The BRICS summit concluded in New Delhi on Sunday, with Indian prime minister Narendra Modi having hosted the two-day gathering as chair. As with many meetings of the group of emerging economies, this edition brought together the leaders of China, India and Russia and featured plenty of anti-Western rhetoric. This was also Chinese leader Xi Jinping’s first visit to India for more than six years, in the latest example of Sino-Indian normalisation following a sustained period of tensions.
New Delhi’s normalisation with Beijing over the last year looks like more of a tactical de-escalation than a realignment. Nevertheless, India has over that time begun to agree more measures to provide greater access to Chinese investment in manufacturing and climate technology, both areas important for India’s development. This should act as a warning for Europeans. If India cannot source technology and capital from partners in Europe, it will seek to do so from China even while remaining suspicious of Beijing from a security point of view.
New Delhi continues to view Beijing as a threat and seeks deeper security and economic ties with Brussels, as well as with Washington, despite the difficulties President Donald Trump presents. Modi has thus worked to prevent the BRICS from tipping into a purely anti-Western vehicle, since this would run against India’s interests.
Europeans also see India as an increasingly vital partner, following the EU-India trade deal agreed earlier this year, as Europeans diversify geopolitically in the face of tense transatlantic relations. But India’s bilateral agreements with China, including on the sidelines of the BRICS meeting, show that the EU must not take the mutual benefits of closer ties for granted.
Ahead of Modi’s anticipated visit to Brussels later this year, the EU should accelerate its plans further to strengthen Europe-India ties. For instance, it should enhance the existing Trade and Technology Council to drive cooperation in areas like AI, while also moving forward cooperation on defence and security, and making faster progress on India’s plans to join the Horizon Europe funding programme for research and innovation.
The EU and India signed a landmark free-trade agreement in New Delhi in January, alongside a new security and defence partnership. Both sides aim to build on these with wider cooperation initiatives to encourage greater cooperation and investment in areas like semiconductors, AI and clean-tech supply chains.
India supported moves at the 2023 BRICS summit to agree on a major membership expansion. The group began as a much smaller coalition of just Brazil, Russia, India and China, and South Africa—hence “BRICS”—but has since grown to eleven members, including Egypt, Ethiopia, Iran, Saudi Arabia and the UAE as well as a wider grouping of observer and partner countries that attend summits and align themselves loosely with the bloc’s agenda. The group is internally divided, and not just in terms of China and India. Both Iran and the UAE are members, for instance, despite longstanding regional tensions. This year’s summit produced a limited declaration including vague promises to enhance cooperation.
On 11 September, the European Commission has put forward its proposals to the Council for the signature and conclusion of Free Trade Agreement (FTA) between the European Union and India, seeking authorization for its signature and conclusion. If authorized by the Council, this will be the largest trade agreement ever concluded by both the EU and India.
Once adopted and entered into force, the agreement will improve market access, reduce tariffs, tackle unnecessary barriers to trade, as well as provide predictable rules for trade and investment between the EU and India. The EU and India already trade over €180 billion worth of goods and services per year, supporting close to 800,000 EU jobs. This deal will eliminate or reduce tariffs on 96% of EU goods exports to India. Overall, the tariff reductions will save around €4 billion per year in duties on European products. It will make it easier for European companies to access the Indian market and compete on a more level playing field, while it will ensure consumers can benefit from increased choices and more competitive prices.
The proposal put forward today represents a key step towards ensuring that consumers and businesses can start reaping the benefits of this deal as soon as possible. This is in line with the fast-track procedure laid out by Commissioner for Trade and Economic Security, Maroš Šefčovič earlier this year. The procedure aims at speeding up the implementation of FTA's, which is crucial at a time of geopolitical uncertainty and growing pressure on the global trading system.
The EU-India FTA reflects the EU's commitment to strengthen economic ties with key partners in the Indo-Pacific region. With its proposals, the Commission is seeking Council's approval to sign the agreements which will then require European Parliament's consent, before conclusion and entry into force. The Indian authorities are in parallel going through their own internal ratification procedures.
For more information
THE HAGUE: The Permanent Court of Arbitration has ordered India to uphold the Indus Waters Treaty with Pakistan and suspend work on its hydroelectric projects, a major legal victory for Islamabad in the dispute over the agreement. The Hague-based tribunal issued the award on the status of the treaty and interim measures concerning India’s Ratle ... Read more
The post Hague tribunal orders India to suspend Indus River projects, uphold treaty with Pakistan appeared first on BOL News.
Login