Archive · 10 Sep 2026
Report Urges EU to Follow UK’s India Trade Strategy
The European Union buys many important goods and materials from China.
The report says this dependence can make it harder for Europe to act independently.
It points to the United Kingdom as an example of a country trying to build more trade relationships elsewhere.
India is suggested as an important partner for Europe.
India could provide or produce more electronics, medicines and textiles.
The report says Europe should not try to replace China all at once.
Instead, individual European countries could start small projects with Indian states.
If those projects work, the partnerships could later grow across Europe.
A report says the European Union’s dependence on China creates economic and strategic vulnerabilities.
It argues that the United Kingdom has begun diversifying trade and investment ties, offering a model for Europe.
India is presented as a potential partner because of its workforce, industrial growth and manufacturing capacity.
The report highlights electronics, pharmaceutical ingredients and textiles as promising sectors for cooperation.
It recommends that individual EU member states begin with partnerships involving two or three Indian states before expanding more broadly.
- Who
- The European Union, the United Kingdom, China and India are the main parties discussed.
- What
- A report urges the EU to reduce its dependence on China by diversifying trade and investment ties, especially with India.
- Where
- The proposal concerns trade between the European Union, the United Kingdom, China and India, with potential cooperation involving Indian states such as Tamil Nadu, Karnataka and Gujarat.
- Why
- The report says dependence on Chinese supply chains creates economic and strategic vulnerabilities and can limit Europe’s independence on foreign policy and trade issues.
- Main concern
- The EU relies heavily on China for goods, raw materials and supply chains.
- Suggested model
- The United Kingdom’s approach to diversifying trade and investment ties.
- Proposed partner
- India, because of its scale, workforce and growing industrial base.
- Priority sectors
- Electronics, active pharmaceutical ingredients and textiles.
- Indian manufacturing hubs
- Tamil Nadu and Karnataka are highlighted for electronics, while Gujarat and Tamil Nadu are noted for textiles.
- Recommended approach
- Start with selected sectors and partnerships between individual EU member states and two or three Indian states.
- Trade vulnerability
- The report cites China’s use of export controls, including controls involving tungsten.