New beginning for a transformed world

The India-EU FTA comes ata time ofa hostile and disruptive trade environment. It can bring significant economic benefits for both

- Jawed Ashraf

Few visits during a Republic Day parade (and few summits) have been as consequential in symbolism and substance as the visit of this year's chief guests, European Union EU) Council president Antonio Costa and Commission president Ursula von der Leyen (and the India-EU_ Summit the following day).

A rare, clear, cool and sunny morning on Republic Day resembled an early spring morning in Europe. Amidst the dark geopolitical clouds, it might have well been a reflection of PM Narendra Modi’s description of the moment, as the “beginning of a new era”, and the repeated echo ofa new beginning by the visiting leaders.

As the two EU leaders watched the marching military contingents, including from the EU, in the Indian Capital, they signalled a new EU recognition of the salience of power in the world, not justofrules. And that Europe, buffeted by three major powers, is prepared to build new partnerships, with India at the centre, not at the periphery. For India, the visit senta message of preference for action over arguments. Itwas a. high point in the evolving strategy of diversifying strategic and economic partnerships in response to geopolitical turmoil and trade disruptions.

The visit resulted in major outcomes and a roadmap. Political goals and defence and security partnership will be important, but realism suggests limits to their global impact. Within the broad framework of convergences, both the EU and India face complex peripheries, major power challenges, and occasionally competing, ifnot conflicting, objectives.

However, the defining — indeed, the transformative —outcome is the India-EU Free Trade Agreement (FTA), the largest and the most comprehensive that India has so far signed. There is optimism because success has comeafter along history of vast gaps in ambitions, rigid positionsand multiple failures; it comes at a time of a hostile and disruptive trade environment; and it can bring significant economic benefits for both.