Category: Open Trade

In a significant diplomatic engagement, the Prime Minister of India recently hosted European Commission President Ursula von der Leyen, along with the EU College of Commissioners, marking a crucial moment in India-EU relations. This historic visit, the inaugural instance of the College of Commissioners convening outside Europe at the commencement of a new EU mandate, underscores the shared commitment to augmenting strategic cooperation across diverse sectors.

Prime Minister Shri Narendra Modi and President Ursula von der Leyen asserted that the EU-India Strategic Partnership has generated substantial benefits for their respective populations and the broader global community. They pledged to elevate this partnership, building on two decades of the India-EU Strategic Partnership and over thirty years of cooperation under the India-EC Cooperation Agreement.

President von der Leyen’s official visit on 27-28 February 2025 is particularly noteworthy as it represents the first occasion that the College of Commissioners has convened outside the European continent since their new mandate began, as well as the first such engagement in the annals of India-EU bilateral relations.

As two of the largest democracies and open market economies with diverse pluralistic societies, India and the EU reaffirmed their collective commitment to fostering a resilient multipolar global order that underpins peace, stability, economic growth, and sustainable development.

A Partnership for a Transforming World

In light of the rapid transformations characterising the global landscape—driven by advancements in artificial intelligence, emerging technologies, and fluctuating geopolitical and economic dynamics—the partnership between India and the EU assumes heightened importance. Both entities, unified by democratic values and a commitment to a rules-based international order, continue to bolster their collaboration to address global challenges while unlocking new economic and technological possibilities.

Reflecting on the two-decade-long strategic partnership, the Prime Minister commended the high-level ministerial engagements that occurred during the visit, which included approximately twenty bilateral meetings and a productive session of the India-EU Trade and Technology Council (TTC). These discussions have laid a robust foundation for deeper collaboration across multiple domains.

Key Areas of Cooperation

The leaders underscored that shared values and principles—such as democracy, the rule of law, and adherence to a rules-based international order aligned with the purposes and principles of the UN Charter—position India and the EU as like-minded and trusted partners. The India-EU Strategic Partnership is deemed essential now more than ever to collaboratively address global issues, foster stability, and promote mutual prosperity.

In this context, the leaders delineated eight strategic priorities that will shape the next phase of India-EU cooperation:

Supply Chain Resilience

The India-EU Trade and Technology Council will be directed to enhance its engagement to foster outcome-oriented cooperation in areas pertaining to economic security and supply chain resilience. This includes market access and trade barriers, augmentation of semiconductor ecosystems, sustainable artificial intelligence, high-performance computing, 6G technology, digital public infrastructure, and collaborative research and innovation targeting green and clean energy technologies. Emphasis will also be placed on trustworthy partnerships and industry linkages across these sectors, particularly regarding the recycling of batteries for electric vehicles, addressing marine plastic litter, and converting waste to green or renewable hydrogen. In this regard, progress in the implementation of the Memorandum of Understanding on semiconductors for strengthening supply chains has been welcomed, which includes leveraging complementary strengths and facilitating talent exchanges to enhance semiconductor skills among students and young professionals. Additionally, the signing of the Memorandum of Understanding between the Bharat 6G alliance and the EU 6G Smart Networks and Services Industry Association aims to create secure and trusted telecommunications while fostering resilient supply chains.

Strategic Technologies, Digital Governance, and Digital

Connectivity

India and the European Union (EU) have reaffirmed their commitment to enhancing digital cooperation through the establishment of the Working Group on Strategic Technologies. Both parties aim to facilitate a human-centric digital transformation by advancing key areas such as artificial intelligence (AI), semiconductors, high-performance computing, and 6G technology, thereby ensuring economic security and competitiveness.

The parties have agreed to improve the interoperability of Digital Public Infrastructure (DPI) while prioritising the protection of human rights, privacy, and intellectual property. The mutual recognition of electronic signatures is expected to streamline cross-border digital transactions.

To fortify semiconductor supply chains, India and the EU will collaborate on research and development (R&D) in chip design, sustainable technologies, and advanced manufacturing processes. Additionally, the launch of talent exchange programmes will further enhance this collaboration.

