How to Leverage the EU–India Partnership on Critical and Emerging Technologies?

It seems that the political will to take the relationship between the European Union and India to the strategic level has finally materialized. Following the high-level visit of Ursula von der Leyen and the College of Commissioners to New Delhi in February 2025, the Leaders’ Statement noted that Europe and India now share interests that go beyond just trade and economics. This visit, which was originally planned before the Euro-Atlantic rift became evident, took on a new significance for both sides as they sought to consolidate diversified partnerships in the context of an increasingly unpredictable global order. As India’s Minister of External Affairs, S. Jaishankar, put it during the 10th edition of the Raisina Dialogue in Delhi, "We are all in the midst of an enormous renegotiation."

The EU and India have made clear their intention to finalize the decade-long negotiations for an EU-India Free Trade Agreement (FTA), even while India pursues parallel trade talks with the UK and the US through the India-United Kingdom (UK) FTA and the India-US Bilateral Trade Agreement (BTA), respectively. However, consultations between the EU and India now extend to areas far beyond trade.

A shared focus on critical and emerging technologies (CETs) has emerged as a cornerstone of EU-India engagement. This includes semiconductor and 6G ecosystems, Artificial Intelligence (AI), Digital Public Infrastructure (DPI), high-performance computing, and space. Technology transfer in the digital and green industrial transitions, including potential dual-use components, is further embedded in the three working groups of the EU-India Trade and Technology Council (TTC). Originally established to address key trade, technology, and security challenges, the TTC had its inaugural session in May 2023 and recently held its second meeting in Delhi as part of the official EU visit. However, the question remains: Going forward, what would it take to fully harness the potential of the EU-India partnership on CETs?

US-India Cooperation on CETs as a Model for the EU

Despite ongoing disruptive shifts in the international order-including those stemming from the second Trump administration-the US-India relationship has so far been advancing steadily. Prime Minister Modi was the fourth world leader to visit President Trump after he took office in January 2025, and substantial agreements on CETs were reached during his visit, adding to the Initiative on Critical and Emerging Technologies (ICET) launched in May 2022 during the Biden administration. ICET was conceived as a unique framework for enabling technological and economic cooperation between the US and India. Although there are conceptual similarities between ICET and the EU-India TTC, there are vast differences in terms of operationalization and eventual impact. From New Delhi’s perspective, India’s techno-strategic relationship with the US is the model the EU should seek to emulate.

In both instances, technology is being associated with security and trade, further linking them to resolving any licensing and regulatory issues that may stand in the way.

In the case of the India-US partnership, ICET proved to be a crucial catalyst for the integration of both partners’ technology and defense supply sectors in their quest for secure, reliable, and cost-competitive strategic technologies. ICET encompasses a broad range of strategic sectors, including AI, space, semiconductors, advanced telecommunications, quantum computing, biotechnology, critical raw materials, and clean energy. Furthermore, the initiative covers the establishment of "Innovation Bridges" in key sectors through exhibitions, hackathons, and pitching sessions. Ultimately, it aims to promote the integration of both countries’ private sectors and start-ups, as the examples of AI and the defense sectors illustrate.

ICET has further included the US-India Defense Acceleration Ecosystem (INDUS-X) platform, designed to strengthen strategic technology alliances in deep-tech innovation and closer defense industrial cooperation. INDUS-X successfully brings together actors from across government, industry, and academia in both countries. Specific units within India’s Ministry of Defence (Innovations for Defence Excellence - IDEX) and the US Department of Defense (Office of the Secretary of Defense - ODS) were assigned to lead INDUS-X, making progress actionable and reviewable. The contributions of investors, researchers, start-ups/SMEs, and accelerators/incubators were followed by a Senior Leaders Forum, together with a Senior Advisory Group. Moreover, INDUS-X was allowed to participate in multilateral forums such as the QUAD.

The idea was for ICET to further pave the way for US-India defense industrial cooperation against the background of key existing US-India foundational defense agreements stemming from the 2013 Joint US-India Declaration on Defense Cooperation and the 2015 Framework for the US-India Defense Relationship. ICET is also, however, the product of decades-long investment by US businesses in India’s defense ecosystem. The aim is now to expand defense sales and co-production with India to strengthen interoperability and industrial cooperation under a new ten-year Framework for the US-India Major Defense Partnership in the 21st Century, to be signed later this year.

During Prime Minister Modi’s recent visit to Washington, DC, both partners signed the US-India Catalyzing Opportunities for Military Partnership, Accelerated Commerce & Technology for the 21st Century (COMPACT) initiative, meant to bring about transformative change across key pillars of cooperation. Within this umbrella, the launch of the US-India Transforming the Relationship Utilizing Strategic Technology (TRUST) initiative specifically aims to catalyze government-to-government, academia, and private sector collaboration when applying CETs in areas such as defense, AI, semiconductors, quantum computing, biotechnology, energy, and space while ensuring that sensitive technologies are protected.

