EU and India to boost trade, Indo-Pacific partnership as China’s influence grows
- The bid to deepen ties comes amid the EU’s concern over human rights in China, and as border tensions remain between New Delhi and Beijing
- Both will discuss projects that offer an alternative to China’s Belt and Road Initiative, while EU navies hope for a ‘meaningful presence’ in the Indo-Pacific
The summit is likely to focus on the issue of vaccine supply chains and pandemic preparedness, according to reports in Indian media.
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On Wednesday, the EU unveiled draft rules that propose action against state-subsidised foreign firms making unfair inroads into Europe, a move that could affect Chinese companies adversely.
Last month, the EU Council unveiled the bloc’s Indo-Pacific strategy, including exploring closer economic ties with India and pledging to foster a rules-based order with “free and open maritime supply routes in full compliance with international law”, without naming China.
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Malhotra said that “rude awakenings” suffered by the EU and India had led to a dramatic shift in their China policies, “from engagement to checking Chinese influence”.
“Tensions with China have propelled India and Europe to view each other in a different light – as valuable partners in diversifying supply chains, reducing economic dependencies on China, and securing the Indo-Pacific region,” she said.
A press statement issued after the EU-India working group meeting on April 23 said such a partnership would have “a strong digital component”.
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Malhotra said the connectivity pact between both sides would be significant.
“An EU-India counter to China’s BRI that will pursue joint infrastructure projects focusing on energy, transport and digital infrastructure will aim to shape the norms around regional connectivity,” Malhotra said.
The EU is also expected to win India’s support for its Indo-Pacific plans.
Axel Berkofsky, a professor at the department of political and social sciences at Italy’s University of Pavia, said that while details had yet to emerge, the EU’s recently-stated intent to establish a “meaningful presence” in the Indo-Pacific indicated EU member states would be deploying naval vessels to the region.
“We know that all of this is, above all, about containing China,” he said.
Germany had planned to send a naval frigate through the Indo-Pacific, but those plans are under a cloud, with Berlin reportedly wary of “challenging” Beijing, reports said.
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“I doubt the EU or European strategies would keep the Chinese policymakers awake at night. But that said, it is better than nothing and there is interest – that is important,” Berkofsky said.
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Apart from the EU’s strategic aims, the upcoming summit is crucial for New Delhi at a time when the country is being ravaged by a ferocious second wave of coronavirus infections that is likely to delay its post-pandemic economic recovery.
According to EU data, the bloc is India’s largest trading partner, with more than US$96 billion worth of goods traded in 2019, up by some 70 per cent in the last decade. EU countries are the second-largest destination for Indian exports, after the US. For the EU, India is its 10th-biggest trading partner.
Dhananjay Tripathi, senior assistant professor at the department of international relations at New Delhi’s South Asian University, said it was time for India to dust off its ties with Belgium.
“For India, Britain has been India’s gateway to the EU. After Brexit, India has had to find newer partners in the EU and newer ways of engaging with it,” he said, adding that “political and economic dynamics had also changed, post-Brexit”.
