How India Engages With Europe
India's relationship with Europe — comprising the EU as an institutional block, bilateral relationships with France, Germany, UK, and others — is India's most underdeveloped major power relationship relative to its strategic and economic potential.
Europe is India's largest trading partner as a bloc (EU-India trade approximately €120 billion); France is India's most substantive European strategic partner (Rafale jets, Scorpène submarines, civilian nuclear cooperation, space cooperation through ISRO-CNES); Germany is India's most important industrial partner (Volkswagen, Siemens, BMW manufacturing in India; German engineering in India's green hydrogen ambitions); and the UK remains linked through the Commonwealth, the Indian diaspora, and the ongoing India-UK Free Trade Agreement negotiations.
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| Representational Image: How India Engages With Europe |
The India-EU FTA negotiations (launched 2007, suspended 2013, relaunched 2022) have been stalled by India's agricultural protections, EU's data protection requirements, and both sides' unwillingness to make market access concessions.
News sources argued that India "must engage Europe with fresh urgency" — with Europe's strategic significance increasing as the US-China competition intensifies and Europe seeks to reduce its own dependencies.
What You Need to Know
- India-France
strategic partnership: France is India's closest European security
partner; Rafale fighter jets (36 delivered, 26 more for Navy ordered
2021); Scorpène submarines (six delivered, three more under
consideration); ISRO-CNES space cooperation; civilian nuclear cooperation;
PM Modi visited France in July 2023 (Bastille Day parade with PM as chief
guest); bilateral defence and industrial roadmap signed.
- India-UK
FTA negotiations: launched January 2022; 14 rounds of negotiations as of
2025; sticking points: India's pharmaceutical and agricultural market
access; UK's demand for India to lower spirits import duties; India's
demand for enhanced work visas (professional mobility); multiple
"imminent conclusion" announcements (January 2023, October 2023,
July 2024) have not produced conclusion; post-Brexit UK sees India FTA as
a priority post-Commonwealth trade diversification.
- India-Germany
strategic partnership: Germany is India's largest European trade partner
(~€30 billion bilateral); German FDI in India manufacturing (automotive,
engineering, chemicals); India-Germany Joint Commission (longest
continuously meeting bilateral body); green hydrogen MOU (2021, Germany
seeking clean energy supply; India seeking investment); chancellor Scholz
visited India 2023.
- EU-India
Connectivity Partnership (2021): launched September 2021; covers: digital
connectivity (undersea cables, telecom infrastructure), energy
connectivity (LNG, renewable energy); transport (ports, logistics);
strategic value: European alternative to China's BRI for infrastructure
finance in developing countries; practical implementation slower than
stated ambition.
- India-European
relationship Ukraine dimension: Europe's Ukraine war engagement created
complications for India-Europe relations; EU expected India to support its
Ukraine position; India abstained on UN votes; India declined to sanction
Russia; Europe accepted India's position with varying degrees of
frustration; France (strategic partner with Russia relationship of its
own) was most understanding; Baltic states were most critical.
How It Works in Practice
1. France as India's deepest European security partner:
The Rafale deal — 36 aircraft delivered 2020–22 and an additional 26 for the
Indian Navy ordered 2021 — is India's most significant European defence
procurement; combined with Scorpène submarines, ISRO-CNES cooperation (French
satellite launch history with India), and civilian nuclear cooperation (French
Areva involvement in Jaitapur nuclear plant, stalled), France has deeper
military-strategic depth with India than any other European power.
2. The UK FTA negotiation's political economy: The
India-UK FTA's protracted negotiation reflects genuine structural differences:
India's agricultural and pharmaceutical protections are politically sacrosanct
domestically; UK's spirits industry lobbies for whisky export access that India
politically can't concede; both sides' bureaucracies are capable of obstruction
when domestic constituencies resist liberalisation. The FTA's conclusion would
be symbolically important — India's most significant Western FTA outside CEPA
with UAE — but its economic impact is second-order given the existing trade
level.
