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Table of Contents
Table of Contents.......................................................................................................................1 CHAPTER I...............................................................................................................................1 INTRODUCTION..................................................................................................................1 LITERATURE REVIEW.......................................................................................................5 OBJECTIVES:.......................................................................................................................8 CHAPTER II..............................................................................................................................9 EU INDIA STRATEGIC PARTNERSHIP........................................................................9 1.1 THE INDIA-EU STRATEGIC PARTNERSHIP (JOINT ACTION PLAN)................10 1.2 THE STRATEGIC IMPORTANCE OF THE RELATIONSHIP..................................10 CHAPTER III...........................................................................................................................25 REVISED JOINT ACTION PLAN.....................................................................................25 2.1 EUROPEAN UNION INDIA STRATEGIC PARTNERSHIP REVIEWED ............26 2.2 STRATEGIC SIGNIFICANCE OF THE EU-INDIA STRATEGIC PARTNERSHIP 27 2.3 EU-INDIA STRATEGIC PARTNERSHIP: THE GLOBAL IMPLICATIONS...........28 2.4 EU-INDIA STRATEGIC PARTNERSHIP: THE REGIONAL IMPLICATIONS......28 2.5 EU-INDIA STRATEGIC PARTNERSHIP: THE FUTURE PROSPECTS..................29 CHAPTER IV..........................................................................................................................31 EU-INDIA TRADE..............................................................................................................31 CHAPTER V............................................................................................................................35 Future of EU-India relations.................................................................................................35 CONCLUSION........................................................................................................................37 BIBLIOGRAPHY....................................................................................................................38

CHAPTER I
INTRODUCTION

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India-EU relations have flourished since 1962 when India became one of the first countries to establish diplomatic relations with the then six-member European Economic Community. A regular political dialogue was boosted through the first Summit held in 2000 which, since the 2004 Summit, has taken the shape of a Strategic Partnership, making India one of the EUs select global partners. EU-India cooperation is characterized by robust and regular dialogue with Troika Ministerial Meetings, Senior Officials Meetings and yearly Summits. In addition, there are regular meetings on counter-terrorism, human rights and consular affairs. The EUIndia Round Table adds an important civil society component to the Partnership. The Strategic Partnership, Implemented through the EU-India Joint Action Plan In 2005, the Sixth EU-India Summit launched a Joint Action Plan (JAP) to implement the multidimensional EU-India Strategic Partnership. This landmark document commits the EU and India to: Strengthening dialogue and consultation mechanisms, Deepening political dialogue and cooperation in areas such as pluralism and diversity, democracy and human rights, peacebuilding and post-conflict assistance, regional cooperation, non-proliferation and the fight against terrorism and organized crime, Bringing together peoples and cultures through parliamentary, academic and civil society exchanges, including the EU-India Civil Society Round Table, cultural cooperation and dialogues on migration and consular issues, Enhancing economic policy dialogue and cooperation through working groups on industrial policy, energy and climate change, the environment, business and development cooperation, clean development, finance and transport, Developing trade and investment in the spheres of services, public procurement, intellectual property rights, and trade defense instruments in addition to moving forward on World Trade Organization and Doha Development Agenda negotiations, At the Marseille Summit in 2008, the EU and India identified new activities to complement The Revised Joint Action Plan , with the objective of promoting international peace and security and working together towards achieving economic progress, prosperity and sustainable development. The revised plan also reaffirmed the EU and Indias commitments to cooperation on research and technology and people to people cultural exchange. India and the European Union (EU) are committed to an equal and dynamic dialogue on all areas of mutual of interest and concern as major actors in their own regions, and as emerging global players on the world stage. In todays rapidly evolving international order, India and the EU are increasingly called upon to play major roles, both within their respective regions and beyond. The challenge for both is to strengthen the EU-India partnership through institutional and civil society frameworks and mechanisms that will sustain the necessary political will to fully realize all joint endeavors. The India-EU political partnership is already embedded in a strong institutional architecture. Annual ministerial meetings and summits are the most visible feature of an ongoing political dialogue. Senior officials and experts regularly meet on issues of common concern such as terrorism, human rights, trade and development. Political relations are also strengthened by the regular exchange of visits between EU and Indian parliamentarians and draws on the strengths of the two civil societies. The EU is Indias first partner in terms of trade and actual investment inflows and one of its major partners in the fields of economic and development cooperation. Their vibrancy and diversity reflect both the strengths of the respective democracies and the multi-lingual, multicultural societies in Europe and India. The launching of an India-EU Round Table of eminent personalities and the creation of an India-EU network of Think Tanks are significant steps towards greater mutual cooperation in all fields. In the same spirit, the development of academic and cultural exchanges plays an increasing role in broadening the spectrum of India-EU relations. At the same time, the momentum generated by various on-going projects
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under the India-EU Economic Cross-Cultural Program serves to boost cooperation in the fields of media, academia and business enterprises. New formats for dialogue have been created through Indian membership of the Asia-Europe Meeting (ASEM) and the EUs observer status at SAARC summits. India is one of the growing economies that will reshape the global economy in the twentyfirst century. Europe is the largest trading power. Both are involved in key negotiations to boost trade and investment at the WTO and bilaterally through an ambitious Free Trade Agreement. The EU is Indias largest trading partner. EU-India trade has grown impressively over the years. Trade in goods and services is almost 80 billion (more than INR 500 000 crore) in 2008. The EU accounts for 21 percent of Indias total exports and 16 percent of Indias total imports. India accounts for a more limited but rapidly growing share of EU trade: 2.4 percent of EUs total exports and 1.9% of the EUs total imports; India ranked 10th in the list of the EUs main trading partners in 2008, up from 15th in 2002. The EU is also India's largest source of foreign direct investment (FDI). There is still a huge potential for developing EU and India trade and investment. The European Union brings together 500 million citizens and four of the worlds seven largest economies. It is the world's largest exporter of manufactured goods and services, and is the biggest export market for more than one hundred countries. Alone, it accounts for one fifth of global trade. Trade is the motor of Europes prosperity. In this borderless Europe, people and products can move freely from one place to another. The 27 Member States of the European Union share a single market, a single external border and a single trade policy. European Union Member States have agreed to pool their sovereignty and follow a common policy on international trade. It means there is one negotiation, one negotiator the European Commission and at the end of the process just one agreement instead of 27 different sets of trade rules with each of Europe's trading partners. The Commission also represents the EU Member States in the World Trade Organization. Member States embassies in partner countries are in charge of export promotion and offer a wide range of services to their national operators, including helping them e.g. to know more about the Indian market; find local contacts; carry out in-depth research on the market for their goods; or attend trade fairs. India is an important trade partner for the EU and a growing global economic power. It combines a sizable and growing market of more than 1 billion people with a growth rate of between 8 and 10 % till 2008 - one of the fastest growing economies in the world. India's growth also proved to be more resistant to the world economic and financial downturn than most other countries. Although it is far from the closed market that it was twenty years ago, India still also maintains substantial tariff and non-tariff barriers that hinder trade with the EU. The GATT-WTO system, which has grown over sixty years into the network of agreements and obligations overseen by the World Trade Organization, helps to ensure that trade is open, predictable and fair. More than 150 countries are now members of the WTO. The WTO provides a forum in which all of its members have an equal say in the making of trade rules and in the negotiation of new WTO trade agreements. The WTO system has helped to shape and maintain a system of global trade rules that not only keeps the global economy open for trade, but reflects and respects the special needs and concerns of developing countries. European countries as well as India were amongst the founding members of the modern international system of trade rules. Both EU and India are firm supporters of the GATT-WTO system and key actors in the Doha round of negotiations launched in 2001. A successful conclusion of the Doha round would contribute significantly to a more open and stable environment for trade and investment for both the EU and India.

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India as a leader of the group of (advanced) developing countries known as the G20, and also as part of G4 (along with the EU, the US and Brazil) is steering the negotiations. With its combination of rapid growth and relatively high market protection India was an obvious partner for one of the new generation of EU FTAs launched as part of the Global Europe strategy in 2006. With its 500 million affluent consumers market, the largest in the world and the first outlet for India's goods and services, the EU was a very attractive potential FTA partner for India. The parameters for an ambitious and comprehensive FTA, including goods, services, investments and other key aspects, were set out in the report of the EUIndia High Level Trade Group in October 2006, which was tasked with assessing the viability of an FTA between the EU and India. Other studies have underlined the economic potential of an FTA between the EU and India. In addition to multilateral and bilateral negotiations with India, the European Commission works on a day to day basis to remove specific barriers and obstacles encountered by exporters, to open up new opportunities for European investment, and to reduce counterfeiting and piracy of European goods. This is part of the renewed market access strategy launched in 2007. To assist India in continuing its efforts to better integrate into the world economy with a view to further enhancing bilateral trade and investment ties, the EU is providing trade related technical assistance to India. 13.3 million were allocated through the Trade and Investment Development Program (TIDP) funded from the Country Strategy Paper (CSP) 2002-2006. At present, the follow-up program to the TIDP -- the Capacity-building Initiative for Trade Development (CITD) -- is being designed and will be funded by the CSP 2007-2013. The Trade and Investment Development Program (TIDP) was a time bound program that started in December 2005 and concluded in December 2007. It aimed to assist India in creating an environment that encourages trade and investment. By improving trade and investment ties between India and Europe, the program targeted businesses expansion, job creation, and a rise in incomes so that consumers are benefited from more choice and lower prices. The 13.3 million program was financed by a 12.7 million contribution from the EU and a 0.6 million contribution from the Government of India. TIDP was developed by the European Commission (EC) on behalf of the EU in partnership with the Department of Commerce of the Ministry of Commerce and Industry and in close coordination with the relevant ministries of the Government of India and their respective field organizations. The EU with continue to provide technical assistance to India through the Capacity-building Initiative for Trade Development (CITD) which will address some key areas to further integrate India into the international trade system. It will also aim to enhance Indias traderelated regulatory institutions and enforcement systems to meet international standards and requirements while supporting Indias trade-related training institutions in strengthening their capacities. The EU-India Civil Aviation project (2001-06) was the EUs largest economic cooperation project in India. The project aimed to improve regulatory links and safety, and facilitate business links while investing in human capital. Partnership was the key to the projects success with co financing provided by the European Commission, Indian partners and the European aerospace industry, and technical assistance delivered by the Aerospace and Defense Industries Association of Europe. Over 250 training courses, workshops and seminars were completed both in India and in Europe and more than 4,000 people trained. At Maritime Agreement is currently being negotiated between the EU and India. Formal negotiations were launched at the fourth EU-India Summit in November 2003. Such an agreement would improve the conditions and legal framework under which maritime transport operations to and from India are carried out for the benefit of both economies.

