Lots of smiles, lots of handshakes, lots of kind words: European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi conveyed a very harmonious image of the state visit to India’s capital, Delhi, in Monday morning, in front of the television cameras. But there are also delicate issues on the agenda – such as India’s position in the Ukraine war. The government has not yet condemned the attack by the Russian army and is not involved in sanctions.
Von der Leyen later raised the issue of sanctions in a speech at a conference: “We urge all members of the international community to support our efforts towards lasting peace,” she says, without naming India as a recipient. Despite such issues, this visit is far less tense than the EU-China summit four weeks ago.
India’s neighbor and main rival, China, also refuses to act against Russia. After von der Leyen’s talks with Beijing’s top government, there was no joint declaration or new joint projects – a diplomatic expression of the icy relationship. It’s different with India: Von der Leyen and Modi agree to create a trade and technology council, and stalled negotiations on a trade agreement must resume. The EU has been India’s third most important trading partner, says von der Leyen: “But we can do much more; our trade is far below our potential.”
The EU’s calculation is to tie the world’s most populous democracy, with nearly 1.4 billion people, closer to Europe – and thus reduce Russia’s influence. British Prime Minister Boris Johnson visited Modi last week on a very similar mission. Until now, India has depended on Russia for weapons, among other things. However, manufacturers in India are expected to produce more in the future. They need Western partner companies for that, and the EU is happy to help here.
One consideration: common standards, e.g. for mobile communications
The new Trade and Technology Council, meanwhile, aims to facilitate business in the technology sectors. Furthermore, Brussels and Delhi want to coordinate in the competition for global standards. The EU and India are “natural partners” when it comes to setting global technology standards, says von der Leyen: “We share many values”, for example that “technology should strengthen individual freedom rather than the ability to control the State” – a jab at India’s rival China.
India and the EU recognize that it is better to develop standards together, for example, for fast 5G mobile phone technology, rather than looking for their own solutions, adds the German. Furthermore, EU groups are important customers for outsourcing providers in India. If there were coordinated data protection rules in the EU and India, this business could still grow – “with immense advantages for European and Indian companies”, promises von der Leyen.
So far, India has not established a trade and technology council with any other country or economic bloc to exchange and vote on these issues. The EU, on the other hand, established this body last year with the US. Experts from both sides meet there in various working groups. Von der Leyen and Modi left it open when the Indo-European Council will start and what structures and members it will have.
It is also questionable whether and what progress can be made in negotiations on a trade deal, which is due to resume in June. India has traditionally been skeptical of free trade.