BRUSSELS — India and the European Union took a decisive step toward deepening their economic and technological partnership this week as External Affairs Minister S. Jaishankar met with European Council President Charles Michel and other senior EU officials in Brussels. The high-level engagement, centered on the third meeting of the India-EU Trade and Technology Council (TTC), underscores both sides’ efforts to align policies on critical supply chains, digital trade, and emerging technologies amid shifting global geopolitics.
Jaishankar’s two-day visit, which concluded on July 15, was framed by India’s Ministry of External Affairs as a pivotal moment in bilateral relations, with discussions expected to yield progress on long-standing trade barriers, investment screening mechanisms, and joint research initiatives in quantum computing and 6G technology. The minister’s meeting with Michel, in particular, highlighted the EU’s role in advancing cooperation on trade and technology, areas where both India and the bloc have sought to reduce dependence on China while navigating regulatory and strategic divergences.
What Happened
Jaishankar’s visit to Brussels marked the third meeting of the India-EU TTC, a platform established in 2022 to address regulatory hurdles, foster innovation, and enhance collaboration in critical and emerging technologies. The TTC operates through three working groups: one focused on strategic technologies and security, another on green and clean energy technologies, and a third on trade, investment, and resilient value chains.
During his meeting with Michel, Jaishankar emphasized the European Council president’s contributions to strengthening the India-EU strategic partnership, particularly in trade, technology, and supply chain resilience. While neither side released a joint statement following the meeting, an official readout from India’s Ministry of External Affairs indicated that the discussions covered “the full spectrum of India-EU relations,” including efforts to finalize agreements on digital trade, semiconductor supply chains, and joint research initiatives.
In addition to his engagement with Michel, Jaishankar held bilateral meetings with European Commission Executive Vice-President Valdis Dombrovskis, who co-chairs the TTC, and Belgian Deputy Prime Minister and Foreign Minister Hadja Lahbib. These discussions were expected to address the resumption of negotiations for a long-pending free trade agreement (FTA) between India and the EU, as well as cooperation on climate action, defense, and counterterrorism.
Why It Matters
The outcomes of this week’s meetings carry significant implications for both India and the EU, as well as for the broader global economic order. For India, the TTC and related engagements offer an opportunity to attract European investment in high-tech manufacturing, reduce dependence on Chinese imports, and position itself as a key player in global supply chains. The EU, meanwhile, views India as a critical partner in its efforts to diversify supply chains away from China and secure access to one of the world’s fastest-growing consumer markets.
The timing of Jaishankar’s visit is particularly notable, coming against the backdrop of geopolitical tensions, including the ongoing war in Ukraine, U.S.-China strategic competition, and disruptions in global trade routes. Both India and the EU have sought to navigate these challenges by strengthening their bilateral ties, with the TTC serving as a key mechanism for aligning policies on issues ranging from semiconductor manufacturing to artificial intelligence.
However, the success of these efforts will depend on resolving long-standing differences, particularly in trade negotiations. While the India-EU FTA talks have resumed after a nine-year hiatus, key sticking points remain, including the EU’s demands for stronger intellectual property protections, labor standards, and environmental regulations, and India’s push for greater market access for its pharmaceuticals, agricultural products, and IT services. Tariffs on automobiles and dairy products have also emerged as contentious issues, with both sides struggling to find common ground.
Background and Context
The India-EU relationship has evolved significantly over the past decade, with both sides recognizing the strategic importance of their partnership. The EU is India’s third-largest trading partner, accounting for nearly 11% of India’s total trade in goods in 2025, while India is the EU’s 10th-largest trading partner. Bilateral trade in goods reached €120 billion in 2025, up from €80 billion in 2020, driven by strong demand for Indian pharmaceuticals, textiles, and IT services in Europe, and European machinery, chemicals, and automobiles in India.
The establishment of the TTC in 2022 marked a turning point in the relationship, providing a structured framework for addressing regulatory barriers and fostering collaboration in emerging technologies. The council’s first two meetings, held in 2023 and early 2024, focused on semiconductor supply chains, artificial intelligence, and clean energy, with both sides committing to joint research initiatives and policy alignment in these areas.
