EU-India Strategic Partnership
European Commission President visit to India signifies a critical phase in the EU-India strategic partnership amidst global political shifts instigated by Donald Trump's return to the White House.
- Von der Leyen chose India as her first international destination in her second term, highlighting the urgency of deepening ties.
- Both Europe and India, while valuing "strategic autonomy," have relied on the US but now must strengthen bilateral ties due to Trump's unpredictable policies.
Global Power Dynamics
Trump's approach to international relations, particularly concerning Ukraine, Russia, and China, is altering the global power balance.
- India traditionally managed US policy volatility by maintaining ties with Russia and participating in coalitions like BRICS.
- There is a potential shift in alliances, with India needing to diversify its strategic partnerships, including with Europe.
EU-India Relations: Past and Present
Despite their strategic partnership since 2004, India-EU relations had stagnated until recent years.
- Trade talks had stalled, and the EU seemed more focused on China.
- Efforts to reinvigorate the partnership began in 2016, with resumed trade negotiations and new initiatives like the Trade and Technology Council in 2022.
- The announcement of the India-Middle East-Europe Economic Corridor (IMEC) at the 2023 G20 Summit marks a significant step.
Changing Transatlantic Relations
Trump's policies are reshaping transatlantic relations and impacting European politics.
- US withdrawal of support for Ukraine and direct talks with Russia exclude European involvement.
- Prominent changes in European politics demonstrate a shift away from traditional US alliances, as seen in Germany's CDU party's stance.
India's Economic Strategy
India must navigate its economic challenges, including a trade deficit with China, amid changing global economic orders.
- India's trade deficit with China is nearing $100 billion annually, necessitating decisive economic reforms and strategic partnerships.
- Renewing ties with Europe could address these economic challenges and strengthen the bilateral partnership.
