Q1) The latent potential of the India-EU strategic partnership is deterred due to a slew of factors. Elaborate.

(250 words/15 Marks)

ANS

India-EU relationship has evolved over the years. EU is India’s third-largest trading partner and second-largest export destination. The bilateral relationship is getting more wide-ranging through collaborations in various arenas such as economy, security, sustainable development etc.

The latent potential of India-EU bilateral relationship can be seen in the following ways:

1. India–EU cooperation in green technology can help India achieve its COP26 target of 500 GW non-fossil fuel energy capacity by 2030.
2. India and EU have complementary demographics of working-age (India) and ageing-population (EU). Service-sector can be a mutually beneficial sector for growth, including tourism, education etc.
3. There is convergence of strategic interests on Indo-Pacific and the China factor. E.g., the ‘connectivity partnership’ between India and EU for sustainable infrastructure development projects, EU’s Strategy for Cooperation in the Indo-pacific.
4. Similarity of values like democracy, human rights, environment protection, pluralism etc. can be the basis for better people-to-people ties and inter-governmental cooperation. E.g., on smart cities and urban governance.
5. Strategic autonomy is cherished foreign policy principle of both India and EU. Both can collaborate to bring in reformed multilateralism for the emerging multi-polar world.

Despite growing convergence in bilateral relationship, the latent potential of India-EU ties remains deterred due to following factors:

1. The Bilateral Trade and Investment Agreement (BTIA) between India and EU is pending since 2007. Issues like dispute settlement mechanism for investments and Sanitary and Phytosanitary (SPS) measures have undermined trade and investment potential.
2. India and EU have different assessments of regional strategic issues. There is also divergence within EU due to diverse range of countries such as on Rouble-mechanism for trade with Russia.
3. Eurocentricity about issues like supply chain disruptions in medicines and European insularity on matters like Chinese incursions in Himalayas or terrorism in Kashmir create divergence between India and EU.
4. There is historical divide between India and the West, including western Europe, due to cold war bloc politics. E.g., divergence between India’s views and the western consensus over Ukraine crisis.
5. Climate-cooperation has been undermined due to varying views on principles like Common-But-Differentiated Responsibility such as on India’s emphasis on phasedown approach for Coal instead of phase out. E.g., diverging views regarding phasing out at COP-28.

To overcome the issues limiting the potential of India-EU relations, following measures can be adopted:

1. India-EU dialogue should be expanded into areas of strategic engagement. E.g., ‘2+2 mechanism’ for convergence on foreign policy and security issues.
2. A strategic leap-of-faith on trade relations is needed to overcome friction points. Limited trade agreements or sectoral agreements can also be pursued to break the deadlock on trade negotiations.
3. Joint development projects need to be pursued for effective transfer-of-technology related on clean-coal-technologies like gasification, nuclear power etc.
4. There is need for cooperation on emerging concerns like regulation of Big Technology platforms through synchronisation of regulations such as with EU’s Digital Markets Act.
5. EU needs to be brought on board for setting up and promoting International Arbitration Centers in India for alleviating concerns related to European investments.

A strong India-EU partnership based on economic, defence, strategic and people-to-people ties is imperative for a multipolar world. Recent developments like ‘India-EU Trade and Technology Council’ for ooperation on advanced technologies like 5G and artificial intelligence promise to overcome hindrances of past.