Brussels: what attracted European trading to India , The European Union is planning to enhance cooperation with India in various sectors.
What are the reasons for the Europeans to come?
The second bilateral Trade and Technology Council meeting in Delhi on Friday is expected to feature various announcements related to trade, electric vehicles and artificial intelligence.
European Commission President Ursula von der Leyen will be in Delhi to participate in the meeting.
The European Union has been keen on cooperation with India.
US President Trump’s announcements on tariffs and China’s tough trade practices have created a challenging environment for the global economy.
Following this, the European Union is keen on enhancing cooperation with India, the world’s fifth largest economy and largest consumer country.
While Trump has been focusing on further strengthening the US economically, he has stopped US financial assistance to various countries, including developing countries.
To attract technical assistance to developing countries
This is a great opportunity for China to provide various assistance, including technical assistance, to developing countries and attract them.
In this context, enhancing relations with India not only strengthens the EU’s presence in the Indo-Pacific region, but also provides an opportunity to protect its trade from being affected by the changing economic environment.
Aim to focus on sustainable and inclusive growth
This cooperation between the two sides is expected to focus on stability, economic security, sustainable and inclusive growth in the global trading environment.
More than two years have passed since the first Trade and Technology Council meeting. India’s argument on easier access and regulations for Indian products in European markets has delayed the next round of discussions.
In this context, the aim of the European Commission President, who is coming to Delhi, is to restart the long-pending discussions and quickly implement the free trade agreement with India.
These talks between the two sides provide relief to European automakers.
On the one hand, Trump is threatening China with world-class electric vehicles, and on the other, he is threatening to impose a 25 percent tariff on vehicles imported from Europe.
In this context, S&P has predicted that the Indian automobile market will grow by 6 percent per year for the next five years. It is noteworthy that when there was a similar situation in China in the 2000s, European car manufacturers made high profits.
In addition, the continued increase in the use of electric vehicles in India presents a good opportunity for companies. Improving the charging infrastructure to accommodate the use of electric vehicles is a challenging matter.
For this, it is reported that India and the European Union will announce an investment of 540 crores each.
Agreement
In addition, both sides are interested in artificial intelligence, semiconductors, telecommunications and the creation of a non-Chinese supply chain.
Memorandums of understanding are expected to be signed on chip development, talent transfer and 6G technology.
It is also planned to strengthen cooperation between the European Commission’s AI Office and India’s AI project.
Objectives
Help India deal with the US and China
Protect the EU’s trade
Speed up the implementation of the free trade agreement
A market for European automakers
Create a non-Chinese supply chain in AI, chips and telecommunications.
European automakers were more profitable in the 2000s when China was in a similar growth environment.
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