Europe’s regulations must ease for India to score on trade with it

New Delhi should press beyond the trade pact to resolve challenges such as its unfair carbon tax

- R.V. ANURADHA

It was a momentous day: 27 January saw the signing of the EU-India Security and Defence Partnership, conclusion of trade negotiations for the India-EU free trade agreement (FTA), adoption of an MoU on an EU-India Comprehensive Framework on Mobility, launch of negotiations on a Security of Information Agreement and endorsement of a EU-India Education and Skills Dialogue. Close on the heels of India’s Republic Day celebrations, where EU representatives were state guests, this was a moment of high symbolism in the shifting tides of global geopolitics. Prime Minister Narendra Modi hailed it as a “tide-turning moment” and start of a new era for India-EU relations. The FTA has been hailed as the “mother of all deals” by both sides.

The EU and India are moving towards cooperation through trade, defence and security partnerships at a time when international rules are being undermined and rewritten. Underlying this is the recognition that trade and economic security are intrinsically linked with peace, security and defence. The uplifting spirit of this moment must be carried forward to ensure that it works well for both India and Europe. This requires addressing the real impediments and challenges on both sides in a sustained and committed manner.