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India-EU Trade Deal Counters Weaponized Interdependence, Boosts Resilience

The India-European Union free trade agreement represents a strategic partnership extending far beyond simple tariff reductions. It is framed as a response to the era of "weaponized interdependence," where great powers exploit economic dependencies. The deal aims to build joint resilience in supply chains and advance cooperation in critical areas like semiconductors, AI, and digital infrastructure. For India, it signals a commitment to becoming a top-tier economic power without compromising its traditional political non-alignment.

Key Points: India-EU FTA: A Strategic Move Beyond Trade

  • Cuts tariffs on 97% of EU goods
  • Builds trusted supplier ecosystems
  • Advances cooperation on AI & semiconductors
  • Maintains India's political non-alignment
2 min read

India-EU trade deal signals geoeconomic strategy to counter 'weaponised interdependence'

New India-EU trade deal cuts tariffs, builds supply chain resilience, and advances tech cooperation to counter economic weaponization.

"middle powers must build resilience together without abandoning values - Euronews report"

New Delhi, Jan 30

The India-European Union free trade agreement reflects a shared assessment that "more is at stake than trade alone" and signalled openness on negotiated terms in an era of "weaponised interdependence", a report has said.

The report from Euronews said the deal goes far beyond tariffs when "great powers are increasingly weaponising tariffs and exploiting supply-chain dependencies".

The agreement reflects the logic that "middle powers must build resilience together without abandoning values."

"For India, the agreement is a signal of seriousness about becoming a top-tier manufacturing and services power without surrendering its political non-alignment," the report mentioned.

Further, it maintained that if Europe wants this deal to be more than a headline, it needs to treat the progress of deal with measurable milestones for market access, cooperation on top transition challenges in energy and industry, as well as steps towards tech and supply-chain partnerships.

"An FTA can only set the framework and it is crucial to build cooperation at the company level and across key geo-economic industries," it reminded.

The FTA cut or eliminated tariffs on 97 per cent of EU goods exports to India and preferential access for 99 per cent of Indian exports by value.

The report added that red lines were crossed and concessions accepted, noting European car tariffs will remain at 40 per cent while India agreed to phased elimination of duties on key industrial goods.

Europe is under enormous pressure to diversify economic ties, and the FTA marks a good start to what should become a year of more strategic partnerships, the report said.

The EU-India Trade and Technology Council is already advancing work on semiconductors and interoperability of digital public infrastructure, among other areas.

The report called the trade agreement to make trusted supplier ecosystems and joint R&D pathways operational. Closer cooperation on AI and trusted data sharing could help to develop alternatives to both US and China-dominated approaches to AI, it noted.

- IANS

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Reader Comments

P
Priya S
Good news for our exporters! 99% preferential access is huge. I hope this translates to more jobs in manufacturing and services. The government must ensure MSMEs also benefit and aren't left behind by big corporations.
R
Rohit P
Keeping car tariffs at 40% was a smart move to protect our auto industry. We've seen what happened with other FTAs in the past. Phased elimination on our terms shows we negotiated well. Jai Hind!
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Sarah B
The report rightly points out that the deal is more than headlines. The real test will be implementation and those "measurable milestones". Hope it leads to tangible tech transfer and co-development, not just market access.
K
Karthik V
Building an alternative to US and China-dominated AI is the most exciting part. If India and EU can create a third, values-based pathway for critical tech, it will be a game-changer for the world. Let's hope the cooperation on R&D is deep and genuine.
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Nikhil C
A respectful criticism: We've signed many FTAs before. The key is execution. The government needs a clear, public dashboard to track these "measurable milestones" for market access and tech partnerships. Transparency will build trust and hold both sides accountable.
M
Meera T

We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.

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