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LITERATURE REVIEW
1. A row between the EU and India over the transit of generic drugs through Europe has

been resolved. As a result of the deal at an India-EU summit in Brussels, an Indian complaint to the World Trade Organization will be suspended, India's trade minister said. But some fear the free trade agreement (FTA) at the core of the summit will hurt generic drug production. The UN HIV/Aids programme (UNAids) expressed concern on the eve of the summit about "trade agreements that place additional burdens on the manufacture, import or export of lifesaving medicines". It stressed that Indian manufacturers accounted for more than 80% of generic antiretroviral medicines, and supplied most developing countries. EU officials insist the FTA will not limit India's right to produce generic drugs and dismissed such concerns as scare-mongering. In a joint statement, Indian Prime Minister Manmohan Singh, European Council President Herman Van Rompuy and EU Commission chief Jose Manuel Barroso said they looked forward to a FTA being concluded in the spring. 2. Despite all official assurances, the path towards a free trade agreement (FTA) between India and the European Union (EU) this year remains ambiguous, as both sides are unwilling to relax their stand on the biggest stumbling block the issue of data exclusivity. While the commerce ministry, the government arm responsible for scripting policy framework for intellectual property rules in the country, says there is no let-down in this matter, its EU counterpart insist that insistence on data exclusivity is integral to the trade deal. Nayanima Basu & Joe C Mathew / New Delhi January 27, 2011, 0:31 IST 3. Data exclusivity provides protection to the technical data generated by innovator companies to prove the merit of usefulness of their products. In the case of pharmaceuticals, it means the data generated by drug companies through expensive global clinical trials to prove the efficacy and safety of their new medicine. By gaining exclusive rights over this data, innovator companies can prevent their competitors from obtaining marketing licence for low-cost versions during the tenure of this exclusivity. Indian drug firms that make generic versions of innovator medicines get their approvals after proving that their product is bio-equivalent to the original drug. In other words, they do not repeat the same clinical trials conducted by the innovator company to generate data needed to prove its safety under current laws. The most serious impact is likely to be on drugs that are not under patent. In such cases, data exclusivity will create a patent-like barrier that will prevent generic entry of new formulations during the entire period of exclusivity. For instance, traditional medicine colchinine, which cannot be patented as it has been used as a therapeutic agent in the treatment of gout for thousands of years, was awarded data exclusivity in the United States. Once the US drug regulator accepted the one-week trial of the drug, the company was able to enforce data exclusivity to block affordable generics. It enforced its exclusive rights, raised the price from $0.09 per pill to $4.85, and sued to remove other competitors off the market, Indian Drug Manufacturers Association Secretary General Daara B Patel said.

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4. The Eleventh European Union - India Summit was held in Brussels on 10 December 2010. The Republic of India was represented by the Prime Minister, Dr Manmohan Singh. EU was represented by Mr Herman Van Rompuy, President of the European Council, and Mr. Jose Manuel Duro Barroso, President of the European Commission. Leaders emphasised that EU and India, which share common values relating to democracy, rule of law, civil liberties and respect for human rights, agreed to reinforce their strategic partnership for their mutual benefit in all areas and to better contribute to the resolution of the challenges of the twenty first century. They discussed bilateral, regional and global issues of common interest and concern. In the context of overall EU-Indian interaction, leaders noted Indias development priorities as well as the new dimension of EU, following the entering into force of the Lisbon Treaty. 5. According to Kavaljit Singh (Madhayam: Organization involved in research and public education on economic and developmental issues.) Under the proposed India-EU free trade agreement, the European Commission (EC) has sought an expansive mandate to negotiate on investment issues on the behalf of the European Union. On January 20, 2011, the EC officially made recommendations to the European Council seeking modifications in the negotiating directives for the trade agreement with India. If these recommendations are accepted, the EC would pursue comprehensive cross-border investment liberalization and protection provisions under the proposed free trade agreement with India. The EC document calls for the progressive abolition of restrictions on investment, with the aim to ensure the highest level of market access. Since 2007, India and EU are negotiating a comprehensive free trade agreement (FTA) covering trade in goods and services, intellectual property rights and government procurement. Till now, ten negotiating rounds have been held. The agreement is expected to be finalized by mid-2011. 6. Kenya has been sucked into a global campaign to block the European Union from implementing a new policy on Aids drugs. The controversial move could restrict access to cheaper anti-retroviral drugs (ARVs) by poor nations. Health and civil society organisations in Kenya say the new intellectual Property provisions currently under negotiations would push the prices of ARVs beyond the reach of the more than 1.5 million Kenyans living with the virus. The agreements could reduce the production of cheaper generic ARVs in India, the worlds largest manufacturer of generic medicine. Sichangi. He said the move would result to restrictions on generic competition, which will lead to higher drug prices and diminished access to medicines. He said the US was also demanding that India adopts more restrictive intellectual property policies that would hinder generic production and restrict use of public health safe guards. "Such restrictions on the Indian market will translate into decreased pipeline of affordable versions of important HIV medicines for people in developing countries. Costs to donors and national programmes will rise, ARVs access will be rationed and patients will die," he said. By John Oywa

7. Troubling news reports indicate that a newly-minted Free Trade Agreement between the European Union and India would permit companies to circumvent visionary safeguards built into Indias 2005 Patents Act, widely seen as one of the most progressive patent laws in the world. Over the past decade, India fought hard to bring its laws into full compliance
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with international standards, while simultaneously protecting public health and safeguarding Indias pharmaceutical industry. Now, the EUs trade negotiators are trying to take away those gains. Priti Radhakrishnan & Tahir Amin 8. The Indian Pharmaceutical Alliance (IPA), an association of leading Indian pharma companies, has raised alarm over the recent media reports that efforts are going on in the Prime Ministers Office (PMO) to destabilize Indias IPR regime at the behest of European Union which, the IPA cautioned the government, will have serious implications on the public health, access to medicines and the domestic generic industry. Besides the IPA, the proposed EU-India Free Trade Agreement (FTA) has caused considerable concern among the civil society organizations and others because of apprehensions about its impact on access to medicines. More so, as the impact will not be restricted to India alone but will also extend to developing countries as India is a major source of affordable generic medicines. Ramesh Shankar, Mumbai 9. European Union (EU) ambassador to India Daniele Smadja said ongoing negotiations for the India-EU broad-based trade and investment agreement (BTIA) may not be concluded by this year. She said only an agreement on the main elements of the deal would be finalized by then. Asit Ranjan Mishra 10. Hard lobbying by the European Union (EU), home to many of the worlds largest pharmaceutical firms like Novartis, Sanofi-Aventis and Roche, has struck a chord with the Prime Ministers Office (PMO), which is now putting pressure on a reluctant commerce and industry ministry to include a contentious IPR chapter in the proposed India-EU trade and investment pact. The EU wants India to liberalize its patenting standards exclusively for the applicants from the unions 27 countries. It also clamours for a string of associated rewards like a defined period of data exclusivity and Supplementary Protection Certificates (SPCs). These additional rights would enable the patent-holders to fully exploit the economic value of their inventions (including incremental ones) by enjoying the exclusive rights for longer periods, much more peacefully and to the fullest. Agreeing to the EU demands could, however, potentially overturn Indias Patent Act which was last amended in 2005 and arguably strikes a balance between patent rights and the access to medicines, and hit the countrys generic drug industry hard. KG Narendranath 11. Recognizing the substantive progress made in many chapters (bilateral trade and investment agreement between the EU and India), the EU and India agree to expedite the process for concluding the negotiations by the spring of 2011. To this end, both sides have agreed to intensify work on all pending areas and to meet at the chief negotiators level on at least a monthly basis. A meeting of the Commerce Secretary and the Director General of Trade will take place in early 2011. A Ministerial meeting will be held in March of 2011. 12. The US share in India's textile exports has increased, whereas shipments to the European Union (EU) have declined in the current fiscal, reflecting different economic scenarios in
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the world's two major economies. According to disaggregate data, for April-September 2010-11 period, the share of the US in India's total textile exports has increased to about 20 per cent from a shade in the 19 per cent in the year ago. On the other hand, the 27nation bloc EU contributed 4.50 percentage points less to India's textiles exports at 29.81 per cent for the period under review. Trade analysts attribute the contrasting trend to a pick- -up in the US economy while several countries of EU are facing financial troubles and lack of economic confidence. Between them the US and the EU account for about 50 per cent of textile exports, which faced difficult times following the recession in these economies between 2008 and 2009. However, the situation has improved in the current financial year. According to the aggregate data, textiles exports as a whole have increased by about 20 per cent between April-January periods. The Herald 13. India and Bangladesh, the two regional competitors of Pakistan in the textile trade, have once again opposed the European Unions (EU) trade concession package for the flood-hit country at the meeting of Word Trade Organization (WTO) in January. India and Bangladesh continued to oppose the package at the WTO meeting on January 31, a participant of the meeting told The News on the condition of anonymity. India has always played a negative role against Pakistan at the international level, whether it was an economic matter or a political one, he opined. Five years ago, it was India which got the earlier EU trade package blocked through WTO that Pakistan had been utilising for three years, he said. Textile industry representatives maintain that the exports of raw material would worsen the economic situation of the country rather than helping it to come out of crisis. By Salman Siddiqui /Thursday, February 10, 2011 14. EU-IndiaGrid2 is organizing this Grid school in collaboration with CHAIN (Coordination and Harmonization of Advanced e-Infrastructures), and EPIKH (Exchange Programme to advance e-Infrastructure Know-How), announce the Grid School for site administrators and Application Porting to be held in Kolkata, India. The aim of this tutorial is to prepare system administrators on the installation of grid sites and actually put together those facilities to increase the size of the CHAIN/EU-IndiaGrid2 infrastructures. Source: EU-INDIAGRID website/ 03 JANUARY 2011 15. A planned free trade agreement between the European Union and India could lead to increased immigration of Indians to the EU. The free trade agreement would make it easier for Indian IT workers, engineers, and managers to live and work in the EU in return for greater access for European companies to India's enormous domestic market. Under the free trade agreement, a skilled Indian worker would be allowed to work in any EU country under contract. In return, India would reduce tariffs on European products and lift some restrictions on bidding on certain public projects. The EU also wants India to make the issuance of Indian visas to EU citizens, business professionals, and politicians easier. This would include multiple entry visas with minimum one year duration. A recent study found that the free trade agreement would result in Europe's economy growing by 4.5 billion euros a year. OBJECTIVES:
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We are going to undertake the below mentioned objectives: 1. 2. 3. 4. 5. To study the EU India Strategic Partnership. To study the revised joint action plan. To study the EU-India business relations. To study the projects undertaken by EU in different sectors in India. To study the future scenario of EU-India relationship.

