India is the world’s most populous democracy, as well as the most populated country (1.4 billion). The World Bank forecasts 6.5% growth for 2022-23 and the country is on track to surpass Japan and Germany to become the world’s 3rd largest economy by 2030.
As the world’s two largest democracies, the European Union and India share a commitment to a rules-based global order, effective multilateralism and sustainable development. In 2004, India became one of the EU’s strategic partners.
In 2022, the EU and India celebrated 60 years of bilateral relations:
- The EU was India’s third largest trading partner in 2021
- EU foreign direct investment in India reached €87 billion in 2020
- Almost 15% of Indian exports went to the EU in 2021
- €95.5 billion in trade in goods and services in 2020
- 6 000 EU companies in India create 1.7 million jobs directly and 5 million jobs indirectly
- The European Investment Bank (EIB) has invested over €3 billion in infrastructure, energy and climate projects
In addition, EU-India Joint Declarations were adopted to intensify work on connectivity, and water and resource efficiency through circular economy. In 2023, the EU and India also launched a Trade and Technology Council focusing on digital transformation and green technologies.
Under the Neighbourhood, Development and International Cooperation Instrument (NDICI-Global Europe), India benefits from €90 million in grant funding over the 2021-27 period. India also benefits from a number of multi-country EU programmes.
Climate, Energy, Trade and Innovation Support in India (Commission Implementing Decision on Financing as an Individual Measure)
Our flagship initiatives
Team Europe in India brings together the EU, the European Investment Bank, France, Germany and the private sector to deliver on Global Gateway objectives.
- Sustainable urbanisation
- Smart cities: for a more inclusive and sustainable urban development by supporting green and sustainable upgrading and rehabilitation of urban infrastructure, with a focus on integrated waste management and climate-sensitive urban management
- Access to water: enabling a 24/7 water supply in Chandigarh, including rehabilitation of 242 km of networks
- Urban mobility: European investments for metros across India
- Sustainable mobility: through a new dedicated EIB technical hub in Delhi
- Waste solutions for circular economy: implemented through the Nationally Appropriate Mitigation Action facility (NAMA)
- EU-India Clean Energy and Climate Partnership: continued support for energy efficiency and renewable energy, including solar, green hydrogen, wind, biofuels and energy storage, (smart) grid integration and financing, climate mitigation and adaptation
- EU-India Green Hydrogen Partnership: support for policy dialogue and pilot projects on green hydrogen and off-shore wind technology and expertise, supporting EIB’s new €1 billion green hydrogen fund
- Energy efficiency: scaling private sector business models for sustainable electrification of social infrastructure (DESIREE blending programme)
- Energy transition: supporting a just energy transition in coal producing regions
- Green and sustainable finance
- Loans to green financial institutions: financing small and medium-sized enterprises (SMEs) to support green tech development (Kuali fund). This also supports transfer of best practices between Latin America and the Caribbean, and India
- Green finance market awareness: providing expertise to public and private financial institutions, helping facilitate specific credit lines (for energy efficiency, clean energy transition, electric vehicles projects), as well as building new pipelines of investment
- Infrastructure investment: focusing on energy storage and climate financing strategies for private banks through the EU-IFC Accelerating Climate Smart Infrastructure (ACSIIS) in South Asia partnership
- Global Green Bonds Initiative: supporting the issuance of green bonds in India and its green finance frameworks with EIB
- Sustainable trade and agriculture
- Free trade agreement: continued support to the ongoing negotiations, including through the establishment of the Federation of European Businesses in India
- Indian and EU private sector cooperation: supporting responsible business conduct through a new platform
- Sustainable consumption and production: integrating sustainable considerations when dealing with plastic waste management, cotton and bamboo products, organic foods, fair trade, clean technology, waste management and financial inclusion (SWITCH Asia programme)
- Sustainable agricultural supply chains: supporting through equity investment (Huruma Fund)
- Agro-ecology, forestry and natural farming: supporting in a manner consistent with the Kunming-Montreal Global Framework on Biodiversity