PYQ Relevance[UPSC 2021] “The foreign policy of India has changed from ‘non-alignment’ to ‘multi-alignment’ in recent times.”Examine. Linkage: India’s deepening engagement with diverse partners such as the EU alongside the U.S., Russia, and groupings like QUAD reflects a shift from ideological non-alignment to pragmatic multi-alignment driven by strategic autonomy. |
Mentor’s Comment
As global alliances weaken due to geopolitical tensions, the India–European Union relationship is reaching a crucial turning point. With the highest EU leadership visiting India for the first time together, the partnership is being repositioned from episodic engagement to strategic alignment. This article analyses why the moment is consequential, what is at stake in trade, defence, and climate negotiations, and how the India-EU partnership could shape a new template for strategic autonomy in a polarised world.
Why in the News
The President of the European Commission and the President of the European Council are jointly visiting India for India’s 77th Republic Day and co-chairing the 16th India-EU Summit. The opportunity is large, as talks on a long-pending Free Trade Agreement, defence cooperation, and climate-related trade rules are reaching a critical stage.
Why has the India-EU partnership gained urgency now?
- Geopolitical fragmentation: Undermines reliability of traditional alliances and compels diversification of strategic partnerships.
- U.S. unpredictability: Creates uncertainty for both India and Europe amid tariff pressures and transactional diplomacy.
- China’s assertiveness: Forces recalibration of economic and security dependencies across Eurasia.
- Strategic autonomy: Aligns India’s non-aligned pragmatism with Europe’s reassessment of over-dependence on major powers.
What makes this engagement different from earlier India-EU summits?
- Leadership convergence: Joint presence of EU’s top executive and political leadership signals institutional commitment.
- Summit co-chairing: Reflects intent to move beyond symbolism towards outcome-driven engagement.
- Timing: Coincides with stalled global governance mechanisms and weakened multilateral trust.
- Intent alignment: Demonstrates mutual recognition that episodic engagement is no longer sufficient.
What is at stake in the India-EU Free Trade Agreement (FTA)?
- Negotiation maturity: Talks in final stages after repeated stalling since 2007.
- Textiles and apparel: Enables tariff reductions to boost India’s exports to Europe.
- Pharmaceuticals and chemicals: Leverages India’s competitive manufacturing advantage.
- Automobiles and machinery: Expands European access to India’s growing market.
- IT and digital services: Facilitates gains through regulatory harmonisation for India’s IT sector.
- Economic insurance: Acts as a hedge against trade disruptions and geopolitical shocks.
How does climate policy complicate trade cooperation?
- Carbon Border Adjustment Mechanism (CBAM): Imposes effective 20-35% carbon charges on Indian exports such as steel, aluminium, cement, and fertilisers.
- Non-tariff barrier risk: Erodes potential gains from the FTA if left unaddressed.
- Climate equity: Raises concerns over fairness for developing economies with lower historical emissions.
- Policy balance: Requires Europe to provide transitional relief while retaining climate ambition.
Why is defence cooperation emerging as a critical pillar?
- Security and Defence Partnership: Proposed by EU leadership to expand strategic engagement.
- Market access: Opens European defence markets to Indian manufacturers.
- Co-production: Aligns with India’s ‘Make in India’ initiative for defence manufacturing.
- Technology transfer: Enhances India’s access to advanced European defence technologies.
- Maritime coordination: Supports joint exercises and cooperation in the Indian Ocean.
How does this partnership offer a model for global order?
- Respect for sovereignty: Rejects dominance by Beijing, Moscow, or Washington over strategic choices.
- Strategic autonomy: Emphasises flexibility and reduced over-dependence on single partners.
- Domestic sensitivities: Balances global cooperation with internal political realities.
- Multilateral renewal: Positions India and the EU to shape credible alternatives in global governance.
Conclusion
The India-EU partnership is at a critical juncture. Shared concerns over global instability and strategic dependence have created momentum for deeper cooperation. Sustaining progress on trade, climate, and defence could turn intent into outcomes; failure would repeat past stagnation.
Get an IAS/IPS ranker as your 1: 1 personal mentor for UPSC 2024
