The EU-India partnership: time to go strategic? go to time The partnership: EU-India European Union Institute for Security Studies How can India and the EU expand their relationship from its current economic dimension Indian Council of to a broader, security-based dimension? Why is this not happening in spite of expressed World Affairs willingness and the clear reciprocal benefits that would ensue? Is there a lack of frank dialogue on sensitive areas, or is there a more general lack of mutual understanding? The various Indian and European contributors to this volume – the result of long-standing collaboration between the Indian Council of World Affairs (ICWA) and the European Union Institute for Security Studies (EUISS) – assess incipient progress and explore ways to advance India-EU relations in the bilateral and multilateral dimensions of the Strategic Partnership. Although it was launched in 2004, a consensus emerges that such a partnership cannot be called strategic as yet. Continuing discussion and analysis of pressing issues is thus necessary in order to facilitate a breakthrough. This book contains detailed proposals for widening the scope of cooperation to both traditional and non-traditional security issues, such as counter-terrorism, security sector reform in third countries and energy. It also explores the potential for India and the EU to reach consensus in international governance forums, with particular emphasis on economic governance, as well as prospects for effective inter- regional cooperation on the main global security issues, such as peacekeeping and maritime security. The EU-India partnership: time to go strategic? Institute for Security Studies Union European ISBN 978-92-9198-208-0 QN-31-12-952-EN-C doi:10.2815/29869 published by the EU Institute for Security Studies 100, avenue de Suffren F-75015 Paris phone: +33 (0)1 56 89 19 30 fax: +33 (0)1 56 89 19 31 e-mail: [email protected] edited by Luis Peral & Vijay Sakhuja www.iss.europa.eu Chaillot Papers 128 Feb 12 Iran: a revolutionary republic in transition Farideh Farhi, Azadeh Kian, Rouzbeh Parsi, Evaleila Pesaran, Paola Rivetti; edited by Rouzbeh Parsi 127 Dec 11 The EU-US security and justice agenda in action Elaine Fahey, Eva Gross, Daniel Hamilton, Gilles de Kerchove, Xymena Kurowska, Maria Grazia Porcedda, Mark Rhinard, Thorsten Wetzling, Sarah Wolff; edited by Patryk Pawlak 126 Jun 11 The Western Balkans and the EU: ‘the hour of Europe’ In January 2002 the Institute for Security Studies (EUISS) became an autonomous Paris-based Morton Abramovitz, Florian Bieber, Dejan Jovic, Robert Manchin, Alina Mungiu-Pippidi, agency of the European Union. Following an EU Council Joint Action of 20 July 2001, modified Sašo Ordanovski, Momčilo Radulović, Denisa Sarajlić-Maglić, Igor Štiks, Veton Surroi, by the Joint Action of 21 December 2006, it is now an integral part of the new structures that Jovan Teokarevic; edited by Jacques Rupnik will support the further development of the CFSP/CSDP. The Institute’s core mission is to provide 125 Apr 11 The G-20: A Pathway to effective multilateralism? analyses and recommendations that can be of use and relevance to the formulation of the European Juha Jokela security and defence policy. In carrying out that mission, it also acts as an interface between 124 Dec 10 European Involvement in the Arab-Israeli Conflict European experts and decision-makers at all levels. Muriel Asseburg, Michael Bauer, Agnès Bertrand-Sanz, Esra Bulut Aymat, Jeroen Gunning, Christian-Peter Hanelt, Rosemary Hollis, Daniel Moeckli, Michelle Pace, Nathalie Tocci; edited by Esra Bulut Aymat 123 Nov 10 L’UE et l’Afrique : les défis de la cohérence Damien Helly 122 Oct 10 Violence politique et paix dans le monde arabe Abdallah Saaf 121 Sep 10 China’s foreign policy debates Zhu Liqun 120 Apr 10 Nuclear weapons after The 2010 NPT review conference Ian Anthony, Camille Grand, Łukasz Kulesa, Christian Mölling, Mark Smith; edited by Jean Pascal Zanders 119 Nov 09 Back from the cold? The EU and Belarus in 2009 Margarita M. Balmaceda, Sabine Fischer, Grzegorz Gromadzki, Andrei Liakhovich, Astrid Sahm, Vitali Silitski and Leonid Zlotnikov; edited by Sabine Fischer Books 2012 Global Trends 2030: Citizens in an Interconnected and Polycentric World 2012 Listening to unfamiliar voices – The Arab democratic wave Álvaro de Vasconcelos; with a preface by Pierre Vimont 2011 Global Governance – Building on the civil society agenda The European Union Institute for Security Studies . Paris Françoise Bouchet-Saulnier, Radha Kumar, Raffaelle Marchetti, Luis Peral, Catherine de Wenden, Zhu Liqun, edited by Álvaro de Vasconcelos © EU Institute for Security Studies 2012. All rights reserved. No part of this publication may be reproduced, 2011 The Agenda for the EU-US strategic partnership stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopy- Bassma Kodmani, F. Stephen Larrabee, Patricia Lewis, Patryk Pawlak, Maria João Rodrigues; ing, recording or otherwise without the prior permission of the EU Institute for Security