In terms of AI, both sides are committed to its safe, responsible, and trustworthy development, with plans to expand cooperation between the European AI Office and the India AI Mission. Joint initiatives will focus on ethical AI, large language models, and their applications in climate science and bioinformatics.

A newly established 6G partnership between the Bharat 6G Alliance and the EU’s 6G Smart Networks Association will align research and development priorities and bolster telecommunications security. Further cooperation will encompass standardisation in information technology and telecommunications, the development of digital skills, and the establishment of legal frameworks for skilled professionals.

Both parties have also pledged to collaborate on the implementation of the Global Digital Compact and advance multi-stakeholder internet governance, particularly through WSIS+20.

Clean and Green Technologies

India and the EU have reiterated their commitment to achieving net-zero emissions, with India targeting 2070 and the EU aiming for 2050, through technological innovation, investment, and market collaboration. To propel advancements in clean technologies, they intend to strengthen R&D partnerships, support startups and small to medium-sized enterprises (SMEs), and promote the market adoption of innovative solutions.

A joint research fund amounting to EUR 60 million has been established for critical sustainability initiatives, including battery recycling for electric vehicles, the detection of marine plastic litter, and waste-to-hydrogen technologies. Expert exchanges will address EV interoperability, charging infrastructure, and standardisation. Moreover, an Ideathon will facilitate collaborative problem-solving regarding marine plastic pollution, while both sides will explore harmonised hydrogen safety standards and advances in wastewater treatment technologies.

Trade, Investment, and Resilient Value Chains

India and the EU are committed to fostering resilient, diversified, and sustainable value chains, complementing ongoing negotiations regarding the Free Trade Agreement (FTA) and the Investment Protection Agreement (IPA). Their collaboration will span several key sectors:

1. Agriculture – Focus on strengthening climate-resilient farming practices, crop diversification, and strategies for food security.

2. Pharmaceuticals – Aim to enhance transparency and sustainability in the supply chains of Active Pharmaceutical Ingredients (APIs).

3. Clean Technologies – Work towards expanding supply chains for solar energy, offshore wind energy, and hydrogen while minimising trade barriers and encouraging investment.

Both parties will continue to address market access issues and enhance cooperation regarding Foreign Direct Investment (FDI) screening. They have reaffirmed their support for reforms within the World Trade Organisation (WTO) and a functional dispute resolution system, alongside ongoing discussions regarding the EU’s Carbon Border Mechanism (CBAM) to address challenges facing SMEs.

Reiterating their commitment to strengthen economic and technological cooperation, India and the EU plan to reconvene within a year for the next Trade and Technology Council (TTC) meeting to evaluate progress and establish new priorities.

Connectivity and Climate Action

Concrete steps will be undertaken to realise the India-Middle East-Europe Economic Corridor (IMEC), as announced during the G20 Leaders’ Summit in New Delhi. Additionally, both parties will further deepen their cooperation within the framework of the International Solar Alliance (ISA), the Coalition for Disaster Resilient Infrastructure (CDRI), the Leadership Group for Industry Transition (LeadIT 2.0), and the Global Biofuels Alliance.

Furthermore, India and the EU will continue to expand and deepen collaboration in connectivity, clean energy, climate, water management, smart and sustainable urbanization, and disaster management. Specific areas of intensified cooperation will include clean hydrogen, offshore wind energy, solar energy, sustainable urban mobility, aviation, and rail systems. In this context, both parties have welcomed the agreement to hold an India-EU Green Hydrogen Forum and the India-EU Business Summit on Offshore Wind Energy.

Defence Cooperation

The leaders have expressed satisfaction with the growth of cooperation within the defence and security sectors, which includes joint exercises and collaboration between the Indian Navy and EU maritime security entities. The EU has welcomed India’s interest in participating in projects under the EU’s Permanent Structured Cooperation (PESCO) and engaging in negotiations for a Security of Information Agreement (SoIA). The leaders also reaffirmed their commitment to exploring a security and defence partnership.

People-to-People Ties

India and the European Union (EU) are committed to enhancing their people-to-people ties across various sectors including education, research, culture, sports, tourism, and youth exchanges. This collaboration aims to foster mutual understanding, create economic opportunities, and promote shared growth, reflecting a longstanding commitment to a more interconnected future.

