India eu economic relationship

EU-India relations come full-circle –

india eu economic relationship

India EU Free Trade Agreement: Find Latest Stories, Special Reports, News healthcare, agriculture, infrastructure to boost economic ties with India: Italy. India-EU relations date to the early s, with India being amongst the first diplomatic relations with the European Economic Community. India is now the world's fastest-growing economy, ahead of China, and the Indians tend to approach Europe through bilateral relationships with each member.

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All this could be the European Union as much as the Indian union. Europe is also the biggest source of foreign investment in India — though many European firms operate from Mauritius or Singapore shell companies for tax reasons. Like Europe, India has missed the boat on mega trade deals: There has been no EU—India summit since — after a run of 12 since — though the need for strategic dialogue has greatly increased.

Europe actually crafted a Joint Action Plan for strategic cooperation inwhose first two points were about increasing dialogue. Modi is a globetrotter and will have visited four European capitals by the end of Novemberbut has not yet met with Brussels. Sincethere have been only three executions in India all related to the New Delhi and Mumbai terror attacks of and In the same period, there were executions in the United States, and an estimated 50, to 80, in China — has the EU been as strong a voice in these cases?

India is stubborn too. Inthe arrest of an Indian diplomat to the United Nations over a nanny visa issue sparked a major row between India and the US. European policy towards India is not fully coordinated. More generally, the EU is saddled by a disconnect between member states who compete fiercely over the Indian market, and those who hold back due to criticism on religious or human rights grounds.

india eu economic relationship

Hindu nationalism has led to state bans on beef consumption, and NGOs are challenged on their foreign sources of financing. Greenpeace has been particularly targeted. Some of his reforms have therefore been initiated by the government under an act which allows for temporary promulgation between parliamentary sessions. In fact, Modi has now desisted from this strategy, and follows parliamentary procedure to the letter. Modi and the BJP have no monopoly on intolerance.

And Hindu nationalism, or hindutva, exists in the two major parties — among the 54 who compete for attention at the national level. A striking example is the success of the GiveItUpMovement: Unofficially, it is 50 percent — although 17 percent of these live in slums.


Some 40 percent of schoolchildren 31 percent in rural areas attend fee-paying private schools. As much as he has centralised political power within a small coterie of followers, he is also tactically reaching out to other political forces at state level. A key move has been the devolution of significant fiscal resources to the states themselves, fostering competition among them. Kicking the thorny issue of a land acquisition act to the states will look like a stroke of genius if state governments move on the issue — but so far, only five have done so.

Introduction | What does India think? | European Council on Foreign Relations

He has retreated on the implementation of a Goods and Services Tax GST that would tear down trade barriers between states — but is still promising this by April More fundamentally, after ending some corrupt practices — redistributing coal mines licences handed out in murky circumstances under the previous government — Modi will have to prove to voters that he runs a cleaner house.

He has signed a land border deal with Bangladesh and renewed ties with the Indian Ocean states and Sri Lanka — though attempts to reach out to Nepal have been unsuccessful. It is a welcome development that India has practically admitted its role in supporting Baluchistan separatist groups who have carried out attacks in Pakistan.

india eu economic relationship

More broadly, Modi has pivoted east — to Japan, where there are shared interests in corralling China, as well as a kinship with the conservative Shinzo Abe. Delivering growth and reform None of this will matter if India misses its chief goal — annual growth of at least 8 percent. Growth, jobs, inflation, and corruption are the issues that now move voters.

And, unlike in developed democracies, Indians do vote — 67 percent of them — a number that is going up, not down. It has gone through several years of 10 percent-plus growth, and its current rate of 7 percent makes it the fastest-growing economy, just ahead of China: It is blessed by the current international conjuncture of low import prices for energy and commodities plus cheap capital — and it relies far more for growth on its domestic market than on exports.

But it is also cursed by its own demons — crony capitalism, and an individualism whose flipside is indifference to public goods. India is reluctant to do so, given its protectionist slant favouring domestic industry.

india eu economic relationship

India also wants the EU to grant it the status of a "data-secure nation". This status would substantially reduce compliance costs for Indian software companies working in the EU.

However, given concerns over regulatory norms and data-privacy standards, the EU is unlikely to budge on this in the forecast period. Furthermore, the EU is pressing India to improve protections for workers and intellectual property IP.

India-EU Strategic Bilateral Partnership

The issue of IP protection is particularly crucial for the pharmaceutical sector. Attention deficit Historically, India has tended to focus on its ties with some of the largest EU members, particularly the UK and France.

EIU Concierge

This has historically left India's diplomatic relationship with the wider EU relatively weak and largely revolving around a series of annual discussions established around the India-EU Joint Commission framework. Meanwhile, India's diplomatic priority currently focuses on countering China's growing economic and military influence in South Asia.

india eu economic relationship

This has also resulted in India being drawn closer into groupings based around the Indo-Pacific. This has been complemented by the government's Act East policy, which has deepened engagement with East and South-east Asian countries such as Vietnam and Japan. The EU, meanwhile, is preoccupied with internal tensions and its fraying relationship with the US under the presidency of Donald Trump.