India, EU to upgrade ties at Delhi summit
What's the story
India and the European Union (EU) are hoping to conclude negotiations for a trade agreement ahead of the 16th EU-India Summit in New Delhi on January 27. The summit will focus on a "Free Trade" Agreement (FTA) that has been under negotiation for over two decades. The FTA talks have been complicated by issues such as agriculture, carbon border taxes, service delivery, and non-tariff barriers.
Other agreements
Summit to address defense, security partnership
Apart from the FTA, the summit will also discuss a new Defense and Security partnership, The Hindu quoted an EU official as saying. This would be only the third such comprehensive agreement the EU has signed in Asia, after Japan and South Korea. The security partnership will set a framework for future cooperation, but won't specify details on co-production deals or technology transfer.
Trade negotiations
EU officials confirm trade deal announcement
EU officials have confirmed that the trade deal will be announced at the summit and negotiations are expected to be concluded, although it won't be signed yet. "We're not talking about signature in Delhi, but we're talking about conclusion of the negotiations," another EU official was quoted as saying. A recent EU-Mercosur agreement faced similar challenges over agricultural concerns, leading to its referral to the European Court of Justice by the European Parliament.
Security dialogue
India-EU security partnership to address Russia concerns
The EU began negotiating with Mercosur's bloc of five (Brazil, Argentina, Bolivia, Paraguay, and Uruguay) in 1999, a process finally completed with the signing on January 17. The security partnership between India and the EU will also tackle differing views on Russia. European officials have acknowledged these differences, especially after India participated in Zapad 2025 military exercises in Russia and Belarus. The EU had objected to the exercise and has consistently taken issue with India's purchase of Russian crude oil.
Mobility agreement
India-EU mobility MoU to address worker movement
The summit in New Delhi will also witness the signing of a Memorandum of Understanding (MoU) on mobility. This agreement will cover the movement of highly skilled workers, students, researchers, and seasonal workers between India and EU countries. The number of people allowed into each country will be decided by individual nations.
Strategic significance
India-EU relations gain importance amid global challenges
The India-EU relationship has been strengthening for over a decade. However, recent global developments have accelerated their convergence. Both sides are now looking to move forward with the India Middle East Europe Economic (IMEC) Corridor project after delays due to the Israel-Gaza conflict. The EU's strained ties with other regions and India's trade challenges with the US under Donald Trump's administration make this summit strategically important for both parties involved.