3. Europe's India strategic awakening post-Ukraine:
Europe's recognition that energy dependence on Russia, technology dependence on
China, and over-reliance on US security are strategic vulnerabilities has
increased European interest in India as a strategic partner. India's large
domestic market, manufacturing potential (India+1 strategy), and democratic
identity make it an attractive European partner for supply chain
diversification and strategic hedge. The EU-India Technology Council and
EU-India Trade and Technology Council (announced 2023) represent the
institutional framework for this potential deepening.
4. The Commonwealth dimension with the UK: The
54-nation Commonwealth provides a post-colonial institutional link between
India and the UK; India is the Commonwealth's largest economy by far
(approximately 30% of Commonwealth GDP); Modi attended the Commonwealth Heads
of Government Meeting (CHOGM); India has used Commonwealth to advance
diplomatic positions; the Commonwealth is not a major foreign policy vehicle
for India but provides network utility.
5. India's European diaspora and soft power:
Approximately 2 million Indians in the UK (the largest Indian diaspora
community in Europe); 400,000 in Germany; 100,000+ each in Netherlands, France,
Italy; the Indian diaspora's economic success (UK's first Indian-origin PM
Rishi Sunak, 2022–2024) and cultural visibility create soft power leverage for
India's European diplomatic objectives.
What People Often Misunderstand
- Europe
is India's largest trading partner as a bloc but not India's strategic
priority: India's strategic attention goes to the US, China, Pakistan,
Russia, and the Gulf — in roughly that order; Europe is strategically
important but receives proportionally less diplomatic attention than its
economic significance justifies; analysts consistently note this mismatch.
- France
and Germany have substantially different India approaches: France
emphasises the security and defence partnership; Germany emphasises trade,
climate, and industrial partnership; the UK emphasises trade, diaspora,
and post-Brexit partnership; Italy, Spain, and others have narrower
bilateral relationships; "Europe" is not a unified strategic
actor toward India.
- India-EU
FTA's conclusion is not guaranteed by relaunching negotiations: The
2022 relaunch was the third attempt; the structural obstacles (India's
agricultural protection, EU's regulatory standards convergence demands)
have not changed since the 2013 suspension; political will matters but
bureaucratic and lobby resistance has historically defeated political will
in India-EU trade negotiations.
- India's
Ukraine vote abstentions created some European trust deficit: While
most European leaders accepted India's position intellectually, India's
abstentions created emotional distance — particularly given the scale of
European assistance to Ukraine; the trust deficit is real even if it
hasn't produced policy changes.
- News
India Times' "engage Europe with fresh urgency" is a genuine
policy recommendation: The call for India to more actively cultivate
Europe as a strategic partner — not just a trade partner — reflects a
genuine gap in India's multi-alignment strategy; Europe's increasing
strategic autonomy aspiration (French "European sovereignty"
doctrine, EU Strategic Compass) creates an opening for India to engage
Europe as a pole in its own right rather than as the US-adjacent Western
bloc.
What Changes Over Time
India-UK FTA conclusion — expected but repeatedly delayed —
will be the most consequential near-term Europe development; when concluded, it
will reset the India-UK relationship as post-Brexit UK's most significant
non-US partnership. India-EU Trade and Technology Council's operationalisation
(technology and trade cooperation with the EU bloc) could become the most
important strategic framework for India's European relationships if it
translates to semiconductor, AI, and green energy cooperation at scale.
Sources and Further Reading
- CSIS
— India's future strategic choices: https://www.csis.org/analysis/indias-future-strategic-choices-complications-mass
- Khan
Global Studies — India's foreign policy: https://www.khanglobalstudies.com/blog/indias-foreign-policy-2025/
- Tribune India — Strategic autonomy: https://www.tribuneindia.com/news/bricsleadership/operation-sindoor-beyond-how-india-asserted-strategic-autonomy-amid-tariffs-security-challenges
- MEA — Annual Report 2024: https://www.mea.gov.in/annual-report.htm
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