CHAPTER II
EU INDIA STRATEGIC PARTNERSHIP
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1.1 THE INDIA-EU STRATEGIC PARTNERSHIP (JOINT ACTION PLAN) India- EU relations go back to the early 1960s. India was among the first countries to establish diplomatic relations with the (then) EEC. The 1994 cooperation agreement signed between EU and India took bilateral relations beyond merely trade and economic cooperation. Together with the Joint Political Statement signed in 1993 it opened the way for annual ministerial meetings and a broad political dialogue. The first India-EU Summit in Lisbon in June 2000 marked a watershed in the evolution of this relationship. Since then there have been five Summit-level interactions, the last being the Fifth Summit in The Hague on 8th November 2004. India-EU relations have grown exponentially from what used to be a purely trade and economic driven relationship to one covering all areas of interaction. The Summit in The Hague was a landmark Summit, as it endorsed the proposal to upgrade the India-EU relationship to the level of a 'Strategic Partnership'. We see this Partnership as more than just the sum of its parts. We see it as a qualitative transformation in the way we engage as equal partners and work together in partnership with the world at large. 1.2 THE STRATEGIC IMPORTANCE OF THE RELATIONSHIP India-EU relations have developed substantially since the adoption of the 1993 Declaration. An extensive bilateral political dialogue has evolved, which includes regular annual summits, Troika Ministerial and Senior Official level meetings covering a wide range of issues. In the economic sphere, ties have expanded and we have worked closely together to strengthen the multilateral trading system and to pursue a constructive dialogue on trade and investment and economic cooperation. India and the EU, as the largest democracies in the world, share common values and beliefs that make them natural partners as well as factors of stability in the present world order. We share a common commitment to democracy, pluralism, human rights and the rule of law, to an independent judiciary and media. India and the EU also have much to contribute towards fostering a rule-based international order - be it through the United Nations (UN) or through the World Trade Organisation (WTO). We hold a common belief in the fundamental importance of multilateralism in accordance with the UN Charter and in the essential role of the U N for maintaining international peace and security, promoting the economic and social advancement of all peoples and meeting global threats and challenges. As the EU evolves and enlarges, and as we both face diverse and complex global challenges, it is critically important to expand our multifaceted relationship and build upon these foundations. We commit ourselves accordingly to: 1. 2. 3. 4. 5. Strengthening dialogue and consultation mechanisms; Deepening political dialogue and cooperation; Bringing together People and Cultures; Enhancing Economic Policy Dialogue and Cooperation; Developing Trade and Investment.

I. STRENGTHENING DIALOGUE AND CONSULTATION MECHANISMS India and the EU have effective mechanisms for dialogue at all levels. With the launching of the India-EU Strategic Partnership, it is necessary to further intensify our dialogue, both by actively strengthening existing mechanisms and making them more efficient as well as
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initiating dialogues in new areas being considered for cooperation. It would also be necessary to put follow up mechanisms in place in order to effectively implement the decisions taken, with a view to ensuring a more sustained and cohesive approach to issues affecting India and the EU over an increasingly wide range of sectors. Towards this end, India and the EU will: 1. Maintain the high level dialogue at Summit and Ministerial level on all issues of mutual interest. Make full use of opportunities for contacts between Indian Ministers and their EU counterparts on issues of mutual relevance; 2. Continue to exchange views on regional issues and the international situation at the official and ministerial level; 3. Review at the Senior Officials Meeting and EU-India Joint Commission the effective implementation of decisions taken at the political level. 4. The progress in the implementation of the Joint Action Plan will be placed before each annual Summit, and an overall assessment will be made for the next India-EU Summit. II. POLITICAL DIALOGUE AND COOPERATION PLURALISM AND DIVERSITY Both India and the EU are multi-cultural, multi-religious and multi-lingual societies. India is a microcosm of the globe because of its sub-continental size and a population that accounts for nearly one sixth of humanity. India, with the second largest Muslim community in the world, is a paradigm of Asia's syncretic culture, and of how various religions can flourish in a plural, democratic and open society. The EU, with its expanding geographical boundaries and diversifying demography, is one of the most demographically diverse entities in the world and yet able to synthesise the diversity of its member states into a coherent whole. These are areas where both India and the EU could benefit from an exchange of experiences. Both sides share the objective of contributing to the promotion of cultural and linguistic diversity, which we consider an inalienable value, and the promotion of dialogue among cultures at the international level. Towards this end: 1. India and the EU will initiate a dialogue on Pluralism and Diversity with a view to sharing experiences and enhancing mutual knowledge of the cultural and linguistic diversity existing within India and EU; 2. India and the EU will continue to encourage academic exchanges on the dynamics of pluralistic societies in Europe and Asia. DIALOGUE ON REGIONAL COOPERATION IN THE EU AND IN SAARC SAARC and the EU are large entities with complex structures and diverse demographies. India and the EU would benefit from a deepened exchange of views on developments in Europe and South Asia. The European Commission already has a Memorandum of Understanding with SAARC, the main focus of which is technical assistance. The European Commission and SAARC Secretariat are currently exploring the possibilities of strengthening cooperation for technical assistance in various projects. Towards this end, India and the EU will seek to have a regular exchange of views on regional cooperation in the EU and in SAARC. DEMOCRACY & HUMAN RIGHTS

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Both India and the EU are committed to upholding human rights and fundamental freedoms and have ratified the major international human rights instruments. These shared values, based on democracy, pluralism and respect for the rule of law gives strength to the relationship. We propose to: 1. Continue in a spirit of equality and mutual respect, the dialogue on Human Rights both in a multilateral and bilateral context, with the objective of building greater mutual understanding and expanding common ground in order to strengthen the foundations of the strategic partnership; 2. Consult and discuss positions on human rights and democracy issues and look at opportunities for co-sponsoring resolutions on thematic issues in relevant fora such as UN Commission on Human Rights or UNGA Third Committee; 3. Look together for possible synergies and initiatives to promote human rights and democracy. EFFECTIVE MULTILATERALISM India and the EU believe that a multilateral approach, in which the UN plays a central role, is the best way to address global challenges such as development which is economically, socially and environmentally sustainable; effective management of globalization; terrorism; drug trafficking; organized crime; natural disasters; pandemics; and energy security. Accordingly, we will: 1. Work closely to promote effective multilateralism; 2. Continue to hold regular consultations on thematic issues prior to the UN General Assembly (UNGA), and work together on negotiation and implementation of the outcome of major international conferences and Summits including on security, trade, environment, development and human rights; 3. Exchange views on the issues raised by the Secretary General of the United Nations in his comprehensive report entitled In Larger Freedom: Towards Development, Security, and Human Rights for all; 4. Endeavour to invite each other reciprocally for conferences sponsored by either side where the other is, or can be, a participant. PEACEKEEPING, PEACE-BUILDING AND POST-CONFLICT ASSISTANCE India and the EU have a common interest in UN peacekeeping and in post-conflict political and economic rehabilitation and reconstruction. We propose to work together in the first instance in the following areas: 1. Consultation before major UN debates on peacekeeping and peace-building and in the preparation of major peace conferences; 2. Establishing a dialogue at official level on UN peacekeeping and peace-building to exchange perspectives on conceptual and operational aspects of Peacekeeping Operations, including post-conflict reconstruction and rehabilitation, in order to identify and develop specific areas of cooperation in the following sectors: 1. Training for military and civilian components of peacekeeping missions, including Police and other security forces; 2. Exchange of trainees and instructors between Peacekeeping Training Centres of India and EU Member States;
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3. Joint support of UN peacekeeping and peace building efforts, including as regards improved analytical capacities and greater cooperation between EU and Indian components of UN peacekeeping missions; 4. Trade and development in peace-building; 5. Post-conflict and confidence building projects in other regions of the world; 6. Seminars and other activities designed to facilitate post conflict management. DISARMAMENT AND NON-PROLIFERATION OF WMD AND SECURITY DIALOGUE India and the EU have a shared interest in working towards achieving the goals and objectives of universal disarmament and non-proliferation of weapons of mass destruction and their means of delivery. The proliferation of weapons of mass destruction and its linkages with terrorism poses a threat to international peace and security. In this context, we resolve to enhance collective action to fight the proliferation of WMD as well as their means of delivery. We believe that our response to proliferation challenges requires strengthened multilateral consultations and the pooling of all efforts and resources. We agree that effective export control measures for dual use goods can play an important role in preventing proliferation, and at the same time, such measures should not hamper international cooperation in materials, equipment and technology for peaceful purposes. We will establish a bilateral India-EU Security Dialogue at Senior Official level which will include regular consultations on global and regional security issues, disarmament and non-proliferation to increase mutual understanding and identify possible areas of cooperation. FIGHT AGAINST TERRORISM AND ORGANISED CRIME India and the EU recognize the fact that terrorism constitutes one of the most serious threats to international peace and security, and reaffirm their condemnation of all acts of terrorism as criminal and unjustifiable, irrespective of their motivations, forms and manifestations. We propose to work together to strengthen our cooperation in counter-terrorism efforts in accordance with the UN Charter and applicable principles of international law. We agree to: 1. Support the work of the UN to ensure universal respect for and full implementation of all relevant UN Security Council Resolutions (UNSCRs), UN conventions on terrorism and related protocols; 2. Cooperate in the fight against terrorism and establish contacts between the Indian and EU Counter Terrorism Coordinators; 3. Cooperate in the fight against trafficking in drugs and psychotropic substances, and the diversion of chemical precursors related to their production; 4. Work closely to promote the early entry into force of the International Convention for Suppression of Acts of Nuclear Terrorism and for the early conclusion of the Comprehensive Convention on International Terrorism; 5. Work together to reduce terrorist access to financing and to fight money-laundering, and monitor suspicious transactions, taking into account international standards adopted by the Financial Action Task Force (FATF); 6. Exchange views on how to develop the comprehensive United Nations counterterrorism strategy based upon the recommendations in the Secretary Generals report In Larger Freedom; 7. Expand the EU-India dialogue to include the link between drug trafficking and terrorism, document security, illicit arms trafficking and cyber-terrorism;
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8. Promote cooperation between Europol on the EU side and the Central Bureau of Investigation (CBI) on the Indian side; 9. Establish an Indian contact point in India for Eurojust. III. BRINGING TOGETHER PEOPLE AND CULTURES MIGRATION AND CONSULAR ISSUES The subjects of Migration and Consular Issues are increasingly important in the context of globalization, given the large-scale movement of people from region to region for economic or other reasons and the large migrant communities in both India and the EU. It is important to note that India is a source, transit point and a destination for migrants. We recognise that we need to maintain a constant dialogue on all aspects relating to migration and consular issues. We also recognize that facilitation of movement of people is an important aspect of improving people-to people contacts. Given the inter-connections between migration and other issues such as public security, we are convinced of the need for an exchange of views in this area. It is, therefore, felt useful to hold a comprehensive dialogue on migration issues. The India-EU Joint Working Group on Consular Issues was set up following the first IndiaEU Summit in Lisbon in 2000, in order to enhance cooperation in facilitating the movement of people between India and the EU, including the speedy delivery of consular and visa services and enhancing business relations and tourism. The Working Group meets twice a year to discuss issues of concern on either side. We encourage it to continue its work, with a view to further facilitating progress. We will therefore: 1. Hold dialogues on all aspects of migration and consular issues of interest to us; 2. Encourage institutions on either side to undertake joint studies on problems relating to skillset shortages and the changing demographic profiles in our regions. PARLIAMENTARY EXCHANGES As the two largest democracies in the world, the importance of regular Parliamentary interactions between India and the EU can hardly be over-emphasized. They are essential to enhance understanding of each other's points of view on matters of interest to both sides. They also encourage greater understanding of each other's democratic systems and areas of responsibility. We propose to: 1. Work towards the further development of EU-India friendship groups in the Indian Parliament and the European Parliament; 2. Organize regular exchanges of visits by Parliamentary delegations, including by the Speaker of the Lok Sabha to the European Parliament and the President of the European Parliament to the Indian Parliament; 3. Encourage greater interaction between subject-specific Parliamentary Committees on both sides. EDUCATION & ACADEMIC EXCHANGES We are convinced that cooperation between institutions of higher education and the exchange of scholars and students play a significant role in enhancing mutual knowledge. We therefore propose to build on existing programmes between India and EU Member States and develop new initiatives to accord greater opportunities to students from both sides to study in each other's universities. We will seek to:
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1. Promote the implementation of the India Window of the Erasmus Mundus Scholarship Programme; and encourage continuation of the programme; 2. Link up Websites of Indian and EU Universities and academic institutions in order to better inform students of academic opportunities in each others areas; 3. Encourage the development of EU studies in India and Indian studies in the EU, by encouraging installation of Chairs and/or Centres of Modern Indian Studies in EU Universities and of EU Studies in Indian Universities including EU languages; 4. Facilitate access to academic institutions and residence in each other's territory of students admitted into bona fide programmes of such institutions. CIVIL SOCIETY EXCHANGES The First India-EU Summit in Lisbon in June 2000 recognised that the involvement of organised civil society in the dialogue between the two sides would add a new dimension to India-EU relations. Given the vibrant and free civil societies that flourish in India and in the EU, it was felt that the creation of a forum to institutionalise such interaction would enhance each other's understanding of regional and global problems through open and frank discussions. In pursuit of this approach, the India-EU Round Table was inaugurated in January 2001 so as to complement the existing political, economic and social links. Eight Round Tables covering diverse areas of mutual interest have been successfully held. We will seek to expand our cooperation through: 1. Promoting cooperation between political parties, trade unions, business associations, universities and civil society (including Think Tanks and NGOs); 2. Developing the India-EU Civil Society Internet Forum enabling enhanced exchange of ideas between civil society actors; 3. Continuing to support the work of the India-EU Round Table, and its integration into the institutional architecture of the India-EU relationship. CULTURAL COOPERATION The EU and India, which enjoy rich and diversified cultural traditions, recognise culture as an important instrument to foster close cooperation among States. We express satisfaction at the ongoing programmes and cultural exchanges between India and EU Member States and will endeavour to increase these exchanges both at the institutional level as well as at the level of public and private organizations. We believe that more areas of cooperation can be further considered and exploited, especially in fields where longstanding cultural traditions, as well as contemporary creations, can enrich such cooperation and make it fruitful. We will identify such areas and explore ways of collaboration. We will in particular seek to: 1. Work towards full implementation of the Cultural Declaration; 2. Hold India-EU Cultural weeks on a reciprocal basis as part of the India-EU Summit activities, with both sides facilitating participation, funds and logistics; 3. Facilitate participation by both sides in Film Festivals and other relevant cultural events to be organized in each other's territories; 4. Develop cooperation programmes in preservation and restoration techniques;

