Why EU is India's important trade partner: S Jaishankar explains

India’s economic comeback and credentials are matched by our geopolitical weight, deriving from a strategic location in the Indo-Pacific region and an increasing defense and first responder capability, S Jaishankar

India and the EU believe in a multi-polar global order, share a commitment to promoting effective multilateralism and are increasingly considerate to each other's geopolitical, economic, strategic and security concerns, External Affairs Minister S Jaishankar said on Tuesday.

Speaking at the inaugural edition of the India - Europe Business & Sustainability Conclave, he said that visits and exchanges at the highest level are today a regular feature between India and Europe, including at the Prime Minister's level. "I have personally interacted with the Foreign Ministers of all the 27 EU Member States and the High Representative of the European Commission at least once last year. I have also met some of them actually multiple times, a good example is there on the dais. These interactions have contributed to the resumption of the India-EU FTA negotiations, the India-EU Trade and Technology Council, which we call the TTC, the announcement of that, dialogues in the areas of security and defense, and human rights, and not least, a jump in bilateral trade," a statement from the Ministry of External Affairs quoted him as saying.

EU is India's Important Partner

The Union Minister said that the EU is one of India's largest and most important trade partner and the bilateral trade was in excess of US$ 115 billion in the FY 2021-22, which is the highest ever. He added, "With the UK and other non-EU countries added, I believe that the number is even greater. We expect the India-EU FTA will be a game-changer for the India-EU relationship. We look forward to a mutually beneficial, mutually advantageous conclusion to the negotiation process within a reasonably short planned timeline."

India's large and growing middle-class population makes it a preferred investment destination as well as a lucrative market for our trade partners and India is expected to be the only major economy to keep growing at well above 6% per annum in the foreseeable future, and thus will remain one of the major growth engines of the world, the EAM added.

Future of India-EU Partnership

Taking about the future of India and the EU partnership, S Jaishankar said, "It is a subject on which you can see that the government has invested a lot of resources and attention in recent years. And I share the hopes of Minister Rasmussen and Minister Lipavský that we will see much more progress in the days ahead. Many of you would have read terms like- 'The fastest growing major economy'; 'Well placed to negotiate global headwinds'; 'One of the world's largest markets'; or even 'Home to a youthful and growing quality workforce' ... these are actually today descriptions that we hear in Europe about India,"

He then spoke about several structural economic reforms taken by Prime Minister Narendra Modi's government. "Nudging the informal economy to the organized sector, cleansing the financial system, rationalizing taxation, incentivizing production, doubling down on infrastructure and logistics, digitizing the government's interface with its citizens and ushering in an ambitious energy transition, each one of this was part of the policy mix which is today paying off. And that, mind you, is still just the beginning!

We want our friends in Europe to appreciate that this momentum, and its compounding strength, will take us towards becoming a developed society by 2047, and along with that will grow the accompanying business opportunities. India's economic comeback and credentials are matched by our geopolitical weight, deriving from a strategic location in the Indo-Pacific region and an increasing defense and first responder capability," he added.

How India-EU Can Strengthen Strategic Autonomy

The minister said that Europe and India can strengthen each other's strategic autonomy by reducing dependencies; cooperating on critical technologies; and ensuring supply-chain restructuring. The India-EU FTA is therefore our very important goal. And the TTC will provide the structure and strategic guidance to this partnership as it moves forward.

"India's relations with Europe are stronger and deeper than ever before and this event itself is a testimony of that assertion. Between us, rests the largest democratic and free market space globally. The business communities of India and Europe have a large stake and an enabling role in this transformation. I hope your deliberations will reflect what is at stake here, not just for us but for the entire world, and how we can join hands to realize the economic dividends and democratic values that are inherent in our partnership," he concluded.