Europe’s shift to centre of Delhi’s frame is welcome.
Prime Minister Narendra Modi’s trip to the Netherlands, Sweden, Norway and Italy underscores how far India’s perception of, and engagement with, Europe has evolved. Throughout the Cold War, India’s approach to Europe was shaped largely by its close economic and defence ties with the Soviet Union and its rivalry with the West. A prolonged neglect is now giving way to expanding cooperation. Buoyed by the India-EU FTA signed in January this year, following the 2024 India-EFTA agreement, Europe has been increasingly entering India’s strategic imagination despite the friction around Russia’s invasion of Ukraine. The shift comes at a time when traditional alignments are under growing strain — an unpredictable American president, an ever-deepening partnership between India’s ally Russia and competitor China, and a fragile détente between Beijing and Washington, reflected in the Trump-Xi summit.
Europe is now central to India’s pursuit of export markets, capital, advanced technology and green-energy partnerships. The PM’s tour itinerary reflects the enormous potential that collaboration with some of the continent’s smaller but highly capable economies can unlock. The Netherlands, with a population of just 18 million, is a pivotal player in the global chip race because of ASML, the sole manufacturer of the advanced lithography machines needed to produce the most advanced semiconductors. The deal between ASML and Tata Electronics will support scaling up of the latter’s fabrication plant in Dholera. In defence, India seeks to diversify procurement away from Russia, and in renewable energy, it requires both technological expertise and capital. Europe also offers opportunities for India’s youth as the diaspora across the continent continues to expand, driven by highly skilled workers and students. For Europe, meanwhile, India is a critical partner in its efforts to de-risk from a rising China.
While the EU functions as a bloc of 27 member states, each country retains its own strategic priorities and foreign policy outlook. Europe’s sub-regions, too, differ sharply in their perceptions of external powers. India already enjoys strong partnerships with key western European powers such as France, the Netherlands and Germany, and it has moved to deepen engagement with the Nordic countries while strengthening ties with Italy in the Indo-Mediterranean. More must be done to engage with these sub-regions and cultivate cross-linkages for mutual gains. With geopolitical realignments, a fraying rules-based order, and the decreasing relevance of international institutions, India’s ties with Europe can no longer be peripheral to its foreign policy.