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5. Promote dialogue between respective audiovisual industry with a view to stimulating cooperation and exchange programmes; co-production, circulation of cultural works between Europe and India and training professionals; 6. Exchange views on cultural diversity including on developments such as the adoption of the UNESCO Convention on the Protection and the Promotion of the Diversity of Cultural Expressions; 7. Undertake possible joint action to increase awareness of European culture in India and Indian culture in Europe, including meetings, seminars and thematic conferences which gather professionals, in particular from the audiovisual sector; 8. Undertake twinning between European and Indian cities, in accordance with each others guidelines. INCREASING MUTUAL VISIBILITY India and the EU are large geographical entities, with complex and diverse demographies and rich histories and cultural traditions. This necessitates a conscious effort on both sides to inform each other's public opinion. Both societies are evolving rapidly and there is a constant need to update the media image on both sides. The strategy to enhance mutual visibility should include enhancing the effectiveness of available instruments at our disposal, in addition to exploring new ones. To this end, we propose to: 1. Promote more intensive media coverage of India in the EU and vice versa; 2. Enhance journalistic exchanges between the two sides; 3. Organize short term information courses and thematic conferences for journalists on a reciprocal basis; 4. Promote tourism in both directions and especially enhance interaction between youth groups including cooperation in the field of sport. 5. Develop periodically EU-India thematic cultural years (eg cinema, music, dance, literature.) IV. ECONOMIC POLICY DIALOGUE AND COOPERATION A strengthened exchange of views and information between India and the EU on matters of mutual interest in the areas of economic cooperation will improve the business environment, leading to strengthened economic relations. Moreover, in the long term, it will help to reduce obstacles to bilateral trade and investment. For this purpose, both sides agree to the setting up of discussion platforms including several new Working Groups. Inter-linkages between the Working Groups will be through the existing Sub-Commissions and the Joint Commission.

INDUSTRIAL POLICY Cooperation between India and the EU on industrial issues and understanding of the regulatory framework has been growing in recent years. Under the 'Joint Initiative to Enhance Trade and Investment, the two sides jointly carried out general as well as eight sector specific studies on trade and investment matters. On the basis of the results of the studies,
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Indian and European business associations brought out a set of recommendations, which were placed before the 2001 and 2002 Summits. Considering the potential for a further enhanced dialogue, both sides agree to: 1. Establish a platform for the exchange of information and views on industrial policy and to enhance mutual understanding of regulatory frameworks; 2. Continue and reinforce dialogue in existing and strengthened Working Groups and encourage discussion in various sectors; 3. Exchange information on competition policy in areas of mutual interest, with a view to increasing cooperation; 4. Develop a dialogue on best practices in the field of corporate governance; 5. Establish a Working Group on Food Processing Industries. 6. Following the useful Joint Initiative studies, both sides also agree that a new initiative on enhancing bilateral Trade and Investment would be taken up. SCIENCE AND TECHNOLOGY In both India and the EU, the development of science and technology (S&T) capabilities, to help boost innovation and competitiveness, has taken centre stage in policy making. India and the EU began cooperation in the S&T sectors in the mid-1980s, which has now led to more than a hundred joint research projects. Research collaboration has mainly focused on sustainable development key themes (health, agriculture, natural resources management). The India-EC Science and Technology Cooperation Agreement entered into force on 14 October 2002. It has been a major milestone in bringing together our S&T expertise for our mutual interest. Yet the potential for more India-EU collaboration in many new and emerging hightech areas is huge. India is a priority country for collaboration under the international dimension of the EUs Sixth Framework Research Programme (FP6) and for participating in the preparation of FP7 so as to synergise it with India-EC S&T Agreement. We share a firm commitment to foster European and Indian joint research, for our mutual benefit and as a contribution to solving global issues. In order to build upon our well-established policy dialogue and partnership in S&T, India and the EU propose to: 1. Organize joint workshops on research fields of mutual interest among EUs thematic research priorities; 2. Promote participation by Indian researchers in the Research and Technological Development (RTD) Framework Programme; 3. Explore with India other scientific and technical collaboration possibilities, such as joint research in the areas of frontier technology/cutting edge technology; Seek to increase mobility, exchanges and access of researchers between India and Europe. 4. As agreed at the 2nd India-EC Science and Technology Steering Committee meeting held at New Delhi on 29th April 2005, make further pro-active use of the India-EC S&T Agreement to co-sponsor collaborative activities and research projects in areas, such as: Information Science and Technology; Genomics and Biotechnology for Health; Nanotechnology and Functional Materials; Road Transport Research and Development; High Energy Physics (Accelerator Science and Technology).
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FINANCE AND MONETARY AFFAIRS India and the EU have a strong and growing presence in international financial discussions. The introduction of the Euro has strengthened the EUs role and responsibilities in the international monetary arena. In an increasingly interdependent and global economy, where the financial and monetary policies of one major economic actor affect others, India and the EU share a common interest in developing an in-depth policy dialogue on global financial and monetary issues. For this reason, India and the EU should promote exchange of views and information between relevant institutions and policy makers in the economic and financial domain. This would allow an exchange of views on macroeconomic and financial matters of common interest. Dialogue already taking place in various fora should be further strengthened. To this end it is agreed to: 1. Hold regular consultations at an appropriate senior level on matters of common interest as and when necessary for issues considered appropriate by mutual consent; 2. Establish a regular macroeconomic dialogue on matters of common interest; 3. Identify academic institutions on both sides for increasing academic cooperation and exchange in these areas; 4. Exchange information on financial services regulatory policies, banking systems and accounting standards; 5. Encourage the European Investment Bank to continue its involvement in investment in India, and to explore strengthening it in the future. ENVIRONMENT India and the EU are committed to creating the conditions necessary for sustainable economic development. Each recognizes the interdependencies in the field of environment and the trans boundary character of many environmental problems. As major global actors, both partners are fully conscious of their capacity to play a central role in international efforts towards better environmental global governance. India and the EU are signatories and active contributors to the main multilateral instruments, including the Kyoto Protocol, and the UN Convention on Biodiversity. To realize our shared vision of making sustainable development a reality, India and the EU will seek to: 1. Strengthen the dialogue on global environmental issues with a view to building mutual understanding in particular on the UN Framework Convention on Climate Change (UNFCCC) and the Kyoto Protocol, the Montreal Protocol on Substances that Deplete the Ozone Layer, the UN Convention to Combat Desertification and the Convention on Biological Diversity; 2. Hold meetings of the Joint Working Group (JWG) on Environment on a yearly basis and develop high level visits; 3. Organize an India-EU environment forum in 2005 with stakeholders involving business, academia and civil society to exchange views and information; 4. Hold an experts meeting to exchange views on voluntary eco labeling schemes; 5. Identify key environmental issues and approaches to sustainable development where exchange of experiences and cooperation could be mutually beneficial. CLEAN DEVELOPMENT AND CLIMATE CHANGE