India continues to be a primary beneficiary of the EU’s Erasmus+ program, with over 6,000 scholarships awarded. Additionally, more than 2,700 Indian researchers have participated in the Marie Skłodowska-Curie Actions, representing the highest participation rate globally. The inauguration of India’s first Jean Monnet Centre of Excellence at Manipal Academy further strengthens academic cooperation. In recognition of India’s skilled workforce and the labour market needs within the EU, both parties have initiated Phase II of the India-EU Migration and Mobility project. This project seeks to facilitate legal migration and mitigate irregular movement, with Indian professionals now acquiring over 20% of EU Blue Cards. Efforts to streamline Schengen visa processes and enhance air connectivity, as established under the 2008 Horizontal Civil Aviation Agreement, are expected to boost business, tourism, and academic exchanges. Furthermore, expanded cultural, sports, and youth collaborations will enhance cross-cultural understanding and fortify long-term ties. Through these initiatives, India and the EU are establishing a foundation for a more interconnected and mutually beneficial partnership.

During recent discussions, the leaders addressed key international and regional issues, including the Middle East and the war in Ukraine. They reaffirmed their dedication to achieving a just and lasting peace in Ukraine, grounded in adherence to international law, the UN Charter, as well as the principles of territorial integrity and sovereignty. Regarding the Israel-Palestine conflict, both parties reiterated their steadfast support for a two-state solution, envisioning peaceful coexistence within recognised borders in accordance with international law.

Acknowledging the depth and productivity of their dialogue, the leaders agreed upon a series of concrete steps to advance bilateral cooperation. They committed to expediting the conclusion of the Free Trade Agreement (FTA) by the conclusion of the year and to intensifying discussions regarding defense industry collaboration and related policy initiatives. A review meeting with stakeholders will evaluate progress concerning the India-Middle East-Europe Economic Corridor (IMEC), while efforts to enhance maritime domain awareness will improve shared assessments, coordination, and interoperability.

To foster technological and economic collaboration, both parties agreed to convene the next Trade and Technology Council (TTC) meeting at the earliest opportunity to deepen cooperation in semiconductors and other critical technologies. They also pledged to enhance dialogue among governments and industries concerning clean and green energy, with a particular focus on green hydrogen. In the Indo-Pacific region, cooperation will be expanded through trilateral initiatives, reinforcing shared strategic priorities. Additionally, efforts to strengthen disaster management coordination will be advanced through both policy and technical engagements, improving preparedness, response capabilities, and overall resilience.

A Vision for the Future

As preparations for the forthcoming India-EU Summit are underway, both parties reiterated their commitment to ambitious actions and a shared vision for a resilient global order. President von der Leyen acknowledged India’s increasing role in shaping international developments, while the Prime Minister emphasissed the importance of speed and strategic foresight in an era characterized by rapid technological advancements. The session concluded with a mutual optimism for the future, with both leaders agreeing to organize the next India-EU Summit at the earliest opportunity, during which a new joint Strategic Agenda will be adopted. This high-level engagement represents a significant moment in India-EU relations, setting the stage for deeper cooperation and sustainable global progress in the years to come.              

An informal grouping of countries that has evolved into an intergovernmental organisation, BRICS serves as a forum for cooperation among nine leading emerging economies: Brazil, China, Egypt, Ethiopia, India, Iran, Russia, South Africa, and the United Arab Emirates.

BRICS, an intergovernmental organisation, was initially identified to highlight investment opportunities in emerging markets. Over time, it evolved into a geopolitical bloc, with member governments meeting annually at formal summits and coordinating multilateral policies since 2009.

The principles of non-interference, equality, and mutual benefit primarily guide relations among BRICS countries.

The founding countries—Brazil, Russia, India, and China—held their first leaders’ summit in Russia in 2009 under the name “BRIC.” Following the Group’s expansion, South Africa joined in 2010 and participated as a full member at the 2011 Summit. Iran, Egypt, Ethiopia, and the United Arab Emirates attended their first Summit as full member States during the 2024 Summit in Russia. The acronym “BRICS+” has been informally used to reflect the inclusion of these new members.

