Berliner Boersenzeitung - Shunned by US, Europe courts India over trade and security

EU chief Ursula von der Leyen and her college of commissioners are to hold talks with Prime Minister Narendra Modi and his government in New Delhi during a two-day trip, starting Thursday.

The trip is the latest sign of a Brussels push to diversify ties away from the United States and position itself as a reliable partner for others looking to do business.

"In this era of intense geostrategic competition, Europe stands for openness, partnership, and outreach," von der Leyen said ahead of the trip, hailing India as one of the EU's "most trusted friends and allies".

Almost all the EU's 26 commissioners are to join the 66-year-old German politician in what the bloc's executive is billing as the first visit of its kind to the South Asian giant -- and the first outside Europe for the new college that took office in December.

It comes as US President Donald Trump has upended Brussels's traditionally close partnership with Washington, berating EU tech laws, threatening tariffs, and undercutting European allies by launching Ukraine talks with Russia's Vladimir Putin.

The European Union has been left "looking for friends" and India, the world's most populous country, is a "natural candidate", said Andre Sapir, of Brussels-based think tank Bruegel.

- Trade call -

Brussels has been working to broaden its horizons since Trump won back the White House in November.

In recent months it has announced a strengthened trade deal with Mexico, the resumption of talks with Malaysia, a new agreement with the South American bloc Mercosur and the "first-ever" EU-Central Asia summit.

It has also struck a more conciliatory note towards China, which however "remains a significant strategic challenge for Europe", said James Crabtree, of the European Council on Foreign Relations (ECFR) think tank.

"Building stronger ties with India -- a democracy with increasing global influence -- offers both greater economic opportunity and political appeal," he said.

Trade will be high on the agenda.

The EU is India's largest trading partner, accounting for 124 billion euros ($130 billion) worth of trade in goods in 2023 -- more than 12 percent of total Indian trade, according to the EU.

India's expanding market offers key opportunities for sectors ranging from defence to agriculture, automobiles and clean energy. Yet, protected by high tariffs, it currently accounts for only 2.2 percent of EU trade in goods.

Negotiations for a trade deal were relaunched in 2022 and could get a boost from a White House bent on slapping tariffs on friends and foes alike, said a European diplomat.

"The case for a free trade agreement has never been stronger," the diplomat said.

- AI and defence -

Trump feted Modi in Washington vowing to ramp up trade this month, but India is also seeking renewed relationships elsewhere as a "hedge against a newly capricious America", said Crabtree.

The European Commission's trip comes hard on the heels of a visit by British trade secretary Jonathan Reynolds aimed at restarting stalled trade negotiations.

"In the shadow of US tariff, India back to table for trade talks with UK, EU", a headline in The Indian Express daily read on Tuesday.

One of the biggest challenges for New Delhi in recent years has been creating millions of new jobs for its young and rapidly expanding skilled workforce.

India's government has for years also pushed for Europe to grant quicker visas for its businesses and students.

Cooperation on technology and artificial intelligence, where Europe and India are eager to play a larger role, will also be on the table.

So will security and defence, the EU diplomat said, adding Brussels was eager to "join forces" with New Delhi. The supply of defence equipment, enforcement of EU sanctions against Russia and peace talks over Ukraine were likely to be discussed.

India has long pursued a policy of strategic autonomy in foreign affairs.

Historically close to Russia, its traditional supplier of military hardware, it has resisted Western pressure to distance itself from Moscow following its invasion of Ukraine.

The commission's visit is not expected to result in the signing of any deal, but should pave the way for an EU-India summit to be held in India later this year.

(A.Lehmann--BBZ)