Ursula von der Leyen’s Visit to India - Revitalizing India-EU Strategic Partnership

Context:

• The visit of European Commission President Ursula von der Leyen to India, along with the entire College of Commissioners (the European Cabinet), marks a significant moment in the evolving India-EU relationship.
• This visit gains additional importance against the backdrop of Donald Trump’s return to the White House, which has introduced fresh uncertainties in global geopolitics.

Geopolitical Context - The Trump Factor

• Trump’s policies are reshaping U.S. relations with Russia, China, and Europe.
• His approach prioritizes bilateral deals over multilateral commitments.
• Trump’s stance on Ukraine and NATO has left European nations in a vulnerable position. For example, Trump’s withdrawal of support for Ukraine has shocked Europe.
• His administration demands that European nations take full responsibility for their security.
• Washington’s ideological shift, including support for right-wing European parties (for example, Germany’s Alternative for Germany [AfD]), is reshaping internal EU politics.

India’s Strategic Calculations:

• India has historically managed global power shifts by engaging with multiple partners.
• For example, India’s strategy (until now) for managing US policy volatility has involved maintaining its ties with Russia and engaging in Moscow-led coalitions such as BRICS.
• This means, India traditionally relied on balancing ties with Russia and the US.
• With Russia seeking direct negotiations with the U.S., India must broaden its strategic partnerships and recalibrate its strategy amid shifting alliances.
• Europe emerges as a key player in India’s evolving foreign policy framework.

India-EU Relations:

• A historical perspective:
  • A strategic partnership was declared in 2004 but lost momentum by the early 2010s.
  • Trade negotiations had stalled, and Brussels prioritized commercial ties with China.
  • India revived engagement in 2016, leading to increased cooperation post-pandemic.
• Key initiatives include:
  • India-EU Trade and Technology Council
  • India-Middle East-Europe Economic Corridor (IMEC)
  • Strengthened Indo-Pacific engagement
• Economic realities and challenges:
  • India’s economic engagement with the EU remains underdeveloped despite clear synergies.
  • India’s trade deficit with China continues to widen, nearing $100 billion annually.
  • The global economic order, once assumed to be stable/irreversible, is being dismantled by Trump’s policies.
  • India must push for economic reforms and reduce dependence on Chinese imports.

Key Takeaways from Von der Leyen’s Visit:

• The visit provides Delhi with the perfect opportunity to revitalise its engagement with the EU - the world’s third-largest economy after the US and China.
• Strategic convergence between India and Europe can mitigate risks from U.S. unpredictability.
• A Free Trade Agreement (FTA) and increased bilateral trade remain priority areas.
• As the EU is a vital source of science, technology, advanced industry, capital, and a vast consumer market, strengthening cooperation in these areas is essential for India’s economic resilience.

Way Ahead Towards Strengthening India-EU Ties:

• Despite their traditional emphasis on “strategic autonomy,” both Brussels and Delhi have long relied on their partnerships with the US as the anchor of their global strategies.
• While neither can afford to disengage from the US, both India and Europe must now do more to strengthen their ties in response to Trump’s unpredictable policies.
• As India recognised Europe’s strategic value in a multipolar world, the EU also moved to “de-risk” its economic ties with China and increase its engagement in the Indo-Pacific region. 

Conclusion:

• The changing global order demands a recalibrated Indian foreign policy.
• With Europe actively seeking to reduce economic dependence on China and India looking to diversify strategic partnerships, Ursula von der Leyen’s visit presents a timely opportunity to solidify India-EU ties.
• Strengthening this partnership will enhance India’s role in an increasingly multipolar world while ensuring economic and strategic stability.

Q1. How has Donald Trump's return to the White House impacted global geopolitics, particularly in relation to India and the EU?

Ans. Trump's policies have introduced uncertainty in global alliances, prompting India and the EU to strengthen their strategic ties amid shifting U.S.-Russia-China dynamics.

Q2. What are the key initiatives undertaken to strengthen India-EU relations in recent years?

Ans. Key initiatives include the India-EU Trade and Technology Council, the India-Middle East-Europe Economic Corridor (IMEC), and enhanced Indo-Pacific engagement.

Q3. Why is Europe becoming an increasingly important strategic partner for India?

Ans. Europe provides India with economic, technological, and security cooperation opportunities, especially as India seeks to reduce dependence on China and adapt to global power shifts.

Q4. How has the Trump administration's stance on NATO and Ukraine influenced European security strategy?

Ans. Trump's withdrawal of U.S. support for Ukraine and calls for Europe to take primary responsibility for its security have forced EU nations to rethink their defense policies.

Q5. What economic challenges does India face in its trade relations with China, and how can stronger India-EU ties help address them?

Ans. India’s growing trade deficit with China, nearing $100 billion annually, necessitates diversifying trade partners, making deeper economic cooperation with Europe crucial. 

Source:IE