The EU-India connectivity partnership?

 The EU-India connectivity partnership

The recently announced European Union (EU)-India connectivity partnership is substantial in its scope and ambition. This partnership assumes great significance as the global market for connectivity and infrastructure development becomes hotly contested following the COVID-19 pandemic.

 

The India-EU Strategic Partnership based on a shared commitment to democracy, fundamental freedoms, rule of law and multilateralism. They exchanged views on three key thematic areas: 

i) foreign policy and security:

• The growing convergences on regional and global issues, including counterterrorism, cybersecurity and maritime cooperation. The leaders acknowledged the importance of a free, open, inclusive and rules-based Indo-Pacific and agreed to closely engage in the region, including in the context of India’s Indo-Pacific Ocean’s Initiative and the EU’s new strategy on the Indo-Pacific. 

 ii) COVID-19, climate and environment:

• Both will pursue implementation of international goals, obligations and commitments such as the Paris Agreement, the 2030 Agenda for Sustainable Development, the Addis Ababa Action Agenda, statements of the Asia-Europe Meeting of October 2018, the Sendai Framework for Disaster Risk Reduction, the United Nations Convention on Biological Diversity, International Labour Organisation Conventions and the "Call for Action: Raising Ambition for Climate Adaptation and Resilience”. 
• Both will engage in a policy dialogue on climate change to enhance cooperation at the level of the United Nations Framework Convention on Climate Change on sectors relevant for connectivity. 
• They will actively endeavour to use relevant forums such as the Coalition for Disaster Resilient Infrastructure and the International Solar Alliance to further the goals of the Connectivity Partnership. 
• The Partnership recognizes the importance of advancing the work related to the G20 Principles for Quality Infrastructure Investment and welcomes the launch of a second voluntary self-assessment of the implementation of the G20 Operational Guidelines for Sustainable Financing.

iii) trade, connectivity and technology. :

• India and the EU launched an ambitious and comprehensive ‘Connectivity Partnership’ which is focused on enhancing digital, energy, transport and people-to-people connectivity. 

• Both the countries took the  decision to resume negotiations for balanced and comprehensive free trade and investment agreements. Negotiations on both the Trade and Investment Agreements will be pursued on parallel tracks with an intention to achieve early conclusion of both agreements together. This is a major outcome which will enable the two sides to realise the full potential of the economic partnership. India and the EU also announced dedicated dialogues on WTO issues, regulatory cooperation, market access issues and supply chain resilience, demonstrating the desire to deepen and further diversify economic engagement.

•   Both the countires agrredbilateral cooperation on digital and emerging technologies such as 5G, AI, Quantum and High-Performance Computing including through the early operationalization of the Joint Task Force on AI and the Digital Investment Forum. 

• The Partnership is based on the shared principles of social, economic, fiscal, climate and environmental sustainability, and respect for international law and commitments. The Partnership will catalyse private and public financing for connectivity projects. It will also foster new synergies for supporting connectivity initiatives in third countries, including in the Indo-Pacific. 

The EU-India connectivity partnership can be a game-changer in the regional market for connectivity development. The BRI had offered an alternative template to the traditional Organisation for Economic Co-operation and Development infrastructure funding and had gained popularity for its easier conditionalities. However, it has had several downsides, including environmental impacts and erosion of strategic autonomy for recipients. The EU-India connectivity partnership can offset these downsides and emerge a viable option for supply of regional public goods.