The European Union (EU) and India concluded a ‘Comprehensive Connectivity Partnership’ in order to support resilient and sustainable connectivity in India as well as other countries throughout Africa, Central Asia, and the Indo-Pacific regions. The new comprehensive partnership attempts to improve the regional trade and influence as announced on May 8^th, 2021.

The recent EU-India Partnership is the second such partnership following the cooperation in sectors such as digital, energy, transport, and people-to-people exchanges signed in Japan in September 2019. The parties agreed to support the transition to a more green and digital economy, adherence and development of international standards as well as sharing norms and values in social, environmental, and economic areas. This is especially important in light of the growing Indian population and an increasing digitalization of the Indian economy which is currently taking place Resources will be directed towards the needs of the next generation, in regards to both sustainable and high-quality infrastructure.

Particular priority is given to the environmental sector as the implementation of the EU-India Clean Energy and Climate Partnership is currently in progress. Further support will be given to both public and private activities in clean energy projects including both solar and wind. Decarbonization in the transport sector is also on the agenda of policymakers. Activities in the digital sector will be directed to improve connectivity and 5G networks. Finally, the parties plan to extend university exchange programs and scientific cooperation in the people-to-people sector.

The EU is expected to engage a number of its Member States and Financial Institutions under this joint framework. The new European Investment bank has announced financing of EUR 300 million for the subways in Pune and Kanpur, and a EUR 25 million equity investment in the NEEV II fund, which reinforces global climate action, together with the State Bank of India.

A number of opportunities for EU businesses to access the Indian market are presented in light of the most recently announced EU-India Comprehensive Connectivity Partnership. If you would like to know more about accessing the market in India, feel free to contact us at info@phcadvisory.com for additional information.