While China is more important for the EU from an economic perspective, politically India is closer to the 27-member bloc
India established diplomatic relations with the European Economic Community (EEC) in 1962, and from the beginning, it remained cordial. The EEC was incorporated into the European Union (EU) after signing the Maastricht Treaty in 1992. In the initial years, the relationship was mostly characterised as a development partnership. The EEC funded several noteworthy projects in India, like India’s dairy development programme ‘operation flood’.
Being a developing country, India also received trade concessions from the EEC. Still, this strong development partnership did not add much to political relations, which remained dormant. However, post-1990s, there has been a noticeable rise in the India-EU political ties. In 1994, the India-EU cooperation agreement laid a legal foundation for collaborations on political issues. The India-EU ties received a further boost in 2004 when during the 5th India-EU summit, the two sides decided to enhance their relationship by becoming strategic partners.
Theoretically, both India and the EU stand for a multilateral rules-based international order. Thus, when the two entered into a strategic partnership, it kindled hope that India and the EU would closely work on issues of mutual interest, albeit there are fewer examples to prove this. One of the reasons was the EU’s hesitancy to get engaged in international power politics. The EU has an image of ‘civilian power’ and not of hard power in international relations.
However, several changes in Europe and beyond necessitate the EU’s active involvement in world politics. Things like terrorist strikes in Europe, the decline of the US and China’s aggressive posturing leave little space for the EU to remain a passive international player.
On the other hand, since last year, India saw China’s belligerence at the Line of Actual Control. India realised that robust trade ties with China do not necessarily translate into a strong political friendship. New Delhi is wary of China’s future moves and is willing to invest in building reliable partnerships. Interestingly, in the last couple of years, we have seen some positive movements in the India-EU relation that is interpreted by a few as an alliance in the making, particularly in the context of China. Let us study some of the recent developments on the India-EU political front to assess if it is really directed against a country.
In 2020, during the 15th India-EU summit, the two sides adopted ‘India-EU partnership: a roadmap to 2025’. This roadmap covered pertinent themes of India-EU ties. It enlisted the need for collaboration on ‘foreign policy and security issues of common interest’. It underlines the relevance of military to military cooperation and implementation of a mechanism for intelligence sharing.
The roadmap to 2025 emphasised cooperation in the Indo-Pacific to ‘enhance convergence and work together to maintain peace, stability, safety and security’. Both sides also agreed to ‘promote connectivity based on international norms and key guiding principles of social, economic, fiscal and environmental sustainability’.
Just before the 16th India-EU summit, in April 2021, the EU announced its Indo-Pacific strategy. The Indo-Pacific is a geopolitical construct primarily aimed to counter China’s domination. According to the EU, ‘it intends to reinforce its role as a cooperative partner in the region’. In addition, the strategy accepted intense competition in the Indo-Pacific, and it can have an impact on the EU’s interest.
The 16th India-EU summit held on May 8, 2021, captured the attention of many because of certain key outcomes. The joint statement issued by the two sides after the conclusion of the summit referred to the ‘roadmap to 2025’ and made it clear that things are moving on a conceived path. This is evident as the 16th summit also endorsed the India-EU agreement on connectivity partnership. As per the document, the connectivity partnership will ‘support sustainable digital, transport and energy networks’. Some experts also view the India-EU connectivity partnership as a well-thought-out plan to match China’s Belt and Road Initiative.
Interestingly, none of these India-EU documents has direct reference to China, but there is an undercurrent. Recently there has been tension between the EU and China on human rights violations in Hong Kong and Xinjiang. For the first time in so many years, political positions have a repercussion on the EU-China economic ties. The EU has recently suspended the ratification of the much-discussed EU-China Comprehensive Agreement on Investment (CAI). The CAI was negotiated for almost seven years and was principally agreed only in December 2020. Undoubtedly human rights issues are a bone of contention; still, it is advisable not to draw a conclusion in haste.
The EU-China trade per day is more than 1 billion Euro. In comparison, the India-EU trade is around 100 billion Euro per year. So China is much more important for the EU from an economic perspective. But this equation changes when we judge from a political side. Politically India is closer to the EU. Interestingly, India and the EU agreed to restart negotiations on trade and investment agreements, but it is easier said than done. There are domestic issues that India cannot afford to ignore while discussing a trade and investment deal with the EU.
The India-EU relation has matured over the years and has a strong foundation. What is essential is to work together on issues of mutual interests. In the past, India-EU rarely worked jointly on an international issue. Certainly, there is a potential to improve the trade ties, and it shall be a priority.
Regarding China, there are some convergences but better not to ignore the economic connections. Both India and the EU have substantial trade with China and may not wish to hamper it, particularly when Covid-19 is adversely impacting the international economy. Nonetheless, much will depend on how China projects itself politically and diplomatically. At present, China is perceived as exhibiting aggression in world politics. Lastly, India and the EU relation is not dependent on China, and in all likelihood, it will grow in the future.
(The author is Senior Assistant Professor, Department of International Relations, South Asian University, New Delhi)
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