FTA can lower reliance on China, Russia, US: EU foreign policy chief

European Commission’s President Ursula von der Leyen is expected to arrive in India Saturday and European Council’s President António Luís Santos da Costa reaches Sunday.

Both are chief guests at the Republic Day celebrations on January 26 and will attend the summit on January 27.

Edited excerpts:

How do you view the arc of India-EU bilateral relations, from the first India-EU Summit in 2000 to the first invitation to EU’s leadership in 2026 for the Republic Day celebrations?

We began with dialogue and cooperation (and) today, we act together on trade, security and technology. The invitation to EU leadership to join Republic Day is a great honour and reflects genuine trust. India is no longer merely an important partner: it is a major strategic partner. This is a qualitative shift.

How does the India-EU FTA strengthen economic relations?

The FTA will create a market for 2 billion people, which accounts for about one-fourth of global GDP. The deal will boost investment and growth, strengthen supply chains and open new opportunities for companies on both sides. It also provides a chance to reduce reliance on China, Russia and the United States. At a time when free trade is under pressure and supply chains are being weaponised, deepening our economic partnership makes perfect sense. This agreement is a strategic choice.

India and EU have also stepped up on defence and security. Can Europe be an alternative to Russian defence equipment?

One only has to watch the news to see that the world is becoming more dangerous, so making the EU-India defence cooperation deeper is a natural step. Both EU and India are increasing defence spending because global events demand it. Next Tuesday, EU and India will sign a new Security and Defence Partnership. It will expand our cooperation in areas such as maritime security, counterterrorism and cyber-defence.

We also want to scale up defence industry cooperation. India is a sovereign nation and will make its own choices about procurement. But one thing is clear: Europe is a reliable partner, Russia is not.

India and EU have had differences over the Russia-Ukraine war, and now India feels that it has been selectively targeted by 50 percent tariffs by the US. How do you respond to those concerns?

Russia’s war against Ukraine poses an existential threat to Europe. Just as India considers its national interests, so does the EU. I have said before that India’s energy and defence ties with Russia cast a shadow over our cooperation. Europe is completely phasing out imports of Russian fossil fuels, because we have learned the hard way that Russia uses energy for political blackmail. Fossil fuel sales remain a major source of income funding its war, so less money for Russia means less war. A world in which borders can be changed by force is dangerous for all of us, including for India. I discuss such issues regularly with my Indian counterparts. These conversations are candid and respectful.

How does the EU view the China challenge, especially its assertive behaviour in the Indo-Pacific as India has faced it along the contested border and its neighbourhood?

Europe has major stakes in the Indo-Pacific, and we are acting accordingly. The EU is a major economic partner for many countries in the region. We also have Security and Defence Partnerships with Japan and South Korea. We all share an interest in keeping the region free, open and rules-based.

When it comes to China, we must acknowledge that our economic decisions directly affect our security. China weaponizes trade, supports Russia’ war in Ukraine and acts aggressively in the South China Sea. While China is a major trading partner, we cannot allow our economic relations to come at the expense of our security. That is why the EU has put in place our own economic security strategy. We have a robust trade defence toolkit, from stronger foreign-subsidy and investment screening to anti-dumping duties. We are also taking steps to better shield critical infrastructure.

How do India and the EU work together on cutting-edge technologies, including Artificial Intelligence, semiconductors and supply chains resilience?

Technology is reshaping the world, and India and Europe have a greater chance to shape that future when we work together. The EU-India Trade and Technology Council can help align our approaches to critical technologies. We can bring policymakers, start-ups and industry together to shape standards and reduce dependencies.

With the US becoming unpredictable as a destination for Indian students and professionals, what is EU’s policy towards Indian students, professionals, businesses and tourists?

Indian students, professionals and entrepreneurs contribute greatly to Europe’s economies and societies. We want to deepen mobility, skills partnerships and ties between our peoples. A strong partnership is not built by governments alone; it is built by citizens. I would want to see closer ties between our peoples.