- Formation:
- The European Union was established in 1993 and is a global entity comprising 27 nations from Europe.
- Following the Maastricht Treaty also known as The Treaty of the European Union (TEU) EU came into force.
- The treaty was ratified by 28 nations, and it entered into force in 1992. Recently Britain exited from the treaty.
- What is it?:
- It is an economic and political bloc, out of 27 countries 19 countries use the EURO as their official currency.
- The EU has developed an internal single market through a standardized system of laws that apply in all member states in matters, where members have agreed to act as one.
Significance for India
- Economic and Trade Relations: The EU is one of India’s largest trading partners, accounting for around 11-13% of India’s trade. Ongoing Free Trade Agreement (FTA) negotiations aim to increase trade by reducing tariffs and improving market access.
- Investment and Job Creation: EU investments support job creation and industrial growth in India, especially in sectors like IT, renewable energy, and infrastructure.
- Strategic and Security Cooperation: India and the EU collaborate on counter-terrorism, cybersecurity, and maritime security in the Indo-Pacific region, sharing intelligence and advancing mutual security goals.
- Climate Change and Renewable Energy: The EU supports India’s green energy transition, including the International Solar Alliance (ISA) and Clean Energy and Climate Partnership, aligning with India’s sustainability goals.
- Digital and Technological Collaboration: EU-India partnerships foster R&D in emerging tech like AI, quantum computing, and digital economy regulations, with the EU’s GDPR influencing India’s data privacy policies.
- Educational and Cultural Exchange: Programs like Erasmus+ strengthen educational ties, while the Indian diaspora in Europe enhances cultural connections and remittances.
- Geopolitical Significance: Both share interests in a stable Indo-Pacific and a multipolar world order, with partnerships in multilateral forums to balance global power dynamics.