More than ever before, rapid unfolding of the current geopolitical uncertainties underlines the interdependence of trade, global value chains with sustainable business and climate action. For the European Union (EU) and India – two natural partners and allies in trade, technology and climate change, this interconnectedness presents new avenues as well as the accompanying contrapunto.  Board room conversations and international policy discourse have moved beyond mere trade and economic issues, to include a focussed thrust on climate resilience, inclusive growth, de-risked supply chains, sustainable consumption and responsible business. This is exemplified in the evolving relationship between EU and India over the years, wherein sustainability and climate have carefully and gradually emerged as defining aspects accelerating the parleys. The collective endeavour of EU’s Competitiveness Compass and India’s Atmanirbhar Bharat provide support to this partnership through trade, economic security, green and digital transitions. This can be sufficiently amplified by the EU’s Global Gateway and India’s growing role as a development partner for the Global South.

Relations between the European Union (EU) and India have been evolving from the early economic cooperation of the 1960s with India having emerged as one of the first nations to establish diplomatic ties with the European Economic Community (EEC) in 1962.

Even as the EU-India Cooperation goes back to the 1960s, it has witnessed significant milestones over the last couple of years in a closely developing strategic partnership, which culminated with the EU-India FTA announcement in January 2026. Given the dynamic footprint of EU businesses in India, the formation of the Federation of European Business in India (FEBI) and the significant visits by President Ursula von der Leyen along with the college of commissioners as well as President of the European Union Council, Antonio Costa and the High Representative/Vice President, Kaja Kallas, has been a clear indication of the increasingly important role of EU & Indian business partnerships fuelling both economies and fostering ties between the peoples in both regions.

The strengthening of this partnership comes at a time when international collaboration and multilateral cooperation have emerged as important breakwaters to strengthen understanding between nations on geopolitical alliances, peaceful negotiations towards conflict resolution, responding to global challenges etc., all of which are important ties of diplomacy which translate to sustained economic prosperity and trade relations.