The absence of India-EU FTA is the biggest impediment to a dynamic, economic and trade relationship given that the European Union today is India’s largest trading partner. This is an issue that needs to be addressed on a priority basis.
EU ban on some pharmaceutical products has impacted Indian pharmaceutical industry. The ban had also led to India deferring the negotiations on the proposed bilateral Free Trade Agreement (FTA).
The key concerns of EU relating to trade and commerce with India are India’s protectionism to automobile sector, India’s Intellectual property regime with the provision of compulsory licensing and manufacture of generic medicine, duty and tariff protection in areas of wine ,spirits and dairy products, civil nuclear energy generation legislation.
The key concerns for India are European Union’s heavily subsidized agro industry this could hurt Indian farmers,EU Import restriction like ban on the import of mangoes from India, Work visa restriction – movement of skilled professionals and technology transfer issues.
Based on current standard of protection to data in India the EU refused to grant the status of Data Secure Nation. Data secure nation needs to protect the important data related to innovation, research, individual details, IP etc. to be safeguarded. This affects the operating costs and competitiveness.
EU allegations of Human Rights violations concealed funding to NGOs in India and recent legal proceedings regarding Italian marines have been affecting India-EU ties.
Assessment
India has sought to engage and build bridges with European Union and the Commission. The policy has brought rich dividends and should be further strengthened.
The dynamic economic order needs India to play a more assertive role in terms of trade and economic reforms necessary for enhanced cooperation with developed countries.
Since India’s role is getting increased on international arena with push for significant reforms in UNSC, India needs to partner with EU. Also, this becomes important with Chinese increased interventions around India so that India may ply for assertive dynamic world order.
Q. In the context of recently held 14th India-EU summit explain the India-EU relations and issues affecting their historic ties.
