India, EU to launch security, defence partnership, apart from trade deal

Modi will be joined by Costa and von der Leyen in announcing the conclusion of the negotiations for the much-awaited FTA, although the deal will not cover agricultural products, given the sensitivities on both sides about the sector.

New Delhi: India and the European Union are likely to launch a security and defence partnership, in addition to clinching a trade deal, later this month when Prime Minister Narendra Modi will host the 27-nation bloc’s leaders as chief guests at the Republic Day ceremony in New Delhi.

The two sides are also expected to make progress on the proposed India-EU Security of Information Agreement. They will also discuss India’s participation in the security and defence initiatives of the EU, like the Permanent Structured Cooperation (PESCO).

The EU leaders – European Council President António Luís Santos da Costa and European Commission President Ursula von der Leyen – will arrive in New Delhi on January 25 for a state visit to India.

They will join Modi and President Droupadi Murmu in witnessing the military parade on the occasion of the 77th Republic Day on the Kartavya Path in New Delhi on January 26. They will hold the 16th India-EU summit with the prime minister on January 27.

“Participation of EU leaders as Chief Guests at the 77th Republic Day and the 16th India-EU Summit will further deepen the India-EU Strategic Partnership and advance collaboration in priority areas of mutual interest,” the Ministry of External Affairs stated in New Delhi on Thursday.

“Trade, security and defence, clean transition and people-to-people cooperation will top the agenda of the discussions,” the European Council stated in Brussels.

Modi will be joined by Costa and von der Leyen in announcing the conclusion of the negotiations for the much-awaited Free Trade Agreement, although the deal will not cover agricultural products, given the sensitivities on both sides about the sector.

Commerce Secretary Rajesh Agarwal told journalists in New Delhi on Thursday that India and the EU concluded negotiations over 20 out of the 24 chapters of the proposed agreement.

New Delhi’s demand for exemption from the EU’s Carbon Border Adjustment Mechanism for India’s steel and aluminium exports to Europe, however, remained unresolved.

The CBAM ensures that a carbon price is applied to emissions embedded in certain goods imported into the EU nations, and it came into effect on January 1. India is asking for carve-outs in the FTA to shield its exporters from the carbon tax, but the EU has not yet budged.

The 16th India-EU summit is also likely to see progress on the proposed Security of Information Agreement (SOIA), which will remove the hurdles in the exchange of classified and sensitive information.

The SOIA will lay the foundation of stronger cooperation in areas related to security and defence, a source aware of New Delhi’s engagements with the EU told DH on Thursday. The agreement will also clear the way for India’s participation in EU security and defence initiatives.

India is keen to join some projects under the EU’s Permanent Structured Cooperation (PESCO), a framework for joint defence capability enhancement being implemented within the 27-nation bloc.

Modi and the EU leaders are likely to announce a Security and Defence Partnership between India and the bloc. This will enhance strategic consultations and joint initiatives, including on crisis management, maritime security, cyber defence, and counterterrorism, and foster defence industrial cooperation, focusing on boosting production and technological capabilities, securing supply chains, and driving innovation, said the source in New Delhi.