India and EU flags | Representational image | Twitter | @EU in India
With eyes on China s Belt and Road Initiative (BRI), India and the European Union yesterday (8 May) announced a comprehensive Connectivity Partnership to support resilient and sustainable connectivity projects in India and other nations and regions like Africa, Central Asia, and the Indo-Pacific,
Economic Times.
The development gains significance as it is India s first such connectivity initiative with any foreign partner covering three geographical zones. Moreover, the alternative to BRI comes at a time when China s BRI has pushed several nations into debt traps.
The said India-EU partnership covers digital, energy, transport and people-to-people sectors. It is aimed at pooling together resources, norms and expertise to serve the needs of the next generation of sustainable and quality infrastructure.
India and EU flags | Representational image | Twitter | @EU in India
In a big boost to the Indo-EU ties, the two nations are set to begin parallel negotiations for separate trade and investment agreements which would make up a comprehensive Free Trade agreement (FTA),
Economic Times.
Announcing the development, Union Minister for Commerce and Industry Piyush Goyal emphasised that trade and investments go hand in hand and that the two sides are committed to concluding the two pacts together at an early date.
Goyal also said that countries are looking for trusted trading partners amid the pandemic and given Indiaâs track record, it will be the EUâs âmost natural and reliable ally, partner and friendâ.
India and the European Union have agreed to resume talks for a balanced, ambitious and comprehensive trade agreement and also launch negotiations for a stand-alone investment protection pact, the External Affairs Ministry said on Saturday. These decisions were taken during a virtual summit between Prime Minister Narendra Modi and the heads of state or government of all the 27-member states of the bloc with a focus on expanding overall cooperation in areas of trade, investment and connectivity. The two sides also launched a sustainable and comprehensive connectivity partnership, the ministry said and described the summit as a watershed moment in the ties.
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India’s relations with Europe tend to focus on the Old Continent’s western side – and for good reasons. France has emerged as a significant supplier of military equipment, Germany is India’s biggest trading partner within the EU, and the U.K. is a hub for Indian companies. And yet there is certainly room for New Delhi’s relations with other European states to grow, even though their capabilities are much more limited.
For instance, as most of Central Eastern Europe is a part of the EU, the region offers foreign companies access to the European Union’s markets but with lower operation costs than further west. The Apollo Tyres factory in Hungary is a rare case of a major Indian firm investing in the region with probably those considerations in mind.