EU-India Relations

Why to study EU-India relations?• Separated widely by geography as well as history, there are, striking

parallels in the recent journeys of the European Union and India

– Similar but unique process of institution-building, with need to balance people’s rights and the need for cohesion

– 2 largest democracies in the world

– Culturally and linguistically, most diverse regions on the planet

– Both had 28 member states(!)

What are some Historical evidence to suggest India-EU relations?

• Historically, EU countries have had interest in India

• English, French, Dutch, Portuguese have all had colonized India in the past

• Silk route, through India – biggest factor in development of civilizations in India.

• In addition to economic trade, the Silk Route served as ways of carrying out cultural trade between the networking civilizations

Why India relations important to EU?

• India is of interest to every country in the world, let alone EU nations. Some reasons attributed to the interest are:

– Population of 1.27 billion. With 65% below 35 yrs. of age, India has the biggest workforce in the world

– Biggest consumer base

– Important player in security and counter-terrorism

– Rate of development

– Democratic, as opposed to communism in China, that holds them back on several fronts(!)

– Cheap labour

– Improved support from Government to foreign investors

– Culturally diverse

Why EU relations important to India?

• One of India’s biggest trade partner

• To support India for a permanent membership in UNSC

• Shares a good portion of history with several EU countries

• Trade and employment from Europe based companies, vital for Indian economy

• Strategic relations with EU is vital in areas of security, environment, climate control, science and technology

EU-India relations: Chronology • 1962: India establishes diplomatic

relations with EEC*

• 1971: EU provides trade supportthrough the Generalized System ofPreferences (GSP)

• 1973: The EU and India sign aCommercial Cooperation Agreementfor marketing support to severalsectors of Indian industry with exportpotential

• 1981: India and the EU sign aCommercial and Economic CooperationAgreement

• 1983: The EU sets up a Delegation inIndia

• 1988: The first meeting of the EU-IndiaJoint Commission

• 1989: Scientific cooperation betweenIndian and the EU is set up infundamental as well as appliedresearch

• 1992: European and Indian industryestablish a Joint Business Forum topromote trade and investment.

• 1993: The first sector cooperation programme is launched in primary education with EU support of €150 mn. to the Indian Government’s District Primary Education Programme (DPEP)

• 1994: EU-India Cooperation Agreement on Partnership and Development upgrades relationship

• 1996: A second sector cooperation programme is launched in the area of health with a grant of €200 mn.

Timeline• 2000: The first EU-India summit is held

in Lisbon, €200 mn. support to India’s Sarva Shiksha Abhiyan

• 2001: The EU and India sign an agreement on Science and Technology Cooperation

• 2004: A Strategic Partnership is launched

• 2005: A Joint Action Plan to implement the Strategic Partnership is agreed to strengthen dialogue and consultation mechanisms, bring together people and cultures, enhance economic policy dialogue and develop trade and investment

• 2006: €160 mn. State Partnership Programme is launched with Rajasthan and Chhattisgarh

• 2008 A Joint Declaration on Education

is signed to facilitate cooperation in higher education

• 2009: A Joint Declaration on Multilingualism is signed between the EU and India.

• 2011: The European Investment Bankprovides a framework loan of €200 mn. to finance projects in the renewable energy sector. The EU and India sign a Joint Declaration on Culture

• 2012: Adopted at the EU-India Summit, a Joint Declaration on Energy foresees cooperation on smart grids, clean coal technologies, nuclear safety and security, biofuels and renewable energy.

• 2012: The EU-India Skills Development Project is launched for vocational education and training.

Strategic Partners

• Both believe in

– democracy,

– human rights,

– the rule of law, and

– the market economy,

but also in inclusive development which promotes the welfare of the have-nots in our societies through progressive public policy

• In 1962, what was to become the EU was the European Economic Community; and relations with India were focused on trade and development.

Strategic Partners

• The opening of the Delegation of the European Commission in 1983 in New Delhi

• 1994: EU-India Partnership and Development Agreement, provided legal basis for cooperation

• Partnership and Development Agreement: – further development and diversification of trade and investment in their mutual interest, taking into

account their respective economic situations

– facilitation of better mutual understanding and strengthening of ties between the two regions in respect of technical, economic and cultural matters

– building up of India's economic capability to interact more effectively with the Community

– support of environmental protection and sustainable management of natural resources

• 2000: First EU-India summit

• 2004: The dialogue between the EU and India has been elevated to that of a Strategic Partnership

Trade and Economic Cooperation• EU is India’s largest trading partner.

