The European pivot to India

During 2025, when the relations of Europe (i.e., of the European Union and the UK) with the U.S., as well as India-U.S. relations, came under severe strain, it was no coincidence that the two affected parties – Europe and India – found a raison d’être to strive harder to redesign their strategic partnership. The Donald Trump administration’s singular contribution these past months has been to accelerate this process, providing it with a continuing momentum. As a result, India-Europe ties have been re-energised and are now set to reach new heights, while overcoming past hesitations and divergences.

This clear trend has been reflected in the successful visits to India by the UK Prime Minister Keir Starmer and the German Chancellor Friedrich Merz in October 2025 and January 2026, respectively, and it will continue with the French President Emmanuel Macron’s visit to Delhi in February 2026. But nothing appealed to the popular imagination, especially in India, more than the visit of the European Union duo, António Costa, President of the European Council, and Ursula von der Leyen, President of the European Commission, as chief guests at India’s Republic Day celebrations on January 26, 2026. The visiting leaders recognized it as a special honour, and indeed it was. India rarely invites leaders of a regional grouping to the Republic Day celebration. Only once before was this done, in 2022, when 10 ASEAN leaders were accorded the privilege.

The spectacle of President Costa and President von der Leyen travelling with India’s President Droupadi Murmu in the ceremonial buggy down the Kartavya Path, then being received warmly by Prime Minister Narendra Modi, illustrated the sharply increased significance of the EU in India’s foreign policy calculus.

India-EU relations have come a long way, reflecting deeper maturity and shared willingness to enlarge convergences while working around divergences. Over four decades ago, a diplomat^[1]at the Indian Mission to the EU in Brussels would have found that political and diplomatic cooperation more enduring in the India-EU relationship. The process of adding trade and economic issues gained momentum from the early 21^st century, reaching a critical landmark in February 2025 when the Commission President Ursula von der Leyen and all the commissioners paid a rare visit to India to advance the cause of the strategic partnership.

Over the past few years, this partnership has been sustained through a mix of key initiatives, including the Trade and Technology Council (TTC), the Global Gateway, and the India-Middle East-Europe Economic Corridor (IMEC). The TTC was launched in February 2023. Under the Global Gateway, the two parties are busy promoting deep cooperation in areas ranging from urban development and green energy to digital transformation and trade. IMEC is viewed as a geopolitical vehicle for synergy, connectivity, and inclusive prosperity

A close look at the tangible outcomes of the EU leaders’ visit is essential to appreciate its historic importance. There are six important outcomes.

One, the text of the Free Trade Agreement (FTA) has been finalised and agreed upon, and a confirmatory political declaration has been signed by the commerce ministers of India and their EU counterparts. After legal scrubbing and ratification, it is expected to come into force in late 2026. It will eliminate duties on 99.5% of Indian exports, including textiles and apparel, gems, leather, and footwear – textiles being particularly important as it has suffered disproportionately from the 50% U.S. tariff imposition on India. The FTA will reduce tariffs on 97% of European imports into India, such as high-end cars and wines. It will cut annual tariffs by up to 4 billion euros for exporters and create enormous job opportunities both in India and Europe.

This FTA has been widely hailed as “the mother of all trade deals” as it creates a relatively free market of 2 billion people. It reflects a measured balance of give-and-take and mutual respect for each other’s sensitivity. More importantly, as Kaja Kallas, Vice President of the EU Commission, noted, “It also provides a chance to reduce reliance on China, Russia, and the U.S.”

Two, a security and defence partnership agreement has been signed covering strategic dialogue, maritime security, cyber issues, hybrid threats, and protection of critical infrastructure. Defence industry-related cooperation will also be promoted, although national competencies in this domain remain applicable. With this, India has become the EU’s third such defence partner, after Japan and South Korea.

Three, it was agreed to begin negotiations on a Security of Information Agreement, which will facilitate broader exchange and the security of classified information between the two sides. This decision reflects increased mutual trust between the two sides.

Four, a Mobility Pact has been signed, ensuring that more Indian students, researchers, seasonal workers, and professionals will be able to visit and work in the European countries in the future. The endeavour will be to combine European technology with India’s skilled workforce to derive optimal benefits for both parties.

Five, ‘Towards 2030: A Joint India-European Union Comprehensive Strategic Agenda’ has been endorsed at the 16^th India-EU summit on January 27. This reinforces the strategic partnership. Besides trade and investment, it highlights strengthening supply chains and economic security, technology and innovation, development cooperation, expanding skills mobility, and reinforcing institutional architecture as critical means to deepen cooperation further over the next five years.

Six, a 28-paragraph Joint Statement on the state visit of the European duo has been issued. Its contents, especially those relating to regional and multilateral cooperation, will underscore the importance they attach to the UN, the WTO, the G20, and the reform of the Security Council at a time when multilateralism is viewed as being in regression.

It is no secret that both India and the EU have been deeply concerned about the serious blows to the ‘rules-based order’ delivered by the great powers, such as the U.S., China, and Russia, in recent years. Moving beyond the stage of articulating their concerns, the two parties – rising powers both – have decided to proceed with some concrete action to solidify their bilateral cooperation and show that there is indeed another way to run the world. This was the real significance of the European pivot to India and the latter’s optimal reciprocity.

As the second and fourth-largest economies in the world, the EU and India have joined hands, and this is a development of global consequence. The EU’s support for India matters a great deal. As EU Commission President Leyen noted, “A successful India makes the world more stable, prosperous, and secure.”

Rajiv Bhatia is the Distinguished Fellow for Foreign Policy Studies and a former ambassador.

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References:

[1] The author served as first secretary in the Indian Mission to EC/EU in Brussels from 1982-85.