AI has become a substantial part of TRUST. The aim is to enable industry partnerships and investments in AI development and innovation while reducing regulatory barriers. In addition, the launch of INDUS Innovation, modeled after the successful INDUS-X platform, was announced. This will seek to advance US-India industry and academic partnerships while fostering investments across space, energy, and other emerging technology sectors. The Trump administration is currently supporting India’s full membership in the International Energy Agency (IEA) while seeking to move forward with plans to build US-designed nuclear reactors in India as part of the US-India 123 Civil Nuclear Agreement from 2008.

Practically speaking, this implies that India must create data center authorization programs and secure individual Bureau of Industry and Security (BIS) licenses to engage with US companies in AI to implement safeguards against Tier 3 country interference-that is, against countries such as China, Iran, North Korea, and Russia.

Thus, it is crucial to note that the above agreements were reached in the context of the recognition of India as a Major Defense Partner with Strategic Trade Authorization-Tier 1 (STA-1) status since 2018 and a key QUAD partner. This has helped diffuse both partners’ concerns over the sale of co-developed or co-produced products subject to the national export control laws and regulations of each country as well as their intended end uses. In addition, India and the US entered into a Security of Supply Arrangement (SOSA) in August 2024, allowing each country the power to request priority delivery of certain defense items from the other in the event of unanticipated supply chain disruptions. A Reciprocal Defense Procurement (RDP) agreement has yet to be signed, but negotiations have been launched.

What Can the EU Learn from This?

One must be wary of drawing lessons from the relationship between the US and India, particularly when attempting to extrapolate them to a political and supranational construct like the EU. Let us not forget that the EU is formed by twenty-seven nation states operating at different speeds in particular competencies such as labor mobility and monetary integration into the euro area. In addition, the bulk of EU competencies are not exclusive to the grouping but are either shared with the grouping by Member States or receive support from the EU while keeping the last word. To complicate matters even more, the EU’s Common Foreign and Security Policy (CFSP) is considered a special competency largely in the hands of Member States under the supervision of the President of the Council and the High Representative of the Union for Foreign Affairs and Security and Vice-President of the European Commission (HR/VP).

This division of competencies further feeds into the reality that certain Member States-in particular France and Germany-are ahead of the game in developing a solid strategic bilateral relationship with India. Paris is on the way to consolidating its Defence Industrial Roadmap from 2024 based on cooperation with New Delhi on air and maritime assets, including the joint co-production of defense equipment. The launch of the France-India Defence Startup Excellence (FRIND-X) in 2024 closely emulates the case of INDUS-X. There is strong potential for collaboration in other critical technology sectors such as nuclear energy, space, and AI, as demonstrated by France’s highly symbolic co-chairing of the international AI Action Summit.

While France has become India’s top European security partner, Germany leads the way commercially speaking. Berlin was New Delhi’s largest trading partner in Europe and India’s seventh-largest FDI investor in 2022. Germany has high expectations of India, particularly when it comes to the corporate sector, with 78 percent of German companies in India expecting to increase their revenues and 55 percent their profits according to a 2024 survey. In addition, Germany also aims to become a "reliable security partner" for India, which includes arms cooperation and the co-production of defense equipment between companies.

This is even more the case against the backdrop of the current conjuncture as Europe is reluctantly pushed toward a potential trade war with the US, and a leap forward in its joint defense is becoming imperative. Europe is not alone in this, however: New Delhi is also bracing itself after the Trump administration announced 26 percent import tariffs on India. New Delhi still hopes for exceptional treatment thanks to the ongoing BTA negotiations while it seeks to counterbalance Beijing’s global economic and security weight. Technology today is deeply embedded with trade, defense, and security.

Therefore, the siloing of the three working groups within the EU-India TTC is artificial and not necessarily conducive to cross-fertilization across both partners’ shared interests in emerging technologies. Against the backdrop of an EU-India FTA agreement in the process of being finalized in the coming twelve to eighteen months, there is a need to integrate additional aspects of EU-India joint commercial interests into the TTC and vice versa. Bilateral EU-India trade is happening in the digital realm based on digital trade principles-as opposed to rules-due to the lack of an existing FTA. This would imply more fluid communication between DG CNECT and DG TRADE, for example, as part of the digital and trade dimensions of the TTC.

A substantial part of ICET’s success has been based on its advancement of the US-India defense relationship, which both partners have built across decades and beyond the institutional level and in which industry has played a key role. The engagement of the whole ecosystem has become a crucial aspect of the success of the INDUS-X platform, which has now been expanded into INDUS Innovation. This has meant engaging with the private sector, government, researchers, and investors throughout the whole process. We have seen how the EU’s Next Generation Internet (NGI) was successful in mobilizing investment in technology thanks to European Commission funding and to independent entities operationalizing the projects; this has further led to cooperation with the US and Canada. There are now proposals for expanding the initiative to include a "Public Technology Fund" working together with a Public Digital Infrastructure Agency.

