THE EU NEEDS TO ENGAGE WITH INDIA URGENTLY

The recent election victory of the Bharatiya Janata Party (BJP), led by prime minister Narendra Modi has proffered India a strong central government. By emerging as the largest party in parliament with a simple majority (282 of 543 seats), BJP has changed the paradigm of Indian politics, ending nearly three decades of bulky coalition governments that hindered governance and service delivery.

Modi clearly has political power and a strong popular mandate to lead the world’s third largest economy which is, in principle, an ideal partner for international counterparts. While domestic issues, in particular kick-starting India’s ailing economy, will be the government’s overriding priority, there is already a noticeably clear focus on foreign affairs.

The vectors of Modi's foreign policy point towards a shift for India from being a near-pacifist power to an orthodox regional power, from a great nation (with tremendous soft power) to a great power. His first foreign policy moves indicate a focus on the Asia-Pacific region, the Brics grouping (Brazil, Russia, India, China and South Africa), and even the US.

While relations with some EU member states, like Germany, France or the UK, will eventually be picked up by India, faltering relations with the EU look likely to dwindle further. A bilateral trade and investment free trade agreement (FTA) has been under negotiations for seven years. During the previous congress government, the BJP championed national opposition to EU-India FTA negotiations citing lack of transparency and an imbalance in favour of the EU. Now, with a BJP government in power, it seems doubtful that EU-India FTA talks as they stand now will never see the light of day.

The BJP as a political party is not inherently anti-Europe and is genuinely interested in economic development and foreign relations. But redoubled efforts by the EU will be necessary to salvage relations and advance with the EU-India strategic partnership.

As far as the FTA goes, the EU could do well to anticipate renegotiation of certain chapters like agriculture and dairy, intellectual property issues or public procurement to ensure that the deal is not shelved completely. Renegotiation of the FTA might take a few more years but would be a major economic and strategic achievement.

Finally, re-tuning the EU-India agenda to better align with Modi's own priorities and national agenda could help build synergies. In this regard, boosting cooperation on infrastructure, green energy, new technologies and transport would advance bilateral relations appreciably.

Narendra Modi has every intention of putting India at the centre stage of global geopolitics and economics. Befriending the world's largest democracy would fare well for the EU.

The European Union, as a single entity, is already India's largest trade partner. Two-way trade more than doubled between 2003 and 2013, reaching €72.7 billion. However, that makes India only Europe's tenth-largest trade partner, lagging significantly behind the €428 billion of trade between Europe and China.  A faster-growing India could also mean other direct and indirect benefits for Europe. The country's defense modernization, which had slowed under the previous government, is expected to pick up, and European suppliers will certainly be in competition to provide military equipment and expertise. India will also require investment to meet its future infrastructure requirements — estimated to be in the trillions of dollars — and will be seeking mutually beneficial partnerships on renewable energy, agricultural technologies, and vocational education, given its incredible needs in these and other areas. Should India improve its infrastructure, training, and overall ease of doing business, its sheer size and potential would place it among the more attractive investment destinations among developing economies.