India signed the “mother of all deals” on 27 January 2026 with the European Union (EU), negotiating the long-standing Free Trade Agreement (FTA), which was a significant move in strengthening its bilateral economic engagement and enhancing global trade and investments. Simultaneously, the endorsement of the Security and Defence Partnership (SDP) further helped to establish a comprehensive structure for deliberation and cooperation in maintaining peace, security, and defence. The shift in the relationship between the two distinct actors holds strategic relevance amid shifting geopolitical realities. The Russia-Ukraine war, uncertainties in the US administration, and the Israel-Iran conflict not only disrupted the supply chain but also produced hybrid security threats reflecting a need for strategic collaboration in the domain of shared security challenges. Therefore, India and the EU diversifying their economic and security partnership amid a complex world order presents a balanced yet strategic choice, securing their bilateral interests while maintaining their independent priorities and posture at both the national level and the international platform. Thus, the bilateral partnership between India and the EU at multilateral forums offers a conducive environment to deepen their relations more comprehensively than before.
Strategic Depth: Evolution of India-EU Relations
With more than 60 years of diplomatic ties, India and the EU are two large democratic global actors sharing a special partnership, committed to shared universal values and principles, including democracy, a rules-based global order, and effective multilateralism. India first established diplomatic relations with the European Economic Community (now the EU) in 1962. Since then, the relationship has expanded and transformed, particularly after the end of the Cold War and the rise of the EU in 1993. Engagement improved significantly after the launch of the EU-India Strategic Partnership in 2004, marking a shift in bilateral cooperation beyond traditional alliances from trade to the defence and security domain. There have been significant challenges in terms of inconsistency in relations and the lack of firm commitments on key global issues. Despite this, both sides remained affirmative towards their partnership. Even with slow progress, both India and the EU maintained high-level dialogues, which marked a significant development in their bilateral relations. In 2016, both sides set the Agenda for Action 2020, while the EU’s adoption of its Strategy on India in 2018 and, moreover, a roadmap to 2025 in the 15th bilateral summit demonstrated strong ambitions to deepen their ties covering foreign policy, trade, climate, digital transformation, connectivity and multilateral cooperation.
Geopolitical Drivers: Why Now?
To date, 16 summits have taken place, transforming their relations more into a strategic partnership, particularly in the context of the current geopolitical scenario. At a time when countries across the world are witnessing geoeconomic and geopolitical competitions, their bilateral partnership has evolved into greater security cooperation. Behind this significant shift in the relationship, multiple factors are reshaping and redefining their security and defence ties.
The return of proxy war to the European continent after the end of the Cold War, the Russia-Ukraine war, has fundamentally reshaped its European security architecture. It has produced a geopolitical crisis for Europe, challenging European security and leading to increased defence spending and a military-based institutional approach to deal with it. Europe’s dependency on Russian energy exposed severe vulnerabilities, heavily disrupting supply chains. The EU’s firm support for Ukraine against Russia, along with the imposition of several sanctions on Russia to end this ongoing war, has affected European economies.
However, these challenges became more complex for both the EU and India following the return of Trump, as his “America First” policy introduced greater uncertainty in US actions, thereby affecting both Brussels and New Delhi. In retaliation against Russia, the US imposed a 20 per cent reciprocal tariff on the EU, later reduced to 15 per cent, and a 25 per cent tariff on India’s imports of Russian oil, bringing the total to 50 per cent on Indian goods in mid-2025. Thus, the diplomatic chaos created by US tariff policies presented an opportunity for India and the EU to finally conclude the historic FTA deal after two decades of negotiations. As a result, the EU sought to diversify its partnership and reduce overdependence on the US, with India increasingly perceived as a partner for economic resilience and security cooperation.
Europeans have been heavily reliant on the NATO alliance for security in Europe. However, after the Russia-Ukraine war led to a “geopolitical awakening” for the EU, it has adopted a more realpolitik approach to its foreign policy and has built robust defence capabilities. At the NATO Summit 2025 in The Hague, the alliance increased the security and defence expenditure target for its member states from 2 per cent to 5 per cent by 2035. This rearmament approach, reinforced by US pressure to increase defence spending, compelled the EU to push for strategic autonomy. The EU’s Security and Defence Partnership (SDP) with India presents a strategic relevance in this challenging environment. The bilateral ties cover shared security challenges across key areas including maritime security; defence industry and technology; cyber and hybrid threats; counter-terrorism, Non-proliferation and disarmament, Space security and defence, and Indo-Pacific engagement. Both sides also endorsed a Security of Information Agreement (SIA) to facilitate the exchange of classified information related to security and defence. The SDP thus provides a strategic foundation to advance EU-India cooperation.
Before 2026, the EU’s relations with India were fragmented, remaining largely confined to economic dimensions. However, amid a changing security landscape, India and the EU have found each other as strategic partners, facing common challenges through an increasingly interlinked approach. Although complexities remain in their partnership, particularly as the EU strongly criticises Russia for its assertiveness in Eastern Europe, which has created significant security risks and instability in Europe. India, by contrast, maintains friendly relations with Russia, which it regards as a reliable and historically rooted partner, often characterised as a “brotherly partnership”. Despite this fundamental divergence, India and the EU both find common ground to extend their partnership and pursue a balancing approach, carefully maintaining their strategic autonomy and national interests simultaneously. Their shared commitment to a rule-based international order in a multipolar world provides a strong foundation for deeper and more comprehensive engagement.
This convergence is further reflected in their strategic interests in a critical focal point of geopolitical competition, the Indo-Pacific region. China’s growing assertiveness, particularly in the South China Sea, combined with the US deterrence of denial in the region, has emerged as a catalytic factor in accelerating greater power competition, compelling major actors to secure their status quo and balance of power by redefining their military presence. As China rises across the Indian and Pacific Oceans, India seeks to secure its trade routes while maintaining its maritime security in the region. Therefore, India’s critical presence in the Indo-Pacific region demands urgent cooperation among like-minded partners. The EU cooperation with India supports the regional framework of the Indo-Pacific Ocean Initiative (IPOI) through its role as a dialogue partner of the Indian Ocean Rim Association (IORA) and its engagement with the Indian Ocean Commission. The launch of EU-India Consultations on the Indo-Pacific has further evolved their partnership in the region. Joint activities with the EU Naval Force (EUNAVFOR) have expanded their bilateral commitments towards a free, open, peaceful and prosperous Indo-Pacific based on international law.
Thus, a new comprehensive strategic Agenda towards 2030, emphasises strengthening the India-EU partnership by broadening, deepening and enhancing coordination. Their bilateral cooperation aims to work together as trusted partners in the increasingly complex geopolitical environment and to deliver mutually beneficial, concrete and transformative outcomes for themselves and for the wider world.
Conclusion Both India and the EU suffered from similar frictions yet experienced them differently due to their diverse geographical dynamics. Intertwined developments driving the EU towards its shifting approach to India, countering Russian chauvinism, hedging against US protectionism and rearming Europe, reflect its vision of achieving greater strategic autonomy. For India, on the other hand, it is a multi-alignment approach, navigating superpower rivalry and power politics while prioritising its national interests and security. As a sovereign actor in international politics, India plays a major role as a guarantor of regional peace and security, without undermining its foundational values and principles rooted in non-alignment. Thus, their bilateral partnership charting an independent course away from greater power dominance reflects a strategic dimension in the cooperation. It is more akin to a partnership forged in crisis, built on shared necessity and mutual resilience amid the increasingly turbulent global order. To realise its full potential, the partnership requires a more proactive approach that fosters a consistent and stable relationship guided by a long-term vision, clear objectives and tangible outcomes