BRICS institutions are regarded as alternatives to Western-led organisations such as those dominated by the G7 Bloc of advanced economies. Collectively, BRICS has introduced various initiatives, including the New Development Bank (NDB), the BRICS Contingent Reserve Arrangement, BRICS Pay, the BRICS Joint Statistical Publication, and the proposed BRICS basket reserve currency.

These initiatives have garnered praise and criticism from analysts and commentators, reflecting the group’s growing influence in global economic and political arenas.

How BRICS Came to Be

The term “BRIC” was originally coined to describe foreign investment strategies. It was introduced in the 2001 publication Building Better Global Economic BRICs by Jim O’Neill, who was then the head of global economics research at Goldman Sachs and later served as Chairman of Goldman Sachs Asset Management.

The foreign ministers of the initial four BRIC countries—Brazil, Russia, India, and China—met for the first time in New York City in September 2006 on the sidelines of the General Debate of the UN Assembly. This meeting marked the beginning of a series of high-level diplomatic engagements. A full-scale diplomatic meeting was held in Yekaterinburg, Russia, on June 16, 2009.

The first formal BRIC Summit, also held in Yekaterinburg, took place on June 16, 2009. It was attended by the leaders of the four founding nations: Luis Inácio Lula da Silva (Brazil), Dmitry Medvedev (Russia), Manmohan Singh (India), and Hu Jintao (China). The Summit’s primary focus was improving the global economic situation and reforming financial institutions. The discussions also explored ways for the four countries to enhance cooperation in addressing global challenges and increasing the involvement of developing nations—like three-quarters of the BRIC members—in global affairs.

Following the Yekaterinburg Summit, the BRIC nations announced the necessity of establishing a new global reserve currency characterised by diversity, stability, and predictability. Although their statement did not explicitly criticise the perceived “dominance” of the US dollar—an issue Russia had raised in the past—it did trigger a decline in the dollar’s value against other major currencies.

Expansion in 2010

In 2010, South Africa initiated efforts to join the BRIC grouping. The formal admission process began in August of that year. On December 24, 2010, South Africa officially became a member after being formally invited by China and subsequently accepted by the other BRIC nations. The group was renamed BRICS, with the “S” representing South Africa, to reflect the expanded membership. In April 2011, South African President Jacob Zuma attended the BRICS Summit in Sanya, China, as a full member for the first time.

New Development Bank

In June 2012, the BRICS nations pledged $75 billion to increase the lending capacity of the International Monetary Fund (IMF). However, this contribution was contingent upon IMF voting reforms.

By March 2013, during the fifth BRICS Summit held in Durban, South Africa, member countries agreed to establish a global financial institution as an alternative to the Western-dominated IMF and World Bank. This initiative was the foundation of the New Development Bank (NDB), with plans for its formal establishment by 2014.

During a BRICS leaders’ meeting in St. Petersburg in September 2013, financial commitments toward the reserve pool were announced: China pledged $41 billion; Brazil, India, and Russia each committed $18 billion, and South Africa contributed $5 billion. As China held the world’s largest foreign exchange reserves, it sought a more significant managerial role and proposed hosting the reserve fund.

In October 2013, Russian Finance Minister Anton Siluanov confirmed that $100 billion would be designated to stabilise currency markets, with implementation targeted for early 2014. Brazilian Finance Minister Guido Mantega further confirmed that the fund would be operational by March 2014. However, by April 2014, the currency reserve pool and the Development Bank were delayed, with the timeline pushed to 2015.

In July 2014, during the sixth BRICS Summit in Fortaleza, Brazil, the BRICS members officially signed agreements to establish the $100 billion New Development Bank (formerly referred to as the “BRICS Development Bank”) and a reserve currency pool worth an additional $100 billion. Other agreements included cooperation frameworks between BRICS export credit agencies and collaborative innovation strategies.

The Fortaleza Summit was followed by a meeting in Brasília between BRICS leaders and the Union of South American Nations (UNASUR) presidents, further solidifying cooperation between the two groups.

A Range of Initiatives

Since 2011, the National Institutes of Statistics of the BRICS nations—comprising IBGE (Brazil), Rosstat (Russia), the National Bureau of Statistics of China, the Central Statistics Office of India, and Statistics South Africa—have collaborated on an annual joint statistical publication. This initiative aims to provide a unified data platform, offering statistical comparisons, insights into adopted methodologies and results beneficial to all participating countries.