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India and the EU agree that urgent action is required by all countries to address the issue of climate change on the basis of equity and in accordance with their common but differentiated responsibilities and respective capabilities. Both sides are of the view that in the years to come the UNFCCC and the Kyoto process must gain further momentum. India and the EU also urge Parties to the Kyoto Protocol to achieve their targets, where obligated for the first commitment period. India and the EU further commit themselves to work together closely on future global negotiations for tackling climate change, consistent with the principles of UNFCCC beyond 2012. Accordingly, India and the EU agree to launch an India-EU Initiative on Clean Development and Climate Change. This Initiative will focus on voluntary practical measures, and be taken forward at successive India-EU Summits. In view of the particular importance of cleaner technologies for tackling climate change, both sides further agree to: 1. Identify and develop ways of widening access and overcoming the barriers to dissemination of such technologies in India and the EU and more widely; 2. Increase funding and promote public-private partnerships for research and development of cleaner technologies; 3. Promote adaptive research and development to suit the resource endowment of both parties; 4. Reduce the price gap between cleaner and less efficient technologies by seeking economies of scale; 5. Hold experts meetings on climate change, including on the Clean Development Mechanism (CDM) in 2005. It was further decided that India and the EU would take steps to encourage and promote sustainable patterns of consumption and production to lessen the causes and adverse impacts of climate change. India and the EU agree to strengthen the implementation of the CDM to promote cooperation on CDM between India and the EU and to encourage our companies to engage in CDM projects. The proposed IndiaEU Seminar on CDM would also explore the possibilities of making CDM processes more efficient, and with reduced transaction costs. India and the EU will cooperate on improving our adaptation to climate change and integrate adaptation concerns into our respective sustainable development strategies. Both sides agree to cooperate to enhance the scientific, technical and institutional capacity to predict climate change and its socio-economic impacts. Research and development on technologies and measures to adapt to climate change will be further pursued by India and the EU. ENERGY Energy is of major significance for both India and the EU. Both sides recognise the need to work towards achieving safe, secure, affordable and sustainable energy supplies. Joint efforts in the development of more efficient, cleaner and alternative energy chains will be paramount. In this context, an India-EU Energy Panel has been set up to coordinate joint efforts and discusses energy related matters of mutual interest. The Energy Panel has decided to set up Working Groups in the areas of: 1. 2. 3. 4. 5. Energy efficiency and renewable energies; Coal and clean coal conversion technologies; Fusion energy including Indias membership in ITER. Both sides agree to cooperate closely in the areas of: Promoting energy efficiency and energy conservation;
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6. Development of affordable clean energy technologies; 7. Identification of new technologies in the field of new, renewable, conventional and nonconventional energy sources; 8. Oil and gas, with a view to promoting security of supplies and stability in prices; 9. Nuclear energy; 10. Technology and expertise in exchange of energy between different grid systems and development of energy markets; 11. Development of hydrogen and fuel cells; 12. Methane recovery and use. INFORMATION AND COMMUNICATION TECHNOLOGIES Information and communication technologies (ICT) influence all areas of society, business and government. The development and widespread adoption of new ICT services and networks have powerful effects on economic and social development. India has developed a strong capacity in ICT, capturing a large and growing share of the world market for IT and software services. With its large pool of talented IT specialists and world class facilities for IT research and development, India is considered an important partner for Europe and vice versa. Many ICT researchers and businesses on both sides are keen to strengthen links with their counterparts. In 2001, India and the EU took further concrete steps to promote mutual cooperation in the development of ICT and a modern information society, as expressed in the Joint EU-India Vision Statement on IT adopted at the Second Summit in New Delhi. By building upon our already extensive information society dialogue, the EU and India have agreed to: 1. Enhance India-EU cooperation in the Seventh Framework Programme; 2. Under the umbrella of the India-EU Information Society Dialogue, exchange views on a regular basis on: E-commerce Internet governance Universal service; 3. Exchange views between relevant authorities of India and EC on these areas of common interest in appropriate fora; 4. Encourage India-EU joint research proposals and collaboration activities, in particular, for the following fields: 4G, e-government, e-education and e-health; 5. Exchange best practices and information on regulatory frameworks (internet governance, privacy and security, spamming) and for electronic communications (e.g. mobile aspects, universal service); 6. Exchange views on Telecommunication spectrum management and on roaming and interoperability of telecommunication services; 7. Work towards GEANT-ERNET connectivity with the objective of connecting EU and Indian Information networks to facilitate research and technology linkages; 8. Continue Information Society Technologies (IST) awareness through workshops and seminars. TRANSPORT India and the EU have a common interest to explore synergies in developing reliable, safe and secure transport networks and linkages, which respond to the needs of individuals and business. Efficient transport systems will increase competitiveness on both sides and enhance
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our attractiveness as investment locations. The ECs economic cooperation with India in the field of transport is well established. The India-EC Civil Aviation Project is the largest bilateral economic cooperation project in India. The project aims to strengthen civil air safety and stimulates cooperation between Indian and the EU civil aviation authorities and European aerospace industries. The India-EC Maritime Transport Project, which ended in late 2003, inter alia, contributed to electronic data interchange programme in the port sector in India. To advance our mutual interests in this important sector, India and the EU have agreed to: 1. Work towards the conclusion of a Maritime Agreement; 2. Launch a broad-based dialogue in the sector of civil aviation including closer cooperation in air transport technology, regulation and infrastructure and assess the scope for mutual benefits that could derive from such dialogue; 3. Explore the possibility of continuing and expanding the scope of the existing Civil Aviation Project; 4. Continue discussions, as a matter of priority, on a horizontal agreement between India and the EU resolving legal issues in bilateral air services agreements. SPACE TECHNOLOGY Both India and Europe are at the cutting-edge of research in the field of Space Technology, and there is a wide scope for cooperation. With a view to promote collaboration and provide an appropriate environment for fruitful cooperation in the space sector, both parties will: 1. Support further collaboration and dialogue between Indian Space Research Organisation (ISRO), Department of Space (DOS) and the European Space Agency (ESA) and the European Commission, in areas such as earth observation and remote sensing for monitoring of natural resources and environment, communications, meteorology, navigation, life and material sciences under micro gravity conditions, space exploration, space sciences and any other area relevant to our respective Space programmes; 2. Jointly identify specific new areas/projects of cooperation between the respective space agencies for further discussion/implementation through the existing mechanism for technical cooperation; 3. Conclude a framework agreement on Indias participation in Galileo Satellite Navigation Systems. PHARMACEUTICALS AND BIOTECHNOLOGY The EU is the second largest centre of biotechnology research activity in the world and Indian biotechnology is advancing rapidly. Opportunities for partnership in areas such as new discoveries, preclinical/clinical trials and bio-informatics already exist and the potential for collaboration in agri-biotechnology, food safety and pharmaceuticals is growing. Greater interaction and enhanced cooperation between respective EU and Indian administrations, industry and research institutions would lead to faster progress and greater benefits for all. For this reason the EU and India agree to: 1. Set up a Working Group on Pharmaceuticals and Biotech and in this framework they agree to hold experts meetings, as a matter of priority, with the participation of

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European Agency for Evaluation of Medicinal Products (EMEA) on the EU regulatory approach in the field of Ayurveda products; 2. Exchange information on the regulatory framework, on best practice in funding, research, environmental issues, technical exchange programmes, and infrastructure support institutions; 3. Cooperate on confronting global challenges posed by diseases such as HIV/AIDS, tuberculosis and malaria, and as part of this seek to organise a Conference on development of vaccines for HIV/AIDS, malaria and tuberculosis. AGRICULTURE India and the EU appreciate the social and economic importance for both sides to develop and preserve a dynamic agricultural sector. To create the conditions necessary for an efficient, modern and diversified agricultural sector, the EU and India have agreed to: 1. Exchange views in relation to our respective agriculture policies including modernisation and other issues; 2. Explore issues of reciprocal interest in agriculture trade; 3. Reinforce the dialogue in the restructured Working Group on Agriculture and Marine products. Both sides will identify new areas of cooperation in this Working group and meet in parallel with the newly created Joint Working Group on Sanitary and Phytosanitary (SPS) and Technical Barriers to Trade (TBTs). CUSTOMS The EU is Indias largest trading partner and India-EU bilateral trade has been showing great dynamism. Both sides agreed that trade volumes can be further boosted. The EU and India are committed to understanding the problems faced by EU and Indian companies in relation to customs controls. To help overcome various obstacles to trade and improve supply chain security, India and the EU propose to: 1. Ensure full exploitation of the agreement between the EC and India on cooperation and mutual assistance on customs matters through development of a cooperation programme by the Joint Customs Cooperation Committee; 2. Strengthen the dialogue on customs issues including issues such as valuation and classification, rules of origin etc; 3. Discuss the role of customs in the implementation of relevant trade and commercial policy issues. Both sides also agreed to: 1. Deliberate on harmonization, implementation and enforcement of customs laws, procedures and working methods; 2. Cooperate on security and facilitation in the international trade supply chain and in tackling commercial fraud; 3. Discuss and cooperate in modernization and capacity building; 4. Explore exchange of information within the framework of the customs agreement and to discuss the establishment of formal channels of communication. EMPLOYMENT AND SOCIAL POLICY
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Employment and social policies are core issues within the EU and the Government of India has put them at the heart of its policy approach. India and the EU are committed to promote full, freely chosen and productive employment with full respect for fundamental principles, fair wages and rights at work. India and the EU share a common interest to develop a policy dialogue on employment and social security to share experience, periodic exchange of views and information on: 1. Labour and employment issues, including on employment policies, restructuring, the global employment opportunities and requirements for trained manpower; 2. Human resource management in particular through training and skills development; Social security. BUSINESS COOPERATION The close association of industry and business in India-EU cooperation as well as dialogue between businesses from both sides are crucial to achieving the common goal of enhanced trade and investment. Industry and business of India and the EU are not only competitors but also partners. Regular business summits have been held since 2001. These summits have helped to create better understanding of the opportunities and obstacles in a broad variety of sectors. The recent phenomenon of Indian investments in EU especially in knowledge-based sectors of IT, Pharma, etc., has added a new dimension to overall India-EU economic relations. Both sides should build on those experiences to promote a strategic discussion on improving business links. We have therefore decided to: 1. Hold a Business Round Table on a regular basis together with the Business Summits. Industry Associations concerned on both sides will take appropriate action to continue the Business Summit and Business Round Table initiatives. The Round Table will come up with innovative ideas to further trade and investment; 2. Promote the development of networks for sectoral industrial cooperation and investment promotion; 3. Further discuss strengthening of the existing information dissemination mechanism and explore the need for new instruments for facilitating EU-India trade and investment; 4. Reinforce business-to-government dialogue based on the work undertaken under the Joint Initiative for Enhancing Trade and Investment, which should feed into the sectoral policy dialogues; 5. Operationalize the Trade and Investment Development Programme (TIDP) Web portal to provide both sides with comprehensive information on trade and investment issues.

DEVELOPMENT COOPERATION Against the backdrop of thirty years of engagement between India and EU both sides are committed to achieve progress with regard to the Millennium Development Goals and related international agendas. Since 1976, the EC has committed around 2 billion of development
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cooperation to India. The allocation for the 2002-2006 programming period is 225 million. An emphasis has been placed on health, education, water and environment . This commitment should be further enhanced. With a view to provide impetus to India-EU cooperation it is proposed to deepen development cooperation in Health and Education sectors, under which the EU - working together with the Government of India - will aim to significantly enhance development cooperation to supplement Indian programmes, namely Sarva Shiksha Abhiyan (SSA) and the National Rural Health Mission (NRHM), two important social sector programmes, for the remaining period of the 10th Five Year Plan and the 11th Five year Plan periods of the Government of India. India is itself becoming an increasingly active player in an evolving development policy: it is both a recipient and donor, a user of developmental innovations and an exporter of new concepts. Indias position as an emerging bilateral donor under the Indian Development & Economic Assistance Scheme (IDEAS) could pave the way for a fruitful EU-India dialogue on optimal implementation of development cooperation in third countries. We are committed to implementing the following actions: 1. Operationalise States Partnership programme (160 million) during 2005; 2. Exchange views on global development issues; 3. Evaluate the past fifteen years of India-EC bilateral cooperation and its impact, with the involvement of relevant authorities on both sides; 4. Further explore EC-India cooperation in development projects in third countries; 5. Aim to enhance significantly EU development cooperation for the universalisation of elementary education (Sarva Shiksa Abhiyan) and the National Rural Health Mission of the Government of India. V. DEVELOPING TRADE AND INVESTMENT India and the EU agree to take positive steps to further increase bilateral trade and economic cooperation and to tackling barriers to trade and investment. Private sector contacts would also be further developed. While trade and investment flows between India and the EU have been increasing, they remain below potential. Therefore, to enhance economic cooperation the following steps are proposed: HIGH LEVEL TRADE GROUP India and the EU agree to establish a High Level Trade Group to study and explore ways and means to deepen and widen their bilateral trade and investment relationship. The Group will report to the next summit in 2006, including the possible launch of bilateral negotiations on a broad-based trade and investment agreement. Within this framework, and in order to increase investment in India and the EU, the scope of a possible investment agreement will be explored.

