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UNI Special: Guns, Trade and Trust: India, EU head towards strategic reset

UNI Special: Guns, Trade and Trust: India, EU head towards strategic reset

Jayanta Roy Chowdhury
New Delhi, Jan 26 (UNI) As India steps gingerly into the reality of the 21st century’s multi-polar global order, the country’s military might was on display Monday before the heads of a potential new security ally – European Council President Antonio Costa and European Commission President Ursula von der Leyen.
Even as India and the EU remain locked in last-minute bargaining to wrap up a long-delayed free trade pact, which now may include drastic slashing of Indian customs duties on imported high-end cars subjects to caps, the two sides are also looking at strengthening collaboration in security and defence, through a ‘Security and Defence Partnership’ this week.
Top officials said the two sides were working for “closer engagements in maritime security, especially in the Indo-Pacific area, non-proliferation and disarmament, space, counter-terrorism, and countering cyber and hybrid threats.”
“The European union now regards India as a valuable ally in the new world order or disorder which has come about,” Bhaswati Mukherjee, former Indian Ambassador to the European union told UNI.
Earlier this month, the European union had suspended its ratification of the US-European union trade pact in protest over US pressure to acquire Greenland. While American President Donald Trump’s U-turn on taking control of Greenland has eased tensions, the trust between the two staunch allies has taken a body blow.
However, the FTA with India is now “almost complete” in the words of a top commerce ministry official, who confirmed India is willing to more than halve duties from a current 70-110 per cent on petrol and diesel driven automobiles costing more than Euro 15,000 (approximately Rs 16 lakh) subject to a cap on the numbers that can be shipped in.
In time, this duty cut could be deepened, the official said, adding that battery-operated vehicles will be kept off this deal for five years to “protect the nascent electric vehicle industry in India”.
The twining between India and the EU is also expected to “boost defence industrial collaboration”, with Indian manufacturers co-producing defence systems and selling their innovations as India continues its defence trade with traditional European partners – France, Germany, Spain and Italy.
From ‘Suryastra’ surface-to-surface missile launchers to indigenously manufactured unmanned aerial vehicle ZOLT, India’s military innovations, were on show at Monday’s 77th Republic Day parade, which Costa and der Leyen watched with President Droupadi Murmu and Prime Minister Narendra Modi from the dais.
“EU was always obsessed with soft power, which they held could resolve issues… however, in today’s world that doesn’t work anymore and they need to build up military capabilities, which were allowed to wither,” said Mukherjee, who has authored a seminal work - India and EU - An Insider's view.
As Europe accelerates rearmament of its defence forces in response to Russia’s war in Ukraine and questions on the durability of American security guarantees, India, which has for decades been a buyer of European arms – ranging from Mirages to Scorpene submarines -- has emerged as a key supplier of munitions.
Between 2022 and 2024, Indian defence exports to the European union exceeded USD 135 million. Indian state-run and privately owned companies deepened ties with European manufacturers. Domestic giants -- Reliance, Tata, Bharat Forge and Mahindra -- have struck partnerships with Dassault, Airbus and Rheinmetall, bringing artillery, transport aircraft and advanced aerospace components into India.
Top officials said the collaboration will extend to joint patrolling of the global oceanic commons. India and the European union Naval Task Force (EUNAVFOR) have already done anti-piracy operations in the Red Sea.
While India has also joined hands with France, which has significant island territories in the south-western Indian Ocean, in naval exercises.
France also has French Polynesia in the Pacific Ocean and “both oceans are of great commercial and strategic interests to European nations, and they will have to beef up their presence significantly in these areas as the US has made it clear that it cannot be the net security guarantor for Europe for all times, ” said officials.
India has a tradition of inviting foreign heads of state to witness the parade, choosing the dignitary to signal strategic intent. Indonesia’s President Prabowo Subianto, an ally in India’s quest to keep the Indian Ocean and the South China Sea routes safe, was the chief guest last year.
French President Emmanuel Macron came two years back as New Delhi and Paris intensified naval and defence industrial cooperation, while former US President Barack Obama attended in 2015, the year when India signed a new 10-year Framework for US-India Defence Relationship pact.
The European Council, which already has counterterrorism cooperation with India, wants the ties between Europol and the Central Bureau of Investigation to be intensified as both feel the heat from a rising threat of global militancy.
“Cooperation on counter-terrorism, especially intel sharing, is very important for both. India itself saw two major terror events last year. Radical groups are re-organising in South Asia, West Asia, and even Europe, and this is of concern to us all,” said Shantanu Mukharji, former IPS officer and ex-National Security Advisor to Mauritius.
Significantly, the EU wants to sign a Security of Information Agreement to “facilitate the exchange of classified information and stronger cooperation in security and defence areas”, which in time could “lead to India’s participation in EU security and defence initiatives”. UNI JRC AAB

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