India and EU Position Themselves as Pillars of Global Stability
India and the European Union can jointly act as strong providers of global stability amid growing geo-economic uncertainty. European Council President Antonio Costa said this on Monday. Speaking ahead of the India-EU Summit, Costa stressed that closer cooperation between New Delhi and Brussels is essential. He said it would help protect the international rules-based order.
Costa noted that rising trade unpredictability and protectionist policies are increasing global risks. Therefore, such partnerships have become more important than ever. He also underlined that India and the EU share strong democratic values. These shared values further strengthen their strategic alignment in an increasingly multipolar world.
Free Trade Agreement Seen as Geopolitical Stabiliser
Significantly, Costa said the proposed India-EU Free Trade Agreement would act as a geopolitical stabiliser. The summit is expected to conclude negotiations on the long-pending trade pact. It may also finalise a Security and Defence Partnership. A mobility framework for Indian students and professionals is also on the agenda.
According to Costa, the trade deal will show how nations can solve economic challenges through cooperation. He said it sends a clear political message against tariffs and protectionism. This comes at a time when several countries are raising trade barriers.
Trade, Investment and Economic Impact
At present, the European Union is India’s largest trading partner. Trade in goods reached €120 billion in 2024. This accounted for 11.5% of India’s total trade. Meanwhile, services trade touched €59.7 billion in 2023.
EU foreign direct investment in India also increased sharply. It rose to €140.1 billion in 2023 from €82.3 billion in 2019. Once the FTA is signed and ratified, bilateral trade could grow further. Indian exports like textiles and jewellery may benefit. These sectors have been hit by high US tariffs.
Security, Indo-Pacific Cooperation and Strategic Outlook
Beyond trade, Costa highlighted expanding cooperation in security and defence. He said joint efforts in cyber security, counter-terrorism and maritime security are crucial. These initiatives help maintain peace in the Indo-Pacific region.
The EU’s participation with India in Operation Aspides has strengthened maritime security. It has also ensured free commerce between the Indo-Pacific and Atlantic routes. Costa’s presence at India’s Republic Day celebrations carried symbolic weight. He attended alongside European Commission President Ursula von der Leyen. Together, these developments signal a long-term partnership. The relationship is rooted in trust, stability and open trade.