WORLD TRADE ORGANISATION (WTO)/DOHA DEVELOPMENT AGENDA (DDA) India and EU are committed to a successful outcome of the Hong Kong Ministerial in December 2005 and agree to move forward the Doha Development Agenda (DDA) negotiations to a successful conclusion as a matter of priority. In this respect both parties
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agree to continue their dialogue with a view to greater convergence in areas of mutual interest. To this end the India and EU agree to strengthen their dialogue on the DDA negotiations which inter alia include Agriculture, Non-Agricultural Market Access (NAMA), Services, Trade Facilitation, Antidumping, Geographical Indications, Special and Differential Treatment, and Implementation, including as regards the relationship between Trade-related Intellectual Property Rights (TRIPs) and the Biodiversity Convention. PUBLIC PRIVATE PARTNERSHIP (PPP) Both parties agree to initiate a discussion on Public Private Partnerships (PPP) and as a first step to exchange information and experiences with a view to, inter alia, enhancing investment in infrastructure. The two sides agree to set up an Expert Group to identify policy level changes required to promote PPP. INTELLECTUAL PROPERTY RIGHTS (IPR) India and the EU attach importance to achieving effective and comprehensive protection of geographical indications (GIs). As a first step, India and the EU shall exchange information on their respective GI protection regimes and hold an expert meeting on GIs in 2005 with a view to strengthening their technical cooperation on GIs. Both parties agree to establish an appropriate dialogue to discuss IPR policy, regulatory issues, implementation and enforcement, as well as the general objectives and/or framework. To this end, both parties agree to establish a forum for a regular exchange of views and information on domestic regulatory policies and practices and enforcement issues. This forum shall also cover related technical assistance and capacity building initiatives. TECHNICAL BARRIERS TO TRADE (TBT)/SANITARY AND PHYTOSANITARY (SPS) ISSUES The two sides agreed to establish a TBT/SPS Working Group and to hold the first meeting before the end of 2005. This would deepen the dialogue on TBT and SPS issues respectively with a view to facilitating bilateral trade and increasing market access. TRADE DEFENCE INSTRUMENTS India and the EU have agreed to activate the expert meetings according to the already agreed terms of reference. SERVICES India and EU agree to exchange information and initiate a dialogue on regulatory policy including Mutual Recognition Agreements (MRAs) and domestic regulations and market access issues related to services. Priority areas should be agreed before the end of 2005. PUBLIC PROCUREMENT Both parties agreed to exchange information on public procurement policies.

CHAPTER III
REVISED JOINT ACTION PLAN

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2.1 EUROPEAN UNION INDIA STRATEGIC PARTNERSHIP REVIEWED 1 Introductory Observations The European Union (EU) India Strategic Partnership has been in formal existence since 2004 and has been evolving substantially thereafter. However the EU-India Strategic Partnership has not received the public prominence as it seems to get overshadowed by Indias pre-occupations with managing its long-standing and time tested strategic partnership with Russia and giving impetus to its evolving strategic partnership with the United States. Nevertheless, it can be analytically stated that in terms of substantial progress, formulation of multi-dimensional blueprints for joint development of the strategic partnership and moving forward and establishment of institutional mechanisms to carry the blueprint further, the EU India Strategic Partnership scores heavily in comparison with the RussiaIndia Strategic Partnership and the US-India Strategic Partnership. This has been made possible for two very good reasons. Firstly, as opposed to the strategic partnerships with Russia and USA, there are far more issues that unite the European Union and India than divide them in terms of political, economic, strategic and security perceptions. Secondly, India seems to be more comfortable with the EU-India Strategic Partnership as its strategic power differentials do not stand out as glaring as in Indias strategic partnerships with Russia and the United States. Yet a more significant reason is that while Indias engagement with Russia and the United States commenced meaningfully in 1947 onwards, after its independence, Indias engagement with the major countries of the European Union, namely, Britain, France and Germany has been long-standing and pre-dates 1947. Britain ruled India for nearly two hundred years, France had colonial settlements in India for about the same time and Germany though without any colonial linkages to India was strong in the cultural fields with eminent German scholars steeped deeply in Ancient Indian history, Sanskrit epics and literature. Each of these three major countries of the European Union had therefore deep and positive imprints in India. This is a strong contributory factor to the evolution of a substantial EU-India Strategic Partnership and imparts a promising future. The EU-India Strategic Partnership is a multi-dimensional partnership and the Joint Action Plan formulated covers cooperation in every conceivable area in the realms of political, economic, scientific and technological, cultural and strategic cooperation. For those interested in full details of the EU-India Joint Action Plan, the same can be found on the European Union's website. The Joint Action Plan and the Annual EU-India Summits (the 8 th Summit was held in New Delhi on November 2007) proceedings, when perused would highlight how painstakingly the details have been worked out in all dimensions of cooperation. In terms of recognition of the European Union as having potential to emerge as a powerful voice in international affairs, India was one of the first countries to accord diplomatic recognition with it, then known as EEC. However, it took the European Union nearly 30 years to recognize a similar potential of India. China was the big fascination for the European Union and it is only at the turn of the millennium that India started figuring in the strategic calculus of the European Union. By 2005, a senior EU official declared that: You look at India and you see the future. By 2030 India will probably have overtaken as the worlds most populous country. It will be the worlds largest democracy and the worlds third or fourth largest economy and further that yet China will not be alone in reshaping the global economic order. In India there is an economy with the potential to match it. The European Unions interest in India was not only restricted to the economic sphere. There was
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By Dr. Subhash Kapila. The author is an International Relations and Strategic Affairs analyst. He is the Consultant, Strategic Affairs with South Asia Analysis Group. 26

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a growing European Union interest in Indias emergence as an important political actor on the international scene and also Indias strategic potential. This impelled the holding for the first time in May 2006 of the European Union India Strategic Dialogue. It has now emerged as a useful institutionalized mechanism for the European Union and India to discuss and exchange views on (1) Security situation and security challenges existing at the global and regional level (2) Counter-terrorism responses, cooperation and intelligence sharing (3) Conflict-resolution initiatives in the worlds troubled regions and attempt coordination of responses (4) WMD proliferation and (4) Furtherance of democracy and human rights as basis for political stability in troubled regions. In January 2008, in an address in New Delhi entitled Re-visiting EU-India Relations: Prospects for Deepened Strategic Partnership to Face Global challenges the EU Commissioner (Minister-Level) for External Relations in his enumeration of the prospects and challenges indicated an implicit emphasis in the security dimensions of the EU-India Strategic Partnership. In terms of a review of the EU-India Strategic Partnership this Paper would like to confine itself to a review of the strategic significance and strategic implications of the EU-India Strategic Partnership. The following aspects will therefore be reviewed: 1. 2. 3. 4. Strategic Significance of the EU-India Strategic Partnership EU-India Strategic Partnership: The Global Implications EU-India Strategic Partnership: The Regional Implications EU-India Strategic Partnership: Future Prospects

2.2 STRATEGIC SIGNIFICANCE OF THE EU-INDIA STRATEGIC PARTNERSHIP Geo-strategically, the European Union India Strategic Partnership is a very significant one in that it binds as strategic partners the European continent with India as an Asian power with sub-continental proportions and an India emerging as a global power. In geo-strategic terms, both the European Union and India carry great significance which cannot be ignored in the global strategic calculus. Before the United States appeared on the international scene forcefully in 1945 after the end of World War II, the international strategic and political affairs were controlled by the major countries of the European Union. The integration of the European countries into a European Union has consolidated the combined strengths of the European nations in a most comprehensive manner namely strategic, political and economic. The common EU currency the Euro has emerged as a strong global currency tempting oil-rich countries and China to switch their financial reserves from the dollar to the Euro in a bid to embarrass United States financial power globally. Strategically, the European Union countries are the pillars of the Atlantic Alliance and NATO led by the United States. Out of the twenty seven European countries, twenty-three are concurrently members of NATO also. By virtue of the EU-NATO countries linkage the Western world in international politics and strategic terms emerges as an unbeatable combination with the combined strengths of EU and USA. It is the European Union that adds and reinforces the United States clout. Indias geostrategic significance lies in its sub-continental proportions acting as a bridge between the Middle East and South East Asia. Its strategic salience is heightened by its national power attributes and its resurgent economy which in the next 20-30 years could overtake or equal China. Its nuclear weapons arsenal and the size of its conventional military forces make it an important factor to reckon with in the global and Asian military balance. In geo-political terms, the European Union-India strategic Partnership encompasses the combined political weight of the Western World and the emerging global power of India. India does matter today not only in South Asia but also as the dominant maritime power in the Indian Ocean region. Its intended area of influence stretches from the Red Sea of the
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Straits of Malacca and encompasses Central Asia. Geo-economically, the significance of the European Union-Indian Strategic Partnership assumes global economic connotations when India as a virtual economic superpower in the making plugs-in into the combined economic strengths of the European Union and the individual economic strengths of EUs major countries. This is a complementarity which works both ways. Lastly in terms of strategic significance, India as the largest democracy in the world and the really prominent one in Asia, through this partnership joins hands with the largest cluster of democracies in the world and integrated as the European Union combined together it become a powerful voice. Overall, therefore, the European Union-India Strategic Partnership is a mighty strategically significant one in the most comprehensive contemporary connotations of a strategic partnership. 2.3 EU-INDIA STRATEGIC PARTNERSHIP: THE GLOBAL IMPLICATIONS In terms of global implications, the EU-India Strategic Partnership has to be viewed at two levels. The first level is viewing in terms of the global balance of power and international alignments. The second level is viewing the EU-India Strategic Partnership in terms of multi-lateralism in the global strategic field. In terms of the global balance of power and international alignments it does in a sense group India with the Western Powers, both individually and collectively. Individually, India has established strategic partnerships with the United States, United Kingdom, France, Germany and their allies in East Asia, like Japan, Australia and Singapore. In the collective sense, the EU-India Strategic Partnership joins India at a different level with the United States and the NATO countries. As stated earlier twenty-three out of the twenty-seven countries of the European Union are NATO member countries. This may not have been the intended aim or stated aim of India in entering the EUIndia Strategic Partnership, but by deductive analysis the linkages do work out that way. In terms of achievement of multi-lateralism in the international order, the EU-India Strategic Partnership heralds bright prospects. Both the European Union and India lay great stress on the imperatives of multi-lateralism in the international order. For the European Union and India this is not some idle precept. It is a dynamic precept in operation in their respective national existence and social structures. The EU-India Strategic Partnership in terms of their existing multi-lateralist political functioning can extend this experience and wisdom to the international order in conflict resolution initiatives across the world and softening tensions. In actual strategic and political practice, both the European Union countries and India have despite any strategic partnerships with third countries adopted independent stances on global issues. The most significant observation that emerges from the EU-India Strategic Partnership though not analytically argued so far or politically stated so far is that there is an incidental strategic convergence between the European Union and India on the place and role of Russia in the international order. Russia figures highly in both European and Indian perceptions in political, economic and strategic terms. Indias strategic partnership with EU therefore does not impinge on Russia-India Strategic Partnership. Summing up the global implications of the EU-India Strategic Partnership, it needs to be recorded that this partnership adds a third pole of multi-lateralism in the US-Russia and the US-Russia plus China line-up in the global strategic order.