• The bilateral relationship is reviewed annually by India – EUSummit at the level of Indian PM and the Presidency of theEU.

• Announcement of Strategic Partnership was made at 5th India-EU Summit held in Hague in November 2004

Generalized System of Preference

• The EU was one of the few WTO members to offer a unilateral Generalized System of Preferences (GSP) to third countries, which in this case includes India

• Since the scheme covers India’s most competitive export goods, it has been one of the largest beneficiaries of the EU’s GSP scheme, with goods worth €17 bn. entering the EU on preferential terms

• India is, by far, the most important source of imports under the GSP scheme. In 2011, the duty foregone by the EU as a result of tariff preferences to India under GSP was over €900 mn.

Investment and Economic Cooperation

• To promote business and research cooperation in the key sectors of energy, environment, biotechnology and transport, the EU has supported the creation of the European Business and Technology Centre (EBTC)

• Over many years, the EU has also offered targeted trade-related assistance to boost India’s competitiveness so it can take greater advantage of the opportunities that the European market represents

• The scope and potential gains of the EU-India partnership are enormous. *

Free Trade Agreement

• The EU and India launched negotiations for a Free Trade Agreement (FTA) in 2007

• In the short run alone, India is expected to gain €5 bn. and the EU over €4 bn.

• The FTA vies for stricter enforcement of Intellectual Property(IPR) and would largely eliminate import duties on both sides. This means, for example, that clothing exported from India to the EU would no longer pay the current applicable tariff of 9.6%.

• Indian agricultural products such as rice would also gain significantly improved market access.

• On the other hand European products like machinery, transport equipment or other industrial products would get better access to the Indian market.

• The EU-India FTA would be one of the most significant trade agreements ever, touching the lives of 1.7 billion people.

Opposition to FTA

Opposition to FTA

• Discuss: Why FTA is being opposed?

Intellectual Property Rights

• The EU’s proposed text on enforcement of intellectual property rights undermines the legitimate interests of poor patients and Indian generic manufacturers.

• The EU is proposing an ambitious enforcement mechanism involving courts, executive authorities, private parties and customs authorities.

• The provisions would widen the scope of actors that could have penalties brought against them and also increase the likelihood that wrongful searches, seizures and legal actions against legitimate suppliers of generic medicines will be carried out.

• These stricter enforcement measures proposed by the EU go beyond the requirements of the 1994 Trade-Related Aspects of Intellectual Property Rights, or TRIPS, Agreement and will negatively affect millions of people relying on affordable generic medicines produced in India

Joint Action Plan• Sixth EU-India Summit on September 2005 endorsed a Joint EU-India

Action Plan.

• Apart from support to the social sectors (like Sarva Shiksha Abhiyan in 2000) sufficient funds are to be provided to support the sectors and actions identified in the Economic, Cultural, Academic and Civil Society sections of the Action Plan

• Funds were earmarked for the following:

– Economic Sectoral Dialogues and Co-operation• Economic Policy Cooperation in priority sectors

• Multi-sector Policy Dialogue Support Facility

– Civil Society and Cultural Exchanges• Civil Society Exchanges including a new Cross Cultural Programme

• Culture Fund

– Academic Exchanges• A continuation of the co-operation in the higher education sector

• EU and Indian Studies Centres

Economic Sectoral Dialogues and Co-operation

• Under the Economic Policy Dialogue and Co-operation section of the Action Plan, enhanced cooperation and dialogue is envisaged in the following sectors: – Trade, Transport, Environment, Energy

– Science and Technology, Space Technology

– Information Society, Pharmaceuticals and Biotechnology, Industrial Policy, Customs Co-operation

– Dialogue on Economic and Financial Matters

– Employment and Social Policy

– Agriculture and Business Dialogue & Co-operation

Economic Policy Cooperation

• The proposed initiatives for Economic Policy Cooperation include the following actions:

• Trade, Industry, and Business Co-operation

• Transport

• Energy

• Environment

Multi-sector Policy Dialogue Support Facility

• Financial support provided to the other sectors of the Action Plan enable the progressive development of enhanced cooperation in these areas.

• These sectors will receive funding either through the 7th Framework Programme or will be included in the multi-sector Policy Dialogue Support Facility.

• Some of them will also receive funding through the respective thematic programmes for external action.

• Depending on the progress made in the period of the first MIP (Multi Annual Investment Policy) (2007-2010), some of these sectors could be considered for more substantial Economic Policy Co-operation actions in the second MIP (2010-2013)

Civil Society and Cultural Exchanges

• Engaging civil society has always been an important pillar in the architecture of the EU India relationship;

• The EU India Round Table and the EC India Cross Cultural Programme (EICCP) are well known examples.

