As the second EU-India Trade and Technology Council (TTC) draws near, there is optimism in Brussels and New Delhi that a clear path can be found for a relationship often described as underdeveloped.
The TTC meeting in New Delhi on 28 February will mark the first major trip of Ursula von der Leyen’s full team.
While the EU has a TTC mechanism in place with only the United States and India, the mechanism itself has yet to make significant progress, argues the Institute of South Asian Studies (ISAS) in a new analysis.
The ISAS takes issue with the real potential for cooperation in practical terms, even though both sides share strategic motivations.
Less China, less Russia
Reducing reliance on China and Russia and promoting a multipolar world are aims shared by the EU and India. While Europe seeks to collaborate with like-minded partners, India looks for strategic autonomy and diversified partnerships.
Normative differences in digital governance, trade disputes over market access and tariffs, and India’s scepticism towards the EU’s environmental tax policies create hurdles, notes the ISAS report.
The TTC also remains limited to government-level discussions without meaningful engagement from the private sector, which is essential for progress in key areas like semiconductors, green energy, and artificial intelligence (AI).
Modest expectations
Expectations from India’s side are modest, and without concrete actions to address these obstacles, the TTC risks remaining a platform of untapped potential rather than a driver of real progress.
To succeed, both sides must leverage their strategic alignment to overcome regulatory differences, expand participation beyond governments, and initiate joint technology projects that can bridge gaps and foster deeper collaboration.
Learning from India
However, the European Digital SME Alliance sees the TTC as a crucial platform for collaboration in getting Europe to learn from India’s Digital Public Infrastructure (DPI) model, particularly the India Stack.
In a recent op-ed, Secretary General Sebastiano Toffaletti argues that Europe’s digital transformation could benefit from the principles India applies, to transform access to financial and social services.
Europe has been exploring its own version of a digital infrastructure, the “EuroStack”. Similarly to India Stack, it would integrate digital identity, secure payments, and data governance while also addressing sovereignty and security concerns in the digital supply chain.
Key lessons from India’s model include interoperability, public-private collaboration, large-scale adoption, inclusivity, data governance, and cost efficiency through open-source solutions.
Resilient digital ecosystem
These elements, argues Toggaletti, could help Europe reduce its reliance on foreign tech providers and build a more resilient digital ecosystem. Reducing dependencies on US and Chinese tech providers while promoting supply chain diversification is a shared goal.
By adapting India’s approach to Europe’s unique context, the EU can enhance its digital resilience and technological leadership while fostering deeper cooperation with India, concludes the op-ed.
With Donald Trump steering the White House away from Europe, and with the Brussels-Beijing relations in cold water, the EU understands it must act sooner rather than later, and forge closer cooperation with what it considers “like-minded partners”.
India, as the world’s fifth-largest economy and most populous nation, has ambitious plans to boost manufacturing and exports while engaging globally through multilateral partnerships, says the Centre for European Reform (CER).
A fresh round of talks on a proposed free trade agreement (FTA) are scheduled for March, shortly after the von der Leyen team visit. FTA talks are also set to pick up with the United Kingdom towards the end of February.
But the relation has potential beyond trade, with possible room for collaboration in technology, climate change, education, defence, and green energy, as India’s ambitions align with EU priorities.
With shared economic and strategic interests, both sides should seize upcoming diplomatic opportunities, including von der Leyen’s visit and the roadmap negotiation, to solidify a stronger partnership in a rapidly shifting global landscape.
[Edited By Brian Maguire | Euractiv’s Advocacy Lab ]
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