In 2012, BRICS began planning an optical fibre submarine communications cable system, referred to as the BRICS Cable, to facilitate secure telecommunications between member countries. This project was partly motivated by concerns over surveillance by the U.S. National Security Agency, which monitored global telecommunications traffic flowing through the United States. However, as of 2023, the construction of this cable system had yet to commence.

In August 2019, during the fifth meeting of BRICS communication ministers in Brasília, Brazil, a letter of intent was signed to enhance cooperation in the Information and Communication Technology (ICT) sector. This agreement underscored the Group’s commitment to advancing technological collaboration.

The New Development Bank (NDB), a key BRICS institution, announced plans to disburse $15 billion to member states to support struggling economies after the COVID-19 pandemic. The 2020 BRICS Summit, held virtually in St. Petersburg, Russia, focused on addressing the pandemic’s impact and reforming the multilateral system.

At the 13th BRICS Summit in 2021, Indian Prime Minister Narendra Modi called for a transparent investigation into the origins of COVID-19, urging full cooperation from all nations under the World Health Organisation (WHO). In response, Chinese President Xi Jinping emphasised the need for BRICS nations to oppose the politicisation of the investigation process.

In May 2023, South Africa announced plans to grant diplomatic immunity to Russian President Vladimir Putin and other officials, allowing them to attend the 15th BRICS Summit despite the International Criminal Court (ICC) arrest warrant against Putin. However, in July 2023, Putin confirmed that he would not personally attend the Johannesburg Summit, held from August 22 to 24. Instead. He participated remotely, delivering remarks and joining all BRICS leaders’ sessions, including the Business Forum, through virtual channels.

2024 Expansion

At the 15th BRICS Summit in August 2023, South African President Cyril Ramaphosa announced the invitation of six emerging market countries—Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE)—to join the bloc. Full membership for these nations was initially scheduled to commence on January 1, 2024.

However, political developments in Argentina disrupted its anticipated membership. Following the November 2023 general election, Argentina’s new President, Javier Milei, pledged to withdraw the country’s application. On November 30, 2023, incoming Foreign Minister Diana Mondino confirmed Argentina’s decision not to join BRICS. By December 29, 2023, the Argentine government formally communicated its withdrawal from the application process to all BRICS leaders.

Saudi Arabia also delayed its entry into BRICS. While initially slated to join on January 1, 2024, the country announced in mid-January that it was still evaluating its decision. As of April 2024, Saudi Arabia’s membership remained under consideration.

The BRICS expansion was framed as a strategic move to foster a multipolar global order, counterbalancing the Western-dominated geopolitical landscape. China Daily highlighted the expansion as evidence of increasing interest from developing nations in joining BRICS.

On October 24, 2024, the Bloc extended invitations to 13 additional countries—Algeria, Belarus, Bolivia, Cuba, Indonesia, Kazakhstan, Malaysia, Nigeria, Thailand, Turkey, Uganda, Uzbekistan, and Vietnam—to participate as “observer partner countries.” While these nations were not granted full membership, their observer status allows them limited engagement and support from BRICS member States.

Currently, the economic and political dynamics of the Bloc are significantly influenced by China, which contributes approximately 70% of the organisation’s total GDP. Among the member countries, Brazil, India, and China are notable for their inclusion in the world’s top ten nations by population, land area, and gross domestic product (GDP) in both nominal and purchasing power parity (PPP) terms.

As of 2024, all five founding members of BRICS—Brazil, Russia, India, China, and South Africa—are also members of the G20. Together, they represent a combined nominal GDP of US$28 trillion (27% of the global gross world product), a total GDP (PPP) of approximately US$65 trillion (35% of global GDP PPP), and combined foreign reserves estimated at US$5.2 trillion.

BRICS Summits

Since 2009, BRICS has held annual summits, with each member country taking turns to host. Before South Africa’s admission, two BRIC summits took place in 2009 and 2010.

The First Summit with all five BRICS members was held in 2011 in China, marking the expanded group’s formal meeting.

The First Summit with all nine member countries occurred in 2024 in Russia.

Due to the COVID-19 pandemic, the 2020, 2021, and 2022 Summits were conducted via video conference, adapting to the global health crisis.