Stronger India–EU Ties Can De-Risk the Global Economy, Says Jaishankar

India’s External Affairs Minister Dr. S. Jaishankar has underlined the growing importance of stronger India–European Union relations, stating that deeper cooperation between the two can play a crucial role in de-risking the global economy. His remarks come at a time when the world is grappling with geopolitical instability, supply-chain disruptions, and economic fragmentation, making trusted partnerships more essential than ever.

Speaking during an interaction with European Union ambassadors in New Delhi, Jaishankar observed that volatility has become the defining feature of the global economic landscape. In such an environment, he argued, India and the EU—both large, democratic, and rule-based economies—are well positioned to offer stability and confidence to global markets.

Image from Economic Times

Building Resilient Supply Chains and Economic Confidence

A key focus of Jaishankar’s address was the need for resilient and diversified supply chains. He noted that over-dependence on limited geographies has exposed vulnerabilities in global trade, particularly in the aftermath of the pandemic and ongoing geopolitical conflicts. Enhanced India–EU cooperation, he said, can help mitigate these risks by encouraging reliable production networks, smoother trade flows, and greater technological collaboration.

The External Affairs Minister also highlighted that stronger economic engagement between India and Europe would not only benefit both sides but would also contribute to global economic reassurance. By working together on trade, mobility, digital frameworks, and security cooperation, India and the EU can help stabilise international commerce and reduce systemic shocks.

India–EU Free Trade Agreement: A Long-Awaited Breakthrough

Central to the evolving partnership is the long-pending India–EU Free Trade Agreement. Negotiations, which resumed with renewed momentum in recent years, are now nearing a critical stage. The proposed agreement aims to expand market access, reduce tariffs, address non-tariff barriers, and promote investment flows between the two economies.

The European Union is already among India’s largest trading partners, while India represents one of the fastest-growing major markets for European businesses. A comprehensive trade deal is expected to significantly boost bilateral trade, support manufacturing and services, and integrate Indian companies more deeply into European value chains. At the same time, European firms stand to gain improved access to India’s expanding consumer base and infrastructure sector.

Strategic and Geopolitical Dimensions of the Partnership

Beyond economics, Jaishankar emphasised the broader strategic convergence between India and the EU. He pointed out that both share an interest in upholding a multipolar world order, strengthening maritime security, combating piracy, and providing humanitarian and disaster-relief assistance. Cooperation in these areas, he noted, enhances trust and reinforces the credibility of democratic partnerships on the global stage.

The timing of these discussions is also significant. The visit of senior EU leadership to India around the Republic Day celebrations reflects the deepening political goodwill between the two sides. Such high-level engagement signals that India–EU relations are no longer limited to trade alone but are evolving into a comprehensive strategic partnership.

The MGMM Outlook

India–EU relations are increasingly emerging as a stabilising force at a time when the global economy is marked by uncertainty, fragmentation, and strategic distrust. External Affairs Minister Dr. S. Jaishankar’s emphasis on deeper cooperation reflects a broader reality: partnerships rooted in democratic values, transparency, and rule-based systems are now essential to global economic resilience. As supply chains face repeated shocks due to geopolitical tensions and over-concentration in limited regions, closer India–EU engagement offers a credible pathway to diversification, reliability, and long-term confidence in global trade and investment flows.

The renewed momentum around the India–EU Free Trade Agreement underscores this strategic alignment. With the European Union already among India’s most significant trading partners and India representing one of the world’s fastest-growing major economies, a comprehensive trade pact has the potential to reshape economic linkages across manufacturing, technology, services, and infrastructure. Beyond commerce, the partnership reflects shared strategic interests in a multipolar world order, maritime security, and global stability. Strengthening India–EU ties, therefore, is not merely a bilateral objective but a wider signal that trusted cooperation—rather than economic isolation—will define sustainable growth and global economic de-risking in the years ahead.

(Sources: Firstpost, Economic Times, Business Today)