Context
Commerce and Industry Minister Piyush Goyal recently held discussions with European Commissioner for Trade and Economic Security, Maros Sefcovic, with a focus on critical areas such as the development of advanced technologies, securing critical raw material supply chains, and progressing the Free Trade Agreement (FTA) negotiations. This marks a significant step in enhancing India-EU economic relations.

Areas of Collaboration between India and the EU

India is poised to collaborate with the EU on several strategic fronts to bolster trade and technological growth. The primary objectives include:

1.   Developing Advanced Technologies:
Both India and the EU are committed to driving mutual growth through the development of cutting-edge technologies in sectors such as digital innovation, manufacturing, and industrial technologies.

2.   Securing Raw Material Supply Chains:
Another focal point of the discussions is ensuring a steady and secure supply of critical raw materials. These materials are essential for industries like energy, electronics, and defense, with a goal of reducing dependence on non-market economies.

3.   Free Trade Agreement (FTA):
Both sides have expressed a commitment to advancing FTA talks, aiming to address existing trade barriers and simplify processes, thereby making it easier for businesses to operate across both regions.

These discussions take place at a time when global supply chains are under strain, prompting countries to find ways to reduce vulnerabilities and build a more resilient and diversified trade network.

Key Areas of Economic Cooperation between India and the EU

1.   Trade: The European Union is one of India’s largest trading partners, with bilateral trade exceeding €88 billion in 2021. India ranks as the EU’s 10th largest trading partner, highlighting the importance of this relationship for both sides.

2.   Investment: The EU is a major source of foreign investment in India, with its share of India's foreign investment stock increasing from €63.7 billion in 2017 to €87.3 billion in 2020. Indian companies, such as the Tata Group, have a notable presence in the EU, particularly in countries like France and Italy.

3.   Infrastructure Development: The EU has played a key role in supporting India’s infrastructure modernization. The EU has financed several projects in sectors like energy, transportation, and other critical infrastructure, further deepening economic ties between the two regions.

About the European Union (EU)

The European Union (EU) is a political and economic union comprising 27 member states, primarily located in Europe.

·        It was established by the Maastricht Treaty, which came into force on November 1, 1993, with the goal of promoting cooperation and integration among its members to foster economic and political stability in Europe.

·        The EU uses the Euro as its common currency, which is adopted by 19 of its member states.

·        It also operates a single market, allowing the free movement of goods, services, and capital across its member countries.