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Long-term Gains and Shortfall of PM Modi Europe Visit: Economic and Cultural Perspectives

India and the Europe are committed to working together to develop new standards and standards for international ICT standards from 2015. During the 15th India-EU Summit, the two sides agreed on a major merger of regulatory frameworks through data allocation resolution to facilitate integration – border data flow and participation in discussions on the safe use and conduct of AI and 5G. The EU is a key partner of India trade and both sides have been trying to negotiate a free trade agreement since 2007.  Indo-EU trade (excluding trade in services) stood at $ 104.3 billion for the 2018–19 financial year. During the 15th India-EU summit held around 2020, the Roadmap to 2025 document was adopted. India-EU Summit 16 is scheduled for May 2021. These conference-level summits provided a platform for both India and the Europe to agree or disagree on a number of issues.

Prime Minister Narendra Modi travels to Germany, Denmark and France from May 2 to 4. His first foreign trip this year comes at a time when war in central Europe has improved 70 years of world order.

Germany is one of India’s most important partners in Europe, with deep bilateral relations, and also because of its important role in the European Union. India was among the first countries to establish relations with the Federal Republic of Germany after WWII.

India and Germany have been ‘strategic partnerships’ since May 2000, and have been strengthened by the launch of Inter-Governmental Consultations (IGC) in 2011 at the level of heads of government. India is among the preferred group of countries where Germany has such a negotiated system. During Modi’s visit, the 6th IGC will take place, postponed from last year due to the epidemic. Germany has a new Chancellor, Olaf Scholz, who took office last December. Scholz, a former finance minister, visited India in 2012 when he was mayor of Hamburg. Scholz was the first foreign leader Modi had a telephone conversation with in 2022.

Germany has made important strategic decisions in the Russian-Ukrainian war. It has promised to reduce its dependence on Russia, and decided to increase defense spending – an important move, given its post-WW-II stance. As India relies heavily on Russia for security measures, it will be important for New Delhi and Berlin to exchange notes on strategic decisions – and to leave Russia for their own needs.

Germany holds the G-7 Presidency, and as India takes a different view from Europe by not directly rejecting Russia, it will be important to see if India is invited to the G-7 summit in June.

India and Germany have a common interest in upholding democratic values, international order based on law, and the transformation of international institutions. These issues are expected to be addressed in the negotiations, particularly in the context of China’s vaccination in the Indo-Pacific region.

The bilateral relations were elevated to the level of a “Green Partnership” during the Memorandum of Understanding held in September 2020 between Modi and the Prime Minister of Denmark Mette Frederiksen. Frederiksen was in India on a state visit from October 9 to 11, 2021, the first visit of the Head of State following the epidemic.

India-Nordic Summit: The first India-Nordic summit takes place in April 2018 to explore new areas of cooperation. This format is special; the only country the Nordic countries – Sweden, Finland, Norway, Denmark, Iceland – have this type of communication with the US. Although economic growth, climate change and global security have been identified as key areas for cooperation, the summit comes at a time when the two Nordic countries are looking to join NATO, amid insecurity in Europe.

The Nordic countries are pioneers in innovation, clean energy, green technology, education, health care, human rights, the rule of law – this poses India’s great potential to expand its power through these countries, “Antata Dutta, research. In India Nordic countries, Dutta wrote, “it makes sense to raise their ties, as India today represents a fast-growing economy with annual GDP growth of 7-7.5% over the past few years. India presents a great opportunity for these countries because of its large markets. Many innovative new schemes have been developed by India – such as Make in India, Smart Cities Mission, Start-up India, and Clean Ganga etc., in which Nordic countries can play a significant role and provide their expertise.

A visit to France was arranged after President Emmanuel Macron was re-elected in a difficult election. India and France traditionally had close ties. In 1998, the two entered into a Strategic Partnership, with defense and security cooperation, space cooperation and nuclear cooperation being their pillars. India and France also have strong economic ties, and are increasingly engaging in new areas of cooperation.

France was one of the few western countries not to abandon India after the 1998 Pokhran inspection. It has continued to support India’s claim for full membership of the United Nations Security Council. French support was key to India’s entry into the Missile Technology Control Regime, Wassenaar Arrangement and the Australian Group. France continues to support India’s application to join the Nuclear Suppliers Group.

Following the Pulwama attack in February 2019, France recruited national Pakistani-based ‘international terrorist’ Hafiz Saeed, which was followed by his listing at the UN. France also supported India’s request to block Pakistan’s attempts to register Indian citizens under the UNSC 1267 Sanctions Committee.

The current visit will give the two leaders the opportunity to exchange notes on the Ukrainian crisis, China’s resilience in the Indo-Pacific, and security and security cooperation involving the delivery of Rafale aircraft.

Modi and Macron are among the few world leaders who have maintained open communication channels with Russian President Vladimir Putin and Ukrainian President VolodymyrZelenskyy.

Negotiations with France will also be important as they host the European Union Presidency this year.

India and Europe

PM Modi’s visit shows the importance attached to India-Europe relations. Over the past few years, Europeans have been feeling – in general – the Modi government putting more emphasis on other strategic partners such as the US, Japan and Australia and the UAE, than in Europe.

Over the past few weeks, tensions have risen after the Ukraine war, with foreign ministers from the UK, Poland, Portugal, Luxembourg, the Netherlands, Norway among others and the President of the European Commission visiting India.

Although India in 1962 was one of the first countries to establish relations with the European Economic Community – which preceded the European Union – relations were initially focused on trade and economic cooperation. A Memorandum of Understanding signed in 1994 based on a wide range of relations to include ministerial meetings and political discussions.

These partnerships are expanded to include political and security issues, climate change and clean energy, information and communication technologies, space and nuclear, health, agriculture and food security, and education and culture.Modi’s visit to Europe is likely to set the stage for the India-EU summit and momentum in the negotiations for a Free Trade Agreement, which has been going on for a decade and a half.

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