More of this ecosystem-building should happen across key strategic sectors within the TTC, thereby bringing together interested governments, industry players, researchers, and investors across the EU through a process of public procurement. A good starting point would be those areas where mutual interest has become tangible as per the second TTC meeting in Delhi-namely, AI, semiconductors, 6G technologies, DPI, high-performance computing, and the production of renewable hydrogen and recycling of batteries for electric vehicles.

It is not enough to sign MoUs such as that between the EU 6G Smarts Networks & Service Industry Association and the Indian Bharat 6G Alliance. The institutional intent, even if it stems from the highest level, must be combined with functional bodies that support the operationalization process. Issues of interoperability and standards-setting came up as requiring special attention, particularly in connection with DPI (e.g., the mutual recognition of e-signatures) as well as IT and telecoms. Allowing the private sector to get involved with policy-making from the start may well facilitate this process, particularly taking into account India’s techno-nationalist approach and Europe’s increasing openness in this regard.

These will build on the progress made through R&D collaboration on high-performance computing (HPC) applications in the areas of natural hazards, climate change, and bioinformatics. India’s pledge to support the GANANA Project, a new EuroHPC project that seeks to support the development of software for HPC applications based on the joint collaboration of European HPC Centers of Excellence and five Indian institutions, is another positive development. The project will be running on combined EU and Indian funding.

There was also tangible progress in the field of semiconductors linked to joint R&D in chip design and heterogeneous integration, together with the strengthening of the EU-India semiconductor ecosystem to enhance technological capabilities and ensure supply chain resilience. This includes an agreement on a dedicated program to promote talent exchanges and foster semiconductor skills among students and young professionals. The need to explore the mutual recognition of certifications and to promote legal pathways for mobility by skilled professionals was further discussed in alignment with India’s vision of a "global workplace."

In addition, it would be helpful to have an assigned set of senior leaders from the relevant Directorates General (DGs) of the European Commission, as well as from the European Council and the HR/VP’s Cabinet, supervising the progress of the TTC and its implementation. This needs to happen at both the senior and the operational levels to ensure that the EU’s strategic vision trickles down effectively to its operating partners, including research institutions, industry, and investors. This will also facilitate engagement with Indian counterparts, who often find themselves at something of a loss in the EU’s bureaucratic maze.

India’s rich experience in creating an Information Technology (IT) and digital ecosystem that brings together the public, private, and academic sectors through the government and its National Information Utilities (NIUs) institutions, combined with the country’s prestigious Indian Institutes of Technology (IITs) and vibrant start-up scene, is worth tapping into. Similarly, the EU and India could consider triangulating with jointly trusted partners such as Australia or Japan in the joint development of tech partnerships.

Unfinished Business

According to the Joint Leaders’ Statement of February 28, 2025, there is additional EU-India interest in intensifying cooperation in space and geospatial sectors, as well as in defense. The intention to explore a security and defense partnership was specifically noted. This explains India’s interest in launching negotiations for a Security of Information Agreement (SoIA) that may, in the mid-/long-term eventually allow New Delhi to join the EU’s Permanent Structured Cooperation (PESCO) projects. There is mutual interest in maritime security and maritime safety cooperation across the Indo-Pacific, for example-the challenge will be for the EU to manage to elevate this above the Member State level.

There are ongoing joint defense procurement projects undertaken between Indian and European companies at the bilateral level-the joint production of aircraft for India’s Air Force by Airbus Spain in cooperation with Tata Advanced Systems Limited is a case in point. Why not seek to recreate this at the EU level at a time when a joint EU defense force is more necessary than ever? The EU has just joined India’s Indo-Pacific Oceans Initiative (IPOI), whose seven pillars are distributed across a number of partners that already include France and Italy among EU Member States, as well as Australia and Indonesia.

Similarly, interoperability remains a major hurdle. Efforts to better align regulatory and standards-setting that affect data protection and intellectual property concerns will have to continue to be a work-in-progress. Even here, a great deal can be learned from contemporary developments in the US-India defense and security relationship.

Conclusion

Research, innovation, and the joint development of CETs across key strategic sectors represent one of the most promising avenues for EU-India cooperation. While notable differences exist, the US-India partnership can serve as a valuable reference point for the EU’s own efforts to deepen its strategic ties with India. More importantly, the current momentum must not be overlooked. The confluence of US-China competition, ongoing tensions between the US and Europe, and India’s ambition to integrate into global critical supply chains across the Indo-Pacific create a unique window of opportunity for EU-India strategic engagement to flourish.

Copyright image : Money SHARMA / AFP