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Overcoming differences: On India’s new push for stronger ties with Europe (UPSC Current Affair)

Relevance: GS2 - Groupings & Agreements Involving India and/or Affecting India's Interests

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Why in the news?

  • Prime Minister Narendra Modi recently visited France along with Germany and Denmark (for the India Nordic Summit).
  • The visit resulted in a comprehensive debate on bilateral, regional, and international problems, culminating in a joint statement from India and France.

What were the key highlights of the tour?

  • India - Germany: The two countries' partnership has been reaffirmed in Germany. In addition, Germany has announced a €10 billion investment in bilateral collaboration.
  • India and Germany also shared information on their future phase of collaboration. Germany has described India as its "Central Partner" in the Indo-Pacific region, with strong cooperation expected to continue.
  • Denmark: In Copenhagen, PM Modi attended the 2nd Edition of the India-Nordic Summit with leaders of Denmark, Norway, Sweden, Finland, and Iceland.
  • India - France: Prime Minister Modi held talks with French President Emmanuel Macron in Paris, who was recently re-elected as president.
  • Both sides comprehensively discussed issues of Ukraine, the Indo-Pacific Region, and Afghanistan and agreed to extend the strategic cooperation in areas of defense, space, nuclear energy, and climate change.

What is the history of India-France relations?

  • India and France have had an unusually fruitful connection for decades. Both have six-decade space cooperation as well as a strong defense partnership.
  • France did neither judge or censure India for its nuclear experiments in 1998. After the NSG issued a waiver enabling India access to nuclear fuel and technology, it was the first country to sign a civil nuclear deal with India in 2008. Both have a six-decade space collaboration as well as a strong defense partnership.
  • India and France collaborated intensively to ensure the Paris Climate Agreement's success. In 2015, they co-founded the International Solar Alliance.

What have been the major highlights in the India-France joint statement?

  • On the Ukraine Issue: The differences in the Ukraine crisis were noted in the joint statement. It contained suggestions for reducing the war's "knock-on" effects.
  • On Food Security: India has been invited to join France's Food and Agriculture Resilience Mission (FARM). In terms of wheat exports, the effort assures food security in the most vulnerable countries.
  • On Industrial Cooperations: Discussions are underway to form industrial alliances to construct integrated solar energy supply chains for markets in Europe and Asia.
  • On Energy: After more than 12 years of negotiations with the French corporation EDF, there have been some progress in the construction of six nuclear power plants in Maharashtra's Jaitapur.
  • Others: Both have started a bilateral strategic engagement on space issues, which has been a point of friction between China, Russia, and the US.

In the context of the ongoing Russian invasion of Ukraine, India’s relation with the EU in particular and with Continental powers in Europe like Germany and France needs to be focused.

What are the main challenges to India and the EU in Bilateral Relations?

  • The invasion of Ukraine by Russia has created questions about the post-Cold War security structure in Europe. However, The West is disappointed with India’s position in this regard.
  • Despite this, there are differences in the agenda of the EU and individual European countries. This split has long been a source of contention for India. Individual countries cannot exchange bilateral market access for bilateral defense agreements with India.
  • The European Union is not likely to settle a Free Trade agreement (FTA) with India for a “tariff-only” trade agreement having excluded labor, environment, and social issues.
  • In short, Europe worries about Russia and other competitors, in the same way, India worries about China.
  • Apart from promising to stand up to China and reduce reliance on Russia, it is unclear how much and what India can provide Europe on its own. This cannot be the foundation for a new strategic partnership.
  • Earlier, the Cold War shaped India's relations with the continental European powers. As a result, the resurfacing of traditional East-West tensions will cast a shadow over India's relations with the EU.

What is the way forward?

  • In the economic realm, the EU and G7 can de-risk, if not decouple, from an Aggressive China.
  • The Middle powers like France, Germany, India, Japan, South Africa, and Indonesia need to pool their "strength and stability" to ensure "peace and tranquility" in their respective areas.
  • It will also put some discipline on the three Superpowers: USA, China, and Russia, preventing them from defining global geopolitical and geoeconomic agendas recklessly and unilaterally.
  • India should keep looking for a global climate that supports its economic progress. It should seek to ensure that the world recognizes its contribution to humanity as a civilization.
  • Both India and EU members need to better understand each other's security concerns. For example, The European Union is concerned about Russian aggression in Europe, while India is concerned about aggressive China in Asia.
  • India should boost talks on the India-EU Free Trade Agreement in addition to boosting relations with individual countries (suspended since 2013).

Some Important FAQs

Question: What is the status of India-Germany trade relations?

Answer 

In Europe, Germany is India's greatest trading partner. Germany is India's eighth largest foreign direct investor (FDI). FDI from Germany to India totaled roughly US$5.2 billion from 2000 to 2012, accounting for about 3% of overall FDI to India. In recent years, Indian investments in Germany have increased dramatically.

Question: What is the India Nordic Summit?

Answer:

It is a bilateral forum of India with Nordic Countries which consists of Denmark, Norway, Sweden, Iceland, and Finland. 2022 is the 2nd edition of the India- Nordic Summit held in Copenhagen. The first edition of the summit was held in 2018 in New Delhi.

Question: Does India have an FTA with the EU?

Answer:

the India-EU FTA talks,the Broad-Based Trade and Investment Agreement(BTIA), as it is officially called started in 2007, but were put on hold in 2014 following differences over sensitive non-trade issues like environment and labour standards, since then both parties are making progress to finalise the BTIA agreement as soon as possible.

*The article might have information for the previous academic years, please refer the official website of the exam.
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