Archive · 27 Jul 2026
India and EU Strengthen Ties Amid China Concerns
India and the European Union (EU) are working together to address their shared concerns about China's growing economic influence.
Both regions rely heavily on Chinese goods and face challenges in reducing this dependence.
India has deepened its trade ties with China, despite tensions, while the EU is developing new tools to counter subsidized Chinese goods.
Both sides are exploring ways to cooperate in areas like pharmaceuticals, business services, and supply chains to reduce their reliance on China.
However, they have different perspectives on Russia, with India maintaining relations for defense reasons and the EU viewing Russia's actions in Ukraine as a major concern.
Despite these differences, both India and the EU see value in strengthening their partnership to address common challenges.
India's trade deficit with China has more than doubled to $112.1 billion in FY 2025-26.
The EU is developing new tools to counter subsidized Chinese goods and reduce dependence.
India maintains relations with Russia for defense and strategic reasons, while the EU views Russia's actions in Ukraine as a major concern.
Both India and the EU are exploring cooperation in areas like pharmaceuticals, business services, and supply chains to reduce reliance on China.
The EU-India Free Trade Agreement (FTA) is awaiting ratification and is seen as a foundation for further cooperation.
- Who
- India and the European Union
- What
- Strengthening ties amid concerns over China's economic influence
- When
- Ongoing, with recent developments in June 2024
- Where
- Globally, with focus on India and EU
- Why
- To manage economic and security challenges posed by China
India's Perspective
EU's Perspective
Trade Dependence on China
India's Perspective
India has deepened its reliance on Chinese goods despite tensions, with a significant trade deficit.
EU's Perspective
The EU is developing tools to counter subsidized Chinese goods and reduce dependence.
Russia Relations
India's Perspective
India maintains relations with Russia for defense and strategic reasons.
EU's Perspective
The EU views Russia's actions in Ukraine as a major concern and seeks to limit relations.
- India's Trade Deficit with China
- $112.1 billion (FY 2025-26)
- EU's Trade Defense Tools
- Anti-dumping measures, overcapacity instrument, tariffs
- India's Defense Equipment
- 60% from Russian-origin platforms
- EU-India FTA
- Awaiting ratification
- India's PLI Scheme
- Subsidies for domestic manufacturing