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Building capacities: On India and Europe trade talks
The security breach where a Khalistani protester approached External Affairs Minister S. Jaishankar’s car in London overshadowed the headlines on his week-long visit to the United Kingdom and Ireland. The Ministry of External Affairs (MEA) made its displeasure clear to the British government. However, the scheduled visit was not changed, and Mr. Jaishankar side-stepped the scare, announcing that India-U.K. relations were set for a “very big pickup” despite their complex history and current problems.
India-UK Trade Talks and Expanding Diplomatic Presence
India is expanding its diplomatic presence in the U.K. with the establishment of two new consulates in Manchester and Belfast. Mr. Jaishankar’s extended talks with U.K. Foreign Secretary David Lammy focused on the much-delayed conclusion of a Free Trade Agreement (FTA). The Agreement, initially expected to be completed after Brexit in 2020, has missed multiple deadlines.
India-Ireland and India-EU Trade Negotiations
Talks over an FTA were also a major topic in Ireland, coming just days after India and the European Union (EU) committed to concluding their Bilateral Trade Agreement (BTA)—for which negotiations began in 2007—by the end of 2025.
Bilateral trade figures indicate underperformance, with U.K. ($52 billion) and Ireland ($17 billion) trade levels far below their potential. Discussions in both capitals focused on enhancing collaborations, particularly in high-tech trade.
Impact of India’s Trade Policy Adjustments
The India-U.K. FTA talks (restarted last month) and India-EU FTA talks (another round scheduled this week) will benefit from India’s conciliatory position on import duties with the United States, which has been a sticking point in negotiations.
The Indian government’s decision to reduce tariffs on wines and spirits, motor, and electric vehicles, in response to U.S. President Donald Trump’s demands, is a key example. Further tariff cuts are expected as part of negotiations for an India-U.S. BTA.
Europe’s Strategic Realignment and India’s Opportunity
Mr. Jaishankar’s visit followed high-profile engagements with Europe’s leadership, including:
(i) A high-power EU delegation led by European Commission President Ursula von der Leyen.
(ii) A senior ministerial and business team led by Belgian Princess Astrid.
These engagements reinforce the perception that Europe is actively seeking new and more reliable partners.
Geopolitical Shifts and India’s Diplomatic Leverage
Mr. Jaishankar’s visit came shortly after a dramatic showdown at the White House between President Trump and Ukrainian President Volodymyr Zelenskyy. This confrontation led to an urgent summit of non-U.S. NATO countries in London, where U.K. Prime Minister Keir Starmer committed to supporting Ukraine with a “Coalition of the Willing.”
As geopolitical and geo-financial calculations are being reworked across the Atlantic, India stands to gain from accelerated diplomacy and by extending a hand of friendship to both sides.
Disclaimer:
This analysis is based on the editorial content published in The Hindu and is intended solely for informational and educational purposes. The views, opinions, and interpretations expressed herein are those of the author of original article. Readers are encouraged to refer to the original article for complete context and to exercise their own judgment while interpreting the analysis. The analysis does not constitute professional advice or endorsement of any political, economic, or social perspective.
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