The EU is preparing to announce the establishment of a new trade and technology council with India as part of efforts to deepen relations and respond to China’s growing economic power.
The new forum could be unveiled during meetings between Ursula von der Layen and Narendra Modi, India’s prime minister, during a visit by the European Commission’s president to New Delhi on Monday, according to a senior EU official.
Von der Layen’s talks with the Indian government will include the sale of European military equipment to India and potential joint ventures as the EU seeks ways to reduce India’s long-standing dependence on Russian defense technology.
They will also cover plans to resume talks this summer aimed at concluding a comprehensive EU-India trade agreement.
The meetings will be overshadowed by the war in Ukraine and India’s refusal to openly condemn President Vladimir Putin’s invasion.
Western governments are hoping to find ways to woo New Delhi from its longstanding relationship with Moscow, citing in part the threat of Vladimir Putin’s “borderless” partnership with China’s Xi Jinping.
Von der Layen’s goal is to find ways to offer India alternatives to its “dependence” on Russia, in areas such as military equipment and fertilizers, the EU official said. “We want to offer even broader relations with India. My feeling is that they are interested in ideas [for] cooperation with us. “
The Trade and Technology Council will build on an existing US-EU model that launched in Pittsburgh last year. However, the transatlantic format has yet to be proven, given the deep differences between the US and the EU on issues such as digital privacy and how difficult it must be to regulate technology giants.
New Delhi declined to comment on the TTC proposal with the EU. The EU spokesman said potential topics on his agenda would include 5G and 6G technologies, privacy regulation and how to control social media platforms. There was also an opportunity to deepen cooperation in the field of digital skills.
Von der Leyen’s visit to New Delhi will be closely monitored, given the division over how to respond to Russia’s war against Ukraine.
The Prime Minister of the United Kingdom, Boris Johnson, openly refused to criticize Modi during his visit this week, instead focusing on areas of co-operation, including the UK’s ambitions for a trade agreement with India.
For his part, Modi reiterated his call for an immediate ceasefire in Ukraine during Johnson’s visit, saying diplomacy and dialogue were needed.
The EU will try to push for ways for India to loosen its dependence on key Russian exports, while reminding New Delhi that it expects its partners to either comply with EU sanctions, or at least not circumvent them.
The issue of Russian oil purchases from India is also likely to be included in the discussions, given the EU’s attempts to give up Russian fossil fuels and reduce Putin’s revenue from oil, coal and gas exports.
The United Kingdom plans to speed up the licensing process through which India is procuring weapons from Britain, as well as more joint military exercises and exchanges of officers.
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