2.4 EU-INDIA STRATEGIC PARTNERSHIP: THE REGIONAL IMPLICATIONS

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The regional implications of the EU-India Strategic Partnership need to be examined at three different yet inter-connected levels. These three levels are firstly its implications in relation to China, secondly in relation to its implications for West Asia and South East Asia, and lastly in relation to South Asia. China has been brought in for discussion in the regional context as Chinas strategic impact is more relevant to India, South East Asia and West Asia, and South Asia. It is in these regions that China impinges heavily on the strategic interests of the Western world and on India too. China to begin with was the focal point of the European Unions strategic interest till a few years back. The EU now divides its strategic attention between China and India. India is receiving more weighty strategic attention from the European Union for reasons that it offers better chances of convergence of strategic interests and Indias rise to global power status would be a benign one. The EU-India Strategic Partnership has the potential to have a major impact on China as in European Union perceptions and those of its major member countries, India is perceived as the only country in Asia with the strategic, political and economic power potential to act as a counter-weight to China. This counter-weight perception is not perceived necessarily in military terms only but rather in political and economic terms. While China has made its displeasure and strategic concerns amply clear on the US-India Strategic Partnership it has yet to come out vocally on the EU-India Strategic Partnership. China has also been unhappy with the European Union countries for not lifting the arms exports ban on China in deference to United States pressures. The European Union and India have substantial strategic interests in West Asia and desire that attempts be made for conflict-resolution initiatives to succeed in Lebanon, in Palestine, in Iraq and on US-Iran confrontation over the nuclear program issue. Chinas role in West Asia has not been a benign one. China perceives West Asia with its military linkages to Muslim countries of the region as a counter-strategic pressure point against the United States. The EU- India Strategic Partnership combining the traditional influence of European nations with the Gulf oil-rich monarchies and India's evolving strategic influences with these countries can act as a positive influence in the region to counter-act Chinas military diplomacy in the region. In South East Asia, in recent years India's Look East policy has brought valuable results in integrating Indian and South East Asian strategic interests. The European Union countries too had strong strategic and economic interests in the region but these got diluted due to United States and Wests strategic distractions in the Middle East. The EU-India Strategic Partnership provides the potential for jointly extending European Union and India's strategic interests in South East Asia and fills the vacuum created by lack of US interest on the region lately. In South Asia, the major countries of the European Union like UK, France and Germany had more than a proportionate strategic interest. Till lately this was at Indias expense whether it pertained to Pakistan, Sri Lanka or Nepal. Possibly, this was an extension of falling in line with US policies in the region till the advent of the USIndia Strategic Partnership. A major implication of the EU-India Strategic Partnership that would logically arise is that the European countries would increasingly recognize India's role as the regional power in South Asia and further that India would expect that the European Union as a strategic partner would be responsive to India's strategic sensitivities in South Asia and contiguous regions.

2.5 EU-INDIA STRATEGIC PARTNERSHIP: THE FUTURE PROSPECTS

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The European Union more specifically and India too at the highest levels have publicly affirmed that the EU-India Strategic Partnership enjoys bright future prospects. One should not take this as just one more instance of political rhetoric. As earlier stated in the Paper the future prospects of the EU-India Strategic Partnership are bright because there are more strategic issues that unite the European Union and India than those that can divide them. More importantly, the EU-India Strategic Partnership has evolved naturally from an economic dimension to begin with and then graduated to the political and strategic dimensions to now emerge as a comprehensive strategic partnership. The EU-India Strategic Partnership scores heavily over the Russia-India Strategic Partnership and the USIndia Strategic Partnership for a host of reasons, some of them being the following: 1. India's political and economic engagement with European countries predates its engagement with Russia and the United States. 2. Similarly, India's military-to-military contacts both in terms of defense equipment acquisitions and training pre-date its military contacts with Russia and the United States. 3. Both of the above therefore provide a useful foundation for further and future strengthening of the EU-India Strategic Partnership. 4. The EU-India Strategic Partnership as compared to India's strategic partnership with Russia and USA can be said to be more equitable as glaring power differentials do not exist between EU and India. 5. Russia and United States strategic policies are more determined by their global strategic interests in which at times India's strategic interests get marginalized and thereby leading to political irritants. On the other hand, the European Union's strategic focus and policy perceptions will continue to be determined by regions contiguous to India and where both EU and India seem to have a convergence of strategic interests. 6. Multi-lateralism as a foreign policy precept is vocally espoused by both the European Union and India. This itself provides a solid foundation for bright future prospects for the EU-India Strategic Partnership in a challenging global security environment. No strategic partnership would be devoid of challenges and despite all the positive factors enumerated above a major challenge would need to be faced squarely more by India than the European Union as their strategic partnership moves into the future. Analytically, it can be asserted that India's political leadership tends to view strategic partnerships only in terms of political economic, science and technology and cultural relations. India's political leadership tend to view the terms strategic partnership term in terms of long range time-wise rather than viewing strategic partnerships in the perspective of security threats and security cooperation. This may lead to a European Union perception that India s sole interest in an EU-India Strategic Partnership is confined to viewing it as one more political label adding to its quest for global power status. The European Union's hopes and expectations from an EU-India Strategic Partnership would seem to focus on expecting India to play an active and assertive role in the security management of India's contiguous regions where both the European Union and India seem to share strategic convergences. The European Union would therefore legitimately expect that arising from the EU-India Strategic Partnership, India's active security roles in its contiguous regions would be determined by India's national security interests and not by domestic political compulsions which are not the concern of the European Union.

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CHAPTER IV
EU-INDIA TRADE
The study on the potential implications of a free trade agreement between the EU and India is composed of four principal elements. These are: 1. An analysis of trade and production structures in India and the EU: Implications for non-tariff barriers, services and regulatory parts of an FTA Projected FDI and economic growth in India 2. Trade policies in India regarding non-tariff barriers, services and regulatory issues; nature of the main obstacles to trade and the implications for the scope and content of an FTA. 3. Implications of deep integration under an FTA between India and the EU, in terms of both potential legislation and implementation issues within Indias administrative system. Trade and production structures and implications for non-tariff barriers, services and regulatory parts of an FTA This part of the study provides an analysis of some of the key issues arising from a potential EU-India FTA through an examination of key diagnostic indicators for India and the EU, drawing directly on the methodology in the Sussex Framework. The central features of the Sussex Framework involve the identification of those issues which need to be borne in mind in evaluating a potential RTA, and then using appropriate indicators for such an evaluation. In the first instance, preferential trade liberalization involves a process of shallow integration. Shallow (or negative) integration can be defined as the removal of border barriers to trade, typically tariffs and quotas. As is well known, the potential net benefits from shallow integration are inherently ambiguous. This arises because of the likelihood of both trade creation (which is welfare increasing) and trade diversion (which is welfare reducing). Trade reaction arises when more efficiently produced imported goods from the new partner country replace less efficient domestically produced goods. Trade is created and yields welfare gains. Trade diversion occurs when sources of supply switch away from more efficient nonpartner countries to less efficient partner countries. This arises because the less efficient partner countries gain tariff-free access within the RTA and may be able therefore to undercut more efficient non-partner countries. Trade diversion therefore reduces welfare. The net welfare impact of an RTA will depend on the relative size of the two effects. In addition to these effects, there may be further welfare gains arising from the induced growth effects stimulated by, for example, productivity growth, increased specialization, and/or positive externalities between firms, sectors or across sectors (e.g. between manufacturing and services) which are typically more likely to arise in the presence of deeper integration. In contrast to shallow integration, deep (or positive) integration involves policies and institutions that facilitate trade by reducing or eliminating regulatory and behind-the-border impediments to trade, where those impediments may or may not be intentional. These can include issues such as customs procedures, regulation of domestic services production that discriminate against foreigners, product standards that differ from international norms or where testing and certification of foreign goods is complex and perhaps exclusionary, regulation of inward investments, competition policy, intellectual property protection and rules surrounding access to government procurement.

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The term RTA is employed when referring generically to a preferential trading arrangement between countries. The term FTA is used wherever the arrangement under consideration is that of a free trade area divided into three sections, which build closely on the key features of the Susse Framework. First, we detail the underlying policy environment in India, as well as identify key aspects of the Indian economy and its evolution over time. Secondly, we focus on existing and historical patterns of trade both by sector and by partner country and use selected indicators in order to identify the likelihood for both trade creation and trade diversion. Lastly, we turn to the issue of deep integration and consider qualitative and quantitative evidence which can shed light on the potential welfare gains which could arise from deeper integration. Brussels, 10 December 2010 1. The Eleventh European Union - India Summit was held in Brussels on 10 December 2010. The Republic of India was represented by the Prime Minister, Dr Manmohan Singh. EU was represented by Mr Herman Van Rompuy, President of the European Council, and Mr. Jose Manuel Duro Barroso, President of the European Commission. 2. Leaders emphasized that EU and India, which share common values relating to democracy, rule of law, civil liberties and respect for human rights, agreed to reinforce their strategic partnership for their mutual benefit in all areas and to better contribute to the resolution of the challenge of the twenty first century. They discussed bilateral, regional and global issues of common interest and concern. In the context of overall EU-Indian interaction, leaders noted Indias development priorities as well as the new dimension of EU, following the entering into force of the Lisbon Treaty. Bilateral issues 3. Recognizing the value of an ambitious and balanced Broad Based Trade and Investment Agreement, which will bring significant economic benefits to both sides and further strengthen the bilateral economic relationship, leaders welcomed the significant progress recorded during recent negotiations, agreed on the contours of a final package, and reaffirmed the importance of an ambitious and balanced conclusion in the spring of 2011. 4. They welcomed the business summit held in the margins of the summit and agreed that enhanced cooperation between business organizations from EU and India would greatly benefit their respective companies and improve opportunities for cooperation. 5. Leaders welcomed increasing cooperation in the field of security and defence. They agreed to pursue EU-India dialogue and cooperation in this area, including in the context of counter-piracy naval operations and more broadly in support of the UNSC resolutions. 6. EU and India condemned terrorism in all its forms and manifestations and reaffirmed their united stance in combating threats to international peace and security caused by terrorist acts wherever they take place. Leaders welcomed the EU-India Joint Declaration on International Terrorism.

