EU Ambassador to India, Herve Delphin, has described India-EU relations as stronger than they have been in years, attributing this to greater strategic understanding and comfort between the two sides.

As he prepares to conclude his tenure in India, he reflected on his focus on building a comprehensive understanding of India and strengthening cooperation across diverse sectors.

He explained that the role of a diplomat is not only to represent the interests of his own country but also to listen, observe and build awareness of opportunities and challenges in the country of posting. He emphasised that the India-EU relationship is not confined to one area but spans a wide range of sectors, which he considered a key achievement of his tenure.

On the Free Trade Agreement, which took nearly two decades to conclude, he clarified that the latest negotiations should not be seen as a continuation of earlier talks. He described the recent process as FTA-2, distinct from the previous one, driven by realism and pragmatism. Both sides quickly identified priorities and red lines, avoiding wasted effort on issues that were non-negotiable.

He highlighted the strong political push behind the agreement, noting that global volatility and uncertainty had made the breakthrough more significant.

He said the complementary nature of Indian and European markets facilitated negotiations, as the two sides were not competing head-on in the same sectors. He noted that momentum picked up in 2025 and the deal was concluded in just over a year, with hopes of signing within less than a year.

Addressing concerns over the EU’s Carbon Border Adjustment Mechanism, he explained that CBAM was designed to prevent carbon leakage and incentivise lower emissions. He said European companies are subject to the EU Emissions Trading System, and CBAM ensures imports with high carbon content do not gain unfair advantage.

He stressed that CBAM would not affect all Indian exporters equally, pointing out that steel and iron account for over 80 per cent of India’s high-carbon exports to Europe. He added that consultations had been held with Indian authorities and industries, and noted that Indian steelmakers were increasingly working to reduce their carbon footprint. He suggested that low-emission steel producers could benefit, as Europe is expected to remain a net importer of steel.

He urged that the issue be right-sized, expressing confidence that through dialogue and mutual understanding it would be addressed fairly. He also underlined the shared objective of India and the EU to de-risk and build resilient supply chains. He said the FTA would act as an enabler, complemented by an Investment Protection Agreement and the India-EU Trade and Technology Council.

He revealed that both sides were examining strategic sectors such as semiconductors, clean technology, pharmaceuticals and agri-food. He spoke of exploring specific global value chains where cooperation and integration would bring mutual benefit.

He also introduced the concept of blue valleys, industrial cooperation parks or corridors where European and Indian companies could collaborate across research, innovation, Start-Ups, investment, skilling and joint manufacturing. He said this represented a qualitative change in the way the two sides worked together, enhancing resilience and reliability.

The Ambassador’s reflections underscored that India-EU ties are entering a new phase, marked by realism, pragmatism and a shared commitment to building a resilient, future-oriented partnership.

ANI