• The Action Plan stresses the importance of intensifying formal and informal interaction between civil societies.

• Funds will therefore be provided for continuing demand driven support to India’s NGO Community, Civil Society, Think Tanks and non-state actors, including media, journalism and social partners.

EU-India Cross Cultural Co-operation Programme

• The EICCP aims at improving

– The support for activities in relevant areas and in particular media, communication, academia and culture,

– The strengthening of cross cultural linkages among civil society institutions and organizations and

– Better understanding of the cultural diversity existing in both regions.

Culture Fund

• Aims to increase awareness and visibility of India in the EU and of the EU in India, through a variety of activities - such as the organization of events, media coverage and other activities.

• Exchange of know-how and expertise in a variety of fields directly related to the culture-oriented events and actions,

• Closer collaboration among institutions, government agencies and other civil society interlocutors.

• A wide array of cultural activities were foreseen in the Action Plan, such as – EU-India Cultural weeks; – support to film festivals cultural weeks and – thematic cultural years to increase awareness of European culture in

India and vice-versa, as well as twinning between European and Indian cities.

Academic Exchanges

• Cooperation between institutions of higher education and the exchange of scholars and students play a significant role in enhancing mutual knowledge.

• Higher Education: – To enhance international cooperation capacity of Indian universities by

facilitating transfer of know-how and good practices in the field of student and academic staff mobility.

– The European Commission will contribute to financing a mobility scheme between European universities holding an Erasmus Charter and Indian universities that will complement existing programmes in the field of higher education. The types of mobility to be funded are: • For students: master, doctorate and post-doctorate mobility opportunities;

• For academic staff: exchanges for the purposes of teaching, practical training and research. Higher cooperation activities will be funded under the regional programming facility for Asia

EU and India Study Centres

• Created with the mutual aim to enhance visibility and knowledge about the European Union in India and vice versa

• European Study Centres and Centres for Contemporary Indian Studies are created in India and the EU, aimed at developing and intensifying academic links, promoting knowledge on both regions and mutual understanding.

• These Centres support joint research, including on topics of common interest as identified in the Joint Action Plan, as well as teach courses on contemporary political and economic themes in the EU and India.

• Support are also being provided to already existing initiatives and entities set-up with similar aims and objectives.

Cooperation in Health Sector

• EU’s sectoral support in healthcare in India was initiated in October 1998

• SIP was an integral part of the Government of India’s National Family Welfare Programme.

• The programme operated at all levels of the system – central, state and district – with an emphasis on decentralization, community involvement in decision making and the capacity development of health service providers.

• The European Union made a contribution of €240 mn. for this time bound programme.

Cooperation in Health Sector

• Today, the EU supports the Government of India’s National Rural Health Mission - focusing on Reproductive and Child Health.

• Contributes €110 mn. with the twin objectives of enhancing India’s progress towards Millennium Development Goal – reducing child mortality and

– improving maternal health through better health service delivery and support to the country’s health systems.

• Programme focuses on: human resource capacity, planning and development, monitoring and evaluation for decision making, and pays close attention to gender issues and the mainstreaming of marginalized groups, including scheduled castes and tribes.

Partners in Research and Development

• The Agreement on scientific and technological cooperation in 2001

• The agreement was renewed in 2007. • The EU-India Joint Action Plan adopted in 2005

also included a significant research and innovation dimension.

• India-EU Ministerial Science Conference in February 2007 in New Delhi: a milestone,

• First time that the Council of the European Union interacted with a partner country outside of Europe.

Partners in Research and Development

• The successful implementation since 2007 of regular coordinated calls for proposals between the EU and India in the fields of – computational materials science,

– food and nutrition research,

– solar energy research and

– water related challenges,

• Total budget of €60 mn. has been co-funded by India and the EU

• India - a key partner in major international projects such as the International Thermonuclear Experimental Reactor (ITER) project.

• In addition, an Agreement for cooperation in the field of fusion energy research signed in 2009

• Implemented by the European Atomic Energy Community (EURATOM) and India’s Department of Atomic Energy

• Works towards better cooperation in peaceful uses of nuclear energy

References

• India, Country Strategy Paper: http://eeas.europa.eu/india/csp/07_13_en.pdf

• Culture in External Relations: http://cultureinexternalrelations.eu/wp-content/uploads/2014/02/country-report-India-26.02.2014.pdf