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7. Building on the 2008 EU-India Joint Work Programme on Energy, Clean Development and Climate Change, leaders reaffirmed their commitment to cooperation in these fields, with a view to enhancing energy security, energy efficiency and promoting the development of renewable energy. They agreed that the results of the Joint Work Programme should be presented at the 12th India- European Union Summit. Lastly, leaders looked forward to the early conclusion of the EU-India Agreement for Research and Development Cooperation in the Peaceful Uses of Nuclear Energy. 8. EU and India expressed satisfaction with recent progress in negotiations on a maritime transport agreement and called for the continuation of the negotiations aiming at the conclusion of a mutually beneficial agreement. They also called for the early implementation of the civil aviation agreement. 9. In the field of space, the leaders acknowledged the active cooperation pursued by space agencies and industries of the two sides for developing, launching and operating Earth Observation and Communication Satellites through appropriate bilateral relations. The leaders welcomed the recent formation of ISO-ESA Joint Working Group on Earth Observation to concretize the cooperation areas. 10. They committed to a swift finalization of the agreement on satellite navigation initialed in 2005 and earnestly work toward a technical agreement on the use of the frequency spectrum. 11. Recognizing the important implications of the movement of people for India and EU, they agreed to explore initiatives that could lead to a regular, comprehensive and structured dialogue on migration issues, with a view to deepening cooperation in this field. 12. Both sides reiterated their joint commitment to the MDGs, with an emphasis on health and education and a special focus on vocational training. In this context, EU and India will sign the next joint development cooperation strategy (Multi-Annual Indicative Program 2011-13). 13. Both sides welcomed the new dynamic India-EU and Member States research and innovation partnership for more coordinated cooperation to tackle major societal challenges. The leaders agreed that cooperation partnership dialogues should be pursued so as to make a contribution to the objectives set out in the Indias Decade of Innovation and the Europe 2010 Flagship Initiative Innovation Union. 14. EU and India signed a Joint Declaration on Culture. 15. EU and India will sign a Memorandum of Understanding on Statistics. Regional issues 16. EU and India reiterated their common interest in a stable, peaceful and inclusive Afghanistan free from terrorism, as well as their support to the Kabul Process building upon broad international partnership towards further Afghan responsibility and ownership
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in security, governance and development. They also underlined the need for more effective regional cooperation for the stabilization of Afghanistan and expressed their continued commitment to an ongoing dialogue to this end. The leaders agreed that terrorism must be combated firmly and expressed concern at the continuing existence of safe havens, including in the cross border dimension. 17. They acknowledged their respective humanitarian assistance to Pakistan, voiced a shared hope for a speedy recovery and emphasized that a democratic and prosperous Pakistan was in the interest of the entire region. They called upon Pakistan to expeditiously bring all the perpetrators, authors and accomplices of the Mumbai attacks to justice. 18. EU and India exchanged views on regional integration and agreed to continue efforts to enhance cooperation in the context of SAARC and other fora, as well as between SAARC and EU. Leaders recognized that closer regional cooperation is crucial for the development of South Asia. Global issues 19. Leaders reviewed recent developments aimed at reinforcing global economic governance in particular in the G20 context. In this regard they welcomed the agreement on the IMF reform reached at Seoul which will strengthen the legitimacy of the IMF and will increase the involvement of emerging economies in global economic governance. Leaders welcomed the commitments made at the G20 Seoul Summit to promptly bring the Doha Development Round to an ambitious, comprehensive and balanced conclusion in 2011, consistent with the mandate of the Doha Development Round and built on the progress already achieved. They also reaffirmed their commitment to resist all forms of protectionist measures. Leaders also reaffirmed their determination to contribute positively to address the issue of global imbalances. In this respect they welcomed the agreement reached in Seoul on a process that will set the base for closer coordination and assessing on imbalances at the global level and they called on the G20 to make rapid progress in the course of 2011 on the implementation of this process. 20. In the context of the process of negotiations on climate change EU and India voiced their firm resolve to continue working for an ambitious, comprehensive and balanced post 2012 agreement as soon as possible based on the principles of the United Nations Framework Convention on Climate Change. In parallel, EU and India are committed to further develop their bilateral cooperation and policy dialogue in this field. In particular, EU is ready to cooperate with India in implementing its National Action Plan on Climate Change. 21. EU and India reaffirmed their commitment to global and non-discriminatory disarmament and to preventing the proliferation of weapons of mass destruction and their delivery systems. Leaders pledged closer cooperation aimed at providing a robust nuclear nonproliferation regime and, in particular, looked forward to a prompt commencement of negotiations on a Fissile Material Cut-off Treaty in the Conference on Disarmament. They reaffirmed their commitment to diplomacy to resolve the Iranian nuclear issue and expressed the need for Iran to take constructive and immediate steps to meet its obligations to the IAEA and the UN Security Council.

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CHAPTER V
Future of EU-India relations
Certainly, summit meetings between the EU and India have been taking place since the year 2000, but progress was slow, the Copenhagen summit in 2002 bringing a certain setback focusing too strongly on human rights issues-an attitude resented by the Indian side. New movement came with the European proposal to negotiate a strategic partnership with India, the document being sealed in The Hague in November 2004. The momentum was triggered by the somewhat belated recognition that India is set to follow China's development of continuous high economic growth rates, giving her the potential of becoming a player in world politics. The United States, having India offered their "Next Steps in Strategic Partnership" in early 2004, had shown the way. In September 2005, under British Presidency an "EU-India Joint Action Plan" was concluded giving the "ED-India Strategic Partnership" a clear and broad framework within which the relations shall expand. The EU and India have some significant features in common on which to build their strategic partnership. Both are evolving players in the world scene, the EU being economically a powerhouse but still having deficiencies in its "Common Foreign and Security Policy" and, even more so, in its "Common Security and Defence Policy". India is economically still comparatively weak, its main anc1 growing asset being its potential as a trading partner because of its huge market and, above all, its people-even more so once the enormous pool of talent will be fully tapped. Widely emphasized is the fact that both, the EU and India, are resilient democracies that do not harbor and are reluctant to support aggressive policies. In more concrete terms the ED offers India its vast experience and capabilities in the scientific, technological and educational field as India will open its research institutions and laboratories for ED researchers. A prominent case in point is the invitation to India to participate in "Galileo", the future European Satellite Navigation System. Collaborative research projects will take place in areas such as genomics, nanotechnology, bio-technology, high energy physics etc. All this will happen in full competition with other players around the globe. In strengthening its competitiveness, the ED (ED member states) needs to adapt its legal and institutional systems in particular in the field of science and education to make itself ready and enough attractive to match offers of other, mainly English speaking countries. For Europe I see no way other than to build enough institutional capacities that follow English speaking curricula, the respective national language being offered as an additional asset. If Europe fails to bring its youth together with the youth of India in order to interact in full respect of each others cultural specificities and riches, if Europe fails to devise a migration policy that opens up to newly created capacities in other regions then, despite all its past achievements, it will not be able to profit from the huge pool of talent existing in India and other Asian countries. As far as trade is concerned, the 25 ED members taken together are India's number one trading partner, both sides are however fully aware that globally speaking commercial exchanges are still very low, though growth rates are impressive. Much more can be done. In the absence of a successful conclusion of the Doha Round, the High Level Trade Talks, started in 2005 between the ED and India, should be more ambitious aiming at an agreement that satisfies the growing needs and propositions of both partners. That a convergence of views may be possible was shown during the current multilateral trade negotiations when suspension, if not rupture, was the result not because of intransigence of the ED to move in favour of developing countries-as the Doha Development Agenda demands-but because of the inflexibility of United States' industrial and agricultural lobbies. With regard to energy resources and energy security, the EU and India should increase
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cooperation in particular in the non-conventional field. The present high oil price makes it increasingly commercially interesting to explore all kinds of alternative energy sources that combine national availability with environmental sustainability. The EU, being extremely vulnerable in the energy field, has new solutions to offer and should decisively strengthen its cooperation with India in this crucial matter. Last, but by no means least in this short enumeration meriting has to be made of the importance both, the EU and India, attach to the cultural diversity of its people. At issue is not a melting pot where the individuality of all these historically grown multiple identities are being curtailed, but a colourful scheme that allows each and every group and, indeed each and every individual to grow within the limits of mutual respect. In an age of looming divisiveness and predictions of a "clash of civilizations" putting this aspect to the forefront and to interact and, learn of each other's achievements and problems is of paramount necessity. Cooperation with the EU is always somewhat more cumbersome and slower than with other entities. But India should not shy away from fully engaging in this path-as she certainly will engage with all other important players around the globe. The EU and India's main political commonality lie in working towards a global system where every country can not only peacefully co-exist but co-operate in a way that is beneficial to all, or at least to most. In this world of weapons of mass destruction soft power, not hard power is the tool to use. There is no interest and no longterm advantage in trying to contain others in order to prosper by neglecting the needs of others. History shows peaceful coexistence by accommodating each other's positions is possible, in most cases. The EU and India, players in the same league, should to their respective benefit cooperate having this goal in mind. The strategic partnership between the European Union and India is vital to Europe's future prosperity and security, Dr Charles Tannock MEP said in the EU-India summit held in Brussels on 7th December 2010. Dr Tannock, coordinator for the European Conservatives and Reformists Group on the European Parliament's Committee on Foreign Affairs, said the summit presented a chance for the EU and India to reaffirm their alliance based on shared values of democracy, liberty and human rights and the summit should also act as a boost to efforts to negotiate a free trade agreement between the EU and India, a move which would further reinforce the growing economic and commercial importance of the strategic partnership. He also said that the summit presented the EU with an opportunity to support India's leadership in the strife-torn South Asia region, to help make India central to the reconstruction of a post-conflict Afghanistan and to work with India on combating international terrorism emanating from its neighbourhood and the Naxalite insurgency domestically. India is a business hub for all the other countries in the world. Europe is also interested in doing business in India as both Europe and India are in talks to conclude free trade agreement. By this both EU and India will be benefited. India is a diplomatic heavyweight and it deserves the EU's strong support both in the South Asia regional context and at the UN, where India's case for permanent membership of the Security Council is growing ever stronger.

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CONCLUSION
The European Union with its geographical enlargement alongside NATO's geographical enlargement is increasingly acquiring a far more important say in global affairs and in India's contiguous regions. The EU-India Strategic Partnership is therefore a significant and strategically relevant partnership for India's emerging strategic profile. The EU-India Strategic Partnership is a partnership between equals and being an equitable relationship it facilitates a smoother functioning and an easier path to work out strategic convergences between the European Union and India in terms of strategic management. The study on the potential implications of a free trade agreement between the EU and India is composed of four principal elements. These are: 1. An analysis of trade and production structures in India and the EU: Implications for nontariff barriers, services and regulatory parts of an FTA Projected FDI and economic growth in India 2. Trade policies in India regarding non-tariff barriers, services and regulatory issues; nature of the main obstacles to trade and the implications for the scope and content of an FTA. 3. Implications of deep integration under an FTA between India and the EU, in terms of both potential legislation and implementation issues within Indias administrative system. All the EU-India issues such as Bilateral, Regional and global were discussed in Brussels Summit held on 7th December 2010. However, the future success of the EU-India Strategic Partnership would depend heavily on how much India can invest strategically in this partnership in terms of playing active and assertive security roles in regions in which both the European Union and India have vital strategic and security interests.

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