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India-EU relations set to grow

opinionIndia-EU relations set to grow

Whatever the outcome of the EU election results, it will have more to do with the EU’s internal politics, policies and legislation.

Globally, there is much media ado about the strong performance of the (populist and far) right wing in the EU elections.
While it is true that mathematically mismanaged immigration and ineffective integration has been the primary catalyst in tickling the right-wing sentiments across most European hearts and minds, it doesn’t mean that Europeans have become xenophobic by any measure. To the contrary, most Europeans understand that to maintain the current living standards, edge in innovation and technology and a robustly growing economy under the shadow and strains of an ageing population, positive immigration is needed and that most immigrants bring and add value to Europe.

While most EU citizens are fed up of being “bullied blue” by the hyper enthusiastic environmentalist, be it by their direct actions like road blocking protests etc., or stringent green policies, it doesn’t mean that the desire and drive for a pragmatic green agenda is lost.
Whatever the outcome of the EU election results, it will have more to do with the EU’s internal politics, policies and legislation than really any great shift or change in direction of EU’s international relations.

The EU will still be close to the US, support Ukraine, de-risk from China and continue to strengthen its geopolitical and economic relations with India. Since the areas of common India-EU interests are rather well identified, it is imperative to focus on examining and removing hurdles that snag and slow the pace of the EU-India cooperation.
Also, to have smoother relations, both sides need to develop a realistic understanding of each other’s position based on historical antecedents and current concerns—perhaps by trying to step into each other’s shoes and then looking at the landscape from their specific perspective.

Much finger pointing, especially by the EU has been done at India particularly in the areas of climate and environment and lately with regards to the Russia Ukraine crisis. Accusatory tone and tenor between two partners neither goes down well when redefining relations nor does it leave a good after taste.
Within the Indian context, three items that perhaps need a second look are, the proposed antitrust law, Intellectual Property law and the Quality Control Orders. While well intended they should be operationally sustainable. Regulatory mechanisms and devices are extremely important in ensuring fairness, equal business opportunities irrespective of size and quality equity but the rules should not become hurdles and scarecrows to innovators and investors.

Given that the right-wing will have much sway in Brussels, while the inherent EU goals will be the same, how the match is played will change. Six areas that could see significant shift in handling attitude will be, EU’s immigration logic and legalities, green deals, support for Ukraine, industrial and infrastructure strategy, defence strategy, and the EU enlargement strategy.
India with its newly elected government has a clear vision and focus with its Viksit Bharat or Developed India @2047 goals.

The EU has its own targets for 2030. Some of the top ones are, repairing the post pandemic tears to its economy and getting it going robustly, fulfilling its Digital Decade targets, reducing net greenhouse gas emissions by at least 55% (compared to 1990 levels)—making the EU the first climate-neutral continent by 2050, equal and inclusive Europe and having a clear EU youth support strategy.

To strengthen India-EU relations, both must focus on partnerships for the people, the planet and politics. From people’s perspective, immigration will be one of the key issues. Be it tourism, trade or transfer of talent, especially from India to the EU, if mobility remains a hurdle, growth targets cannot be achieved. Given India is the world’s largest democracy, as was proved by the world’s biggest democratic elections with about 900 million voters, Indians not only respect the democratic nature of nations but also integrate socially and economically into a society seamlessly, bringing much value to the national exchequer.
When it comes to the planet, it is not lost on the Indians the importance of protecting the environment and concepts of sustainable growth. But any green deal has to take into account the fact that it should not hinder India’s goal of Viksit Bharat @2047. Indians should not feel penalised for their development and growth because they are disinclined to take the majority burden of environmental fallouts of the nations that industrialised before India.

In the coming future the EU is likely to need two things: Firstly, a new business partner as it learns and realises the pitfalls of deep business engagements and entanglements with China (with the hope that China will one day turn into a democracy). Secondly, it needs a parallel security partner to the US, especially in the Global South and the Indo-Pacific region.
India fits the bill perfectly and neatly to the above.

Rajesh Mehta is a leading international consultant in the field of Market Entry, Innovation, and Public Policy. Manu Uniyal is a media consultant and a writer based in Sweden, working in the areas of India-Nordic geo political and economic interactions, innovation and start-ups.

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