India aims to ‘dramatically’ deepen ties with EU amid Iran war, global turmoil

India wants to “dramatically” deepen its partnership with the European Union, including by striking defense deals, as the Iran war and global crises push New Delhi closer to Brussels, the country’s foreign minister told POLITICO.

In January, the EU inked what’s been described as the “mother of all” trade deals with India during a bilateral summit where Ursula von der Leyen and Antonio Costa, the top two officials in the EU, were welcomed as official state guests during Republic Day celebrations.

As that deal snakes its way toward approval in the European Parliament, India sees potential for further upgrading EU-India ties, notably by inking a security of information deal that could pave the way for much closer cooperation on defense armament agreements, per Subrahmanyam Jaishankar.

“In my career, I have seen some of our relationships really change, dramatically change. And I am convinced that we are poised at that moment where Europe is concerned,” he said during a visit to Brussels where he attended a gathering of EU foreign ministers.

“We are aware of the strategic nature of what we’re doing … This is not just one more trade deal. It’s something much much bigger,” he added.

Jaishankar went on to cite potential deals for the EU to procure weapons from India’s armaments industry, including via the purchase of ammunition and drone and counter-drone technology, citing a deal with Airbus to construct in India as an example of deals to come.

Such deals should occur within “an enabling environment where Indian companies and European companies have the ability to work with each other without any regulatory or political restriction,” he said, adding that he was “bullish” about prospects for EU-India relations.

On trade, Jaishankar said he did not expect the Parliament to get in the way of the EU-India deal. “I think on India, frankly, there is a unity of purpose, and even in the European Parliament the overwhelming sentiment is very much, very much in favor.”

Before the EU-India deal was signed, New Delhi had hoped to be exempted from the EU’s Carbon Border Adjustment Mechanism, an exemption that was not granted. Jaishankar said that the two sides would “continue our discussions to see how any issues pertaining to that can be addressed.”

Global mediator

But there’s a dark cloud on the EU-India horizon: Russia.

New Delhi has maintained its relations with Moscow, including purchasing its energy exports despite U.S. and EU sanctions on Russian oil. Russian President Vladimir Putin met with Indian Prime Minister Narendra Modi in December of last year, amid other ongoing contacts.

The Indian minister — who cited the term “values-based realism” to describe India’s foreign policy outlook — said he expected to hear criticism from some EU counterparts about India-Russia ties during his stay in Brussels, but that this would be outweighed by desire for “mutual de-risking” in a time of turmoil.

“I would certainly assume that I will hear views … which will be based on the European Union’s experience of dealing with Russia,” he said. “I think our position has been frankly very balanced and very objective. If you look at how many world leaders from 2022 have been to both Moscow and Kyiv, there are not that many. And my prime minister [Modi] happens to be one of them.”

Jaishankar’s visit coincided with growing concerns about the impact of a U.S.-Israeli war against Iran — which the Indian foreign minister described as “deeply concerning.”

“We have really enormous stakes there,” he said, referring to Iran. India had “very early on expressed deep concern because … when you see instability, when you [see] conflict in a contiguous area, that has consequences for a lot of people, and if on top of it your trade and energy are impacted, it matters a lot.”

While U.S. President Donald Trump is pressing EU countries to help clear the Strait of Hormuz, India has avoided taking any sides. Jaishankar maintains regular contact with his Iranian counterpart, Abbas Araghchi, including a phone call late last week. Another conversation is expected to take place in coming days.

Asked what sort of message he was relaying to Tehran, Jaishankar cited “the need to de-escalate,” “concern at the widening of the conflict,” the “energy implications for us,” as well as concern for the roughly 10,000 Indians residing in Iran and millions living across the wider region.

“Our hope is that there is a decision made that heads toward an end to the conflict, certainly toward de-escalation, and then an end to the conflict,” he said, adding: “We only see a downside to this conflict.”

As for India’s relationship with the United States, Jaishankar — who met with his counterpart, Marco Rubio, on Feb. 3 — steered clear of critical comments on Washington. Asked if he welcomed Trump’s decision to lift sanctions on exports of Russian energy firms Lukoil and Rosneft, he sidestepped, saying: “If you want the global economy to grow, if you want to see stability, predictability in the markets, then let the markets be the focus.”

The U.S. and India are negotiating their own trade deal, which has stalled following a ruling by the U.S. Supreme Court against Trump’s tariff policy. Asked if the delay had to do with the U.S. campaign against Iran, he added: “Well, I want to be very clear: what’s happening in the Middle East has nothing to do with that.”