Despite this progress, the broader India-EU FTA negotiations have remained stalled since 2013, when talks collapsed over disagreements on market access, intellectual property rights, and labor standards. The resumption of negotiations in 2024 was seen as a positive development, but progress has been slow, with both sides acknowledging that significant differences remain.
Competing Claims and Uncertainty
While the India-EU partnership has made strides in recent years, several areas of uncertainty and competing claims persist. One of the most contentious issues is the EU’s insistence on incorporating stringent labor and environmental standards into the FTA, which India has resisted on the grounds that such provisions could undermine its developmental priorities. Indian officials have argued that the EU’s demands are overly prescriptive and fail to account for the country’s economic realities, including its large informal workforce and developmental challenges.
Another point of contention is the EU’s push for stronger intellectual property protections, particularly in the pharmaceutical sector. India, which is a major global supplier of generic medicines, has expressed concerns that stricter IP rules could limit its ability to produce affordable drugs, potentially impacting public health outcomes in developing countries. The EU, meanwhile, has sought to balance its commitment to global health with the need to protect the interests of its pharmaceutical industry.
On the technology front, both sides have expressed optimism about collaboration in semiconductor manufacturing, quantum computing, and 6G technology. However, questions remain about the extent to which India can attract European investment in these sectors, given its relatively underdeveloped infrastructure and regulatory environment compared to China and other Asian economies. The EU, for its part, has been cautious about transferring sensitive technologies to India, citing concerns about intellectual property theft and industrial espionage.
What to Watch Next
The outcomes of this week’s TTC meeting and Jaishankar’s engagements in Brussels will be closely scrutinized for signals on whether India and the EU can translate diplomatic momentum into concrete policy actions. Key areas to watch include:
1. Progress on the FTA Negotiations: While both sides have expressed a commitment to concluding the FTA, the timeline for a final agreement remains uncertain. Observers will be watching for any breakthroughs on contentious issues such as tariffs, labor standards, and intellectual property rights.
2. Semiconductor and High-Tech Collaboration: The TTC’s working group on strategic technologies and security is expected to announce new initiatives in semiconductor manufacturing and joint research in quantum computing and 6G. The success of these efforts will depend on India’s ability to attract European investment and address regulatory and infrastructure challenges.
3. Digital Trade and Data Governance: India and the EU have been working to align their approaches to digital trade, including data localization and cross-border data flows. Any agreements in this area could have significant implications for India’s IT sector and the EU’s digital economy.
4. Supply Chain Resilience: Both sides have emphasized the importance of reducing dependence on China for critical supply chains. The TTC’s focus on resilient value chains could lead to new partnerships in pharmaceuticals, rare earth minerals, and clean energy technologies.
5. Geopolitical Alignments: The India-EU partnership is increasingly viewed through the lens of broader geopolitical dynamics, including U.S.-China competition and the war in Ukraine. Observers will be watching for any shifts in India’s stance on these issues, particularly as it seeks to balance its relationships with the EU, the U.S., and Russia.
Conclusion
Jaishankar’s visit to Brussels this week underscored the growing strategic importance of the India-EU relationship, as both sides seek to deepen cooperation in trade, technology, and supply chain resilience. While the TTC has provided a valuable platform for addressing regulatory barriers and fostering innovation, significant challenges remain, particularly in the stalled FTA negotiations and competing priorities on labor, environmental, and intellectual property standards.
For India, the partnership with the EU offers an opportunity to diversify its economic ties, attract investment in high-tech manufacturing, and reduce its dependence on China. For the EU, collaboration with India could help counterbalance China’s dominance in critical supply chains while expanding access to a rapidly growing market. However, the success of these efforts will depend on both sides’ ability to bridge their differences and translate diplomatic momentum into tangible outcomes.
As the India-EU relationship continues to evolve, the coming months will be critical in determining whether the two sides can overcome their divergences and forge a partnership that is both strategic and mutually beneficial. The outcomes of this week’s meetings will serve as an important indicator of the direction in which the relationship is headed, with implications for global trade, technology, and geopolitics.
Story synopsis gathered from: [The Hindu](https://www.thehindu.com/news/national/jaishankar-meets-european-council-president-values-his-role-in-advancing-trade-technology-cooperation/article71224238.ece) — source.
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Story synopsis gathered from: The Hindu – National — source.
