India-EU ties stronger than ever, FTA breakthrough driven by realism, pragmatism: EU Ambassador

New Delhi, India: EU Ambassador to India, Herve Delphin, has declared the India-EU relationship to be stronger than it has been in recent years. In an interview to ANI, the Ambassador highlighted the deepening partnership as a result of enhanced strategic understanding and comfort between the two nations. Delphin stated that his tenure aimed at comprehensively understanding India and fostering cooperation across various sectors.

He emphasized that a diplomat's role involves representing their country's views and interests while also observing and understanding the opportunities and challenges in the host country.

The Ambassador clarified that the India-EU relationship extends beyond a single sector, encompassing a wide array of industries. He considered the India-EU Free Trade Agreement (FTA), which took nearly two decades to finalize, as the culmination of negotiations that spanned two decades. According to Delphin, the recent negotiations, spanning around three years, were essentially a continuation of the earlier talks, not a new agreement.

He attributed the breakthrough to the pragmatic and realistic approach both sides adopted in identifying their priorities and red lines.

Delphin underscored the strong political support behind the agreement, particularly during a period of heightened global volatility and uncertainty. He noted that the complementary nature of the Indian and European markets, offering each other scale and access to various sectors, facilitated the negotiations. The EU's Carbon Border Adjustment Mechanism (CBAM) was discussed, with Delphin emphasizing that it targeted carbon leakage and incentivized lower emissions.

He clarified that the measure primarily affected specific sectors, such as steel and iron exports to Europe, and that Indian steelmakers producing low-emission steel could potentially benefit from CBAM.

In terms of supply chain resilience, Delphin mentioned that India and the EU shared a common objective of de-risking and enhancing the reliability of global supply chains. The FTA, along with an Investment Protection Agreement and the India-EU Trade and Technology Council (TTC), would act as important enablers for this endeavor.

The Ambassador highlighted specific strategic sectors, including semiconductors, clean technology, pharmaceuticals, and agri-food, where both sides could derive mutual benefits. Delphin also introduced the concept of "blue valleys," industrial cooperation parks or corridors, where European and Indian companies could collaborate on research, innovation, startups, investment, skill development, and joint manufacturing.