India-European Union Trade & Tech Council (TTC)
Recently, India and the European Commission have agreed to set up the India-EU Council on Trade and Technology (TTC).
- The Trade and Technology Council (TTC) will act as a strategic coordination mechanism between the two sides. The council will help both the partners to address the challenges faced in terms of trade, reliable technology and security.
- At the same time, it will further improve cooperation in these areas between the European Union and India. This is the first time India has entered into such an agreement with any party. This is the second such agreement for the European Union. The EU has entered into a US-EU TTC agreement with the United States in the year 2021.
- India’s such partnership with the EU reflects India’s growing political importance in this uncertain global strategic environment.
The Trade and Technology Council (TTC)
- It will provide political level supervision to India-EU relations.
- It will pave the way for an early and comprehensive India-EU trade and investment agreement by bridging economic differences.
- Will make India-EU a political ally to deal with the current challenges and geopolitical situation. An example of this is the Indo-Pacific region.
- G20 will bring better coordination on issues of mutual interest in multilateral platform like WTO etc.
- Relations between the two sides date back to the 1960s. India is one of the first countries to establish diplomatic relations with the European Economic Community (EEC).
- The EU as an organization is India’s largest trading partner.
- In 2004, bilateral relations were extended to ‘Strategic Partnership’.
- In the year 2020, “India-EU Strategic Partnership: A Roadmap to 2025” was adopted.
Factors giving direction to India-EU relations at present –
- Changing geopolitical developments like Russo-Ukraine war, rise of China, US withdrawal from Afghanistan etc.
- India and EU have common interests in the Indian Ocean. This is because the Indian Ocean is a major route for world trade and energy transport.
- A new world order is emerging after Kovid-19. The European Union wants to move away from a global supply chain that is heavily dependent on China. In such a situation, India can emerge as its most natural ally.
Source – The Hindu