Page 23 - Policy Economic Report - Jan 2026

POLICY AND ECONOMIC REPORT
OIL & GAS MARKET

The multifaceted partnership, guided by the 'India-EU Strategic Partnership: A Roadmap to 2025'
(adopted in 2020), continues to evolve towards greater mutual prosperity and global stability in the
following aspects:

Figure 9: Key pillar of India-EU engagement

Source- Consilium Europa.eu

Trade and Economic Focus

Trade has been a cornerstone, with the EU emerging as a significant partner. The bilateral merchandise
trade between India and EU has grown substantially, reaching $136 billion in 2024-25, with EU exports to
India including machinery, transport equipment, and chemicals, and imports from India featuring
machinery, chemicals, base metals, mineral products, and textiles.

Moreover, from 2019 to 2024, India-EU bilateral trade in services exhibited steady growth, with Indian
exports increasing from EUR 19 billion in 2019 to EUR 37 billion in 2024. Further, imports from the EU also
saw an increase, reaching EUR 29 billion in 2024.

Defence and Security

India-EU security and defence ties have deepened significantly in 2025, marked by the Leaders’ Statement
from the February College of Commissioners’ visit to India which agreed to explore a Security and Defence
Partnership and included discussions between the EU Commissioner for Defence and Space and India’s
Minister of State for Defence. This momentum continued with a December 2025 delegation from the
Society of Indian Defence Manufacturers visiting Brussels to engage with the EU Commissioner, fostering
industrial cooperation.

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