are reportedly reviewing custom policies comprehensively, considering possibilities for tariff reductions on imports like automobiles, chemicals, and certain agricultural products.
One of the underlying objectives of this high-level dialogue is to bolster India's economy through increased foreign investments and access to new technologies, which could significantly contribute to job creation and sustain economic growth. The Indian government is enthusiastic about integrating European technology and efficiency with its significant market size, stating, "They have the technology and efficiency, and we have the necessary scale."
Overall, this high-level dialogue serves as both test and opportunity for the relationship between India and the EU. The stakes are high—will the EU be able to shift India closer to its orbit amid the challenging geopolitical winds, or will the traditional hurdles prevent substantial cooperation? While both parties are optimistic, the path forward remains fraught with uncertainties. The upcoming discussions may well define the evolution of India-EU relations moving forward.