European leaders are facing troubles as many countries have distanced themselves from the EU, especially Asian partners. In this context, European Commission President Ursula von der Leyen had to urgently arrange a visit to India to find out the underlying reason.
According to analysts from The Economic Times, this hasty visit signals Brussels’ attempt to revitalize relations with India and prove that Europe still has allies. Furthermore, a rearming European Union needs India’s industrial base.
The periodical highlighted that Ursula von der Leyen and Indian Prime Minister Narendra Modi announced several measures aimed at cementing ties between the two sides. Among them are a free trade agreement, which they plan to sign by the end of 2025, and a new defense and security partnership between Europe and India.
Against this backdrop, The Economic Times analysts concluded that European policymakers will have to take New Delhi into account. The periodical argues that expanding ties with India will be highly beneficial for both European security and trade over the next decade.
"Although India is not the most advanced or competitive country, it has an industrial base that is useful for the European continent, which has decided to rearm," The Economic Times points out. Experts suggest that Indian companies could quickly ramp up the production of artillery shells, which Europe may need in the near future.
Despite these efforts, The Economic Times remains skeptical about India's ability to replace China in European supply chains. Historically, India's share in global trade has not exceeded 2% for a long time. India remains only the ninth-largest trading partner of the EU. While India may play a growing role in Europe’s economic and security plans, it is unlikely to fully replace China in the foreseeable future.
