The ninth European Union-India Summit held in Marseille, France on 29 September 2008 has been a success in terms of hardening the relations between India and the EU. In recent years, the relationship between the two sides has intensified significantly. Since the first EU-India Summit in year 2000, the volume of trade between the two partners rose substantially from Euros 25.6 billion to Euros 55.6 billion (in 2007), making India one of the Top Nine trading partners of the 27-nation bloc.

At the summit the EU side was represented by President Nicolas Sarkozy, in his capacity as President of the European Council, Jose Manuel Barroso, President of the European Commission, Dr. Javier Solana, High Representative for the EU’s Common Foreign and Security Policy, Mr. Bernard Kouchner, French Foreign Minister, Mme Anne Marie Idrac, French Secretary of State for external trade and Mr. Peter Mandelson, European Commissioner for Trade representing the bloc.

Prime Minister Dr. Manmohan Singh, Kamal Nath, Minister for Commerce and Industry and M.K. Narayanan, National Security Adviser, represented India.

Outcome

The summit decided to continue with the ongoing ‘Joint Action Plan’ on cooperation in peace and security issues. The JAP has already provided an agreed measure of progress, and a mechanism for coordination to spur stronger cooperation. The JAP adopted in 2005 to implement the strategic partnership launched in 2004 has significantly reinforced bilateral relations. The objectives included deepening of political dialogue, consolidating economic, scientific and technological cooperation, boosting trade and investment and promoting contact between peoples.

In their joint press conference President Sarkozy, European Commission President Manuel Barrosa and Indian Prime Minister Dr. Manmohan Singh announced that the world’s two largest trading partners would wrap up the ambitious Trade and Investment Agreement by 2009. The summit also resolved to double the EU-India trade turnover to 100 billion Euros in the next five years, to give a fresh impetus to the strategic partnership.

The agreement on civil aviation between India and the EU signed on 28 September was significant in boosting this trade target. A similar pact on maritime transport cooperation is to be inked between the two sides by the end of this year.

A Joint Press Communiqué issued at the end of the Summit recognised the importance of the trade agreement to fulfill the expectations of businesses on both sides and further strengthen the bilateral economic relationship. Towards this end, the communiqué said they would “endeavour to achieve a balanced and ambitious outcome”. Welcoming the signing of a landmark horizontal civil aviation agreement, allowing more airlines to operate flights between India and EU countries, the communiqué said a similar maritime transport agreement was in the cards.

President Sarkozy said the trade agreement would become the new pillar to Indo-EU strategic partnership.

Nuclear Cooperation

The two sides also agreed to cooperate in “civil nuclear research and development in a manner consistent with their international obligations,” under the India-EU Joint Action Plan. It was also agreed to promote bilateral R&D in a range of areas to enhance exchanges and cooperation.

President Sarkozy announced his country’s intention to forge civil nuclear cooperation with India, which was sealed in an agreement he signed with the Indian PM in Paris. The prospects of cooperation between France and India in the civil nuclear field are ‘very promising’ considering the expertise of France and its tradition of cooperation with India and an atmosphere of trust.

India and France initialed the Framework Agreement for Civil Nuclear Cooperation in January but could not sign it pending a waiver from the 45-nation Nuclear Suppliers Group (NSG). France, the world’s leading country in nuclear power, produces 80 percent of electricity from atomic energy and has offered its latest EPR technology to India under the agreement.

The Indo-French social security, signed during the summit, also became an important step for Indian professionals on short duration stays to take back their social security contributions when they return to the country.

India as Vital Partner

The effervescence of pro-India sentiments was visible at the upbeat note struck by Benita Ferrero-Waldner, the European Commissioner for External Relations and the Neighbourhood Policy, who described India as a “vital partner”.

“The importance we attach to the relationship is reflected in the establishment, in 2004, of the EU-India Strategic Partnership. For those less familiar with EU agreements with third countries, Strategic Partnerships are a kind of platinum version - the most comprehensive we can establish,” Ferrero-Waldner said.

“We are convinced that it will further boost trade between our two economies. We are also setting up new mechanisms for discussing economic issues, with special focus on macroeconomics and financial services. The challenges identified at that time persist today, but it still necessary to update the strategy with a view to tackling new global issues”, she said.

Science & Technology

In the bilateral relations, scientific and technological research has emerged as an important vector of cooperation, generating significant mutual benefits. Together with China, Russia and the United States, India is one of the four non-EU countries, which are most actively involved in the Seventh Research Framework Programme of the EU. The European Business and Technology Centre set up in New Delhi is expected to play a big role in stimulating this trade and research cooperation.

University exchanges, too, promote mutual understanding between peoples. The Euros 33 million budget earmarked for India has allowed the Erasmus Mundus Programme to provide new opportunities, enabling more than one thousand Indian graduates to study in Europe between 2004 and 2007. The new Erasmus Mundus II programme is set extend this cooperation further.

To address some of the problems faced by India, the European Union will allocate Euros 470 million between 2008 and 2013 to reinforce the work done by the Indian authorities to reduce poverty and achieve the Millennium Development Goals. With a budget of Euros 180 million to be allocated by 2010, basic health and education will become priority areas.

Blue Card

India used the summit to articulate its demand for speedier liberalisation of visa regime in the EU to allow free flow of businessmen and skilled professionals from India to the continent. The EU is estimated to require 20 million skilled migrant workers during the next 20 years to plug labour gaps in the developed world.

Responding to India’s demands, Manuel Barroso, President, European Commission said “The EU is aware of the difficulties faced by skilled professionals from India and other non-EU countries who come to the continent” and he expressed hope that the ‘Blue Card’ initiative on the lines of ‘Green Card’ system of the US would go a long way in mitigating the woes in this regard.

The Blue card is designed to provide a ‘one-stop shop’ for non- European Union nationals with skilled work experience to take employment in a EU member state. The scheme would help the EU compete with other countries, which are attracting many more skilled immigrants. With the Blue Card, the EU hopes to attract the inflow of skilled workers to the level of US, which has a much higher percentage of highly skilled foreign immigrants. Unlike the US Green Card, the Blue Card holder will not get permanent resident status in the member states.

Nevertheless, the ‘Blue Card’ will ensure congenial working conditions for professionals in terms of having their family join them; public housing and long-term residency status etc. The Blue Card plan is expected to increases the influx of information technology specialists, engineers, doctors, nurses and other highly- qualified workers from Asia, Africa and Latin America.

The EU has concerns over illegal migrants flocking to the region and is impressed by India’s willingness to take them back. The ambitious target to double the India-EU trade turnover to Euros 100 billion by 2013 is imperative to reform the visa regime to enable businessmen, professionals and tourists to visit the continent.