DC Edit | Trade Deal, Strategic Ties A ‘Win-win’ For India, EU
Russian oil is no more a global issue as it was made out to be by Mr Trump though it was the most ironic part of any arguments between the US, Europe and India as Europe was also a big buyer of Russian energy well after the Ukraine war broke out in Feb. 2022
The euphoria is palpable as the genuineness of the bonhomie was there for all to see. And yet this is one trade deal that promises to take India-EU relationship way beyond the shining optics of the moment as captured in the Republic Day parade at which the European leaders Antonio Luis Santos da Costa and Ursula von der Leyen were the chief guests and then at the summit where the deal was formalised.
The deepening relationship is not reflected in the FTA alone, which itself has been described by both sides as the “mother of all deals”. The security and defence pacts signed are evidence of a far deeper turn in geopolitics since the Davos economic summit where Mr Donald Trump strained the trans-Atlantic alliance with threats and a show of attitude, which was seen as not that of a true ally despite a few U-turns. Europe put pragmatism over a historical awareness of human rights and other minor issues in embracing India like never before.
It is Uncle Sam who has been left fuming as the US President’s tariff tantrums and his avowed territorial ambitions in eyeing Greenland drove Europe firmly into a phase of diversifying its strategic security and foreign policy. It could be said that they saw the light in India displaying an exemplary autonomy in deciding upon its security and foreign policy choices after Mr Trump placed some of the highest tariffs on India and has refused to budge since August 2025.
Russian oil is no more a global issue as it was made out to be by Mr Trump though it was the most ironic part of any arguments between the US, Europe and India as Europe was also a big buyer of Russian energy well after the Ukraine war broke out in Feb. 2022. And India’s defence ties with Russia have been running for too long now and cannot change in a hurry.
The world cannot be expected to do away with double standards, but there comes a time when the practical must overrule everything else, especially when friends turn into foes and threaten even territorial sovereignty. And the timing is real rather than surreal as the USA makes it out to be in disparaging the India-EU tango.
Having been in the crosshairs of the US for too long, with US vice-president J.D. Vance and tariff czar Peter Navarro said to have actively scuppered the on-off negotiations on the trade deal, India had been actively seeking to pursue its options and diversify its export and trade destinations. And Europe can find reassurance in a market of India’s size as well as steer clear of any major deals with Mr Trump’s US for a while and also not be subject to any Chinese export controls.
The FTA is a win-win for both sides as it offers scope for becoming a good example of a partnership between major economies with tariffs slashed on nearly 97 per cent of goods from India to the EU while there will be substantial savings for European exporters as well by way of reduction of duties and tariffs, including on luxury automobiles.
The level of trust that is being built is also evident in the new security and defence partnership signed between India and the EU. What the strategic partnership that is set to take off to new heights shows is there is place for multilateralism in the world which can no longer be dominated by the US alone since its unreliability has stood exposed in its latest dealings with the EU and with India ever since Mr Trump took office a year ago.