Studies. edited by Álvaro de Vasconcelos Published by the EU Institute for Security Studies and printed in Condé-sur-Noireau (France) by Corlet Im- primeur, Graphic design by Metropolis (Lisbon) and Hanno Ranck. All Occasional Papers can be accessed via the institute’s website: www.iss.europa.eu The EU-India partnership: time to go strategic? Edited by Luis Peral and Vijay Sakhuja Institute for Security Studies European Union 100, avenue de Suffren 75015 Paris tel.: +33 (0)1 56 89 19 30 fax: +33 (0)1 56 89 19 31 e-mail: [email protected] ISBN 978-92-9198-208-0 www.iss.europa.eu QN-31-12-952-EN-C doi:10.2815/29869 Contents Foreword 7 Introduction: setting the EU-India partnership in motion 9 Luis Peral Common ground as a basis for common action: obstacles remain 10 Proposals for enhancing cooperation at the bilateral and multilateral level 12 Where to start? 20 Part I - Deepening economic cooperation and expanding cooperation on security issues The EU, India and non-traditional security: convergences and challenges 25 Jean-Luc Racine Introduction 25 Non-traditional security: an uncertain concept, a growing relevance 25 The EU-India dialogue and cooperation on non-traditional security 29 Enhancing cooperation in critical areas: the context and the scope 32 Conclusion 38 India-EU economic ties: strengthening the core of the Strategic Partnership 39 Gulshan Sachdeva Background 39 Trade trends 41 Technology transfer 48 Moving towards an India-EU FTA 49 Impact of the ongoing eurozone crisis 51 Conclusion 53 Part II - Proposals for enhancing economic and energy cooperation EU-India Bilateral Trade and Investment Agreement: opportunities and challenges 57 Debashis Chakraborty and Animesh Kumar Introduction 57 The EU and India: RTAs and trade patterns 59 Growing merchandise trade integration between the EU and India 62 EU-India association for trade in services 68 Investment collaborations between the EU and India 70 Areas of concern and the future 71 EU-India energy cooperation: promoting renewable sources and widening commitments 75 Dinoj Kumar Upadhyay Introduction 75 Catalysts for the promotion of renewable energy in India 76 Opportunities for India-EU renewable energy cooperation 79 Major challenges to widening energy cooperation 83 Concluding remarks 85 The potential for triangular cooperation between Europe, India and Africa 87 Jean-Joseph Boillot Introduction 87 The role of the population factor in the future relationship between Europe, India and Africa 87 Maximising the economic dividend 90 Sustainability 92 Natural resources 95 For a pooling of scientific resources 95 New business models and ‘frugal innovations’ 97 Conclusion: 11 suggestions to stimulate EU-India-Africa dialogue and cooperation 98 The scope for economic cooperation within the G-20 101 Gareth Price Introduction 101 India’s priorities 102 The G-20, Europe and India 103 Areas for engagement? 105 Part III – Exploring new forms of traditional and non-traditional security cooperation EU-India cooperation on counter-terrorism 111 Gauri Khandekar Introduction 111 Counter-terrorism in the EU 111 The institutional architecture of counter-terrorism in the EU 114 The EU as an international actor 118 EU-India cooperation 120 Concluding remarks 123 Partners for peace? Possibilities for EU-India cooperation in promoting security sector reform 125 Beata Górka-Winter Introduction 125 Modern approaches to SSR 126 The EU’s record as SSR promoter 127 India – responsible stakeholder 131 Recommendations for EU-India cooperation 133 India-EU cooperation on Afghanistan: context, constraints and prospects 135 Arpita Basu Roy The EU in Afghanistan 136 India in Afghanistan 138 The present Afghan context 142 Cooperation on the ground 144 Conclusion 145 Interlocking challenges: EU-India convergence on climate change 147 Uttam Kumar Sinha Interlocking challenges 147 EU-India climate convergence 148 Sharing knowledge and experience 152 New warming challenges: the Arctic and Tibet 154 Conclusion: capping emissions 158 Part IV – Case study: the Indian Ocean – another missed opportunity? Piracy in the Indian Ocean: an area where the interests of the European Union and India converge? 163 Tanguy Struye de Swielande Sea piracy 163 Possible cooperation between the EU and India? 168 Conclusion 171 India-EU cooperation in the Indian Ocean: strategic thinking, policy framework and challenges ahead 173 Vijay Sakhuja Mapping the Indian Ocean 173 The Indian Ocean in Indian and EU strategic thinking 175 Conclusion 183 ANNEXES 185 About the authors 185 Abbreviations 189 Foreword The present volume is a direct outcome of a 4-year process of close cooperation and friend- ship between the Indian Council of World Affairs (ICWA), a think tank of the Indian Min- istry of External Affairs, and the European Union Institute for Security Studies (EUISS), the sister institution at the EU level.1 In 2008, both institutions jointly launched the annual India-EU Forum on Effective Multilateralism, which has since then been organised alter- nately in Delhi and Brussels.