After World War II, the European Union (EU) adopted a model of “strategic comfort”, subcontracting core pillars of its security and economic strength to trusted partners.
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From Comfort to Crisis: For decades, Europe has enjoyed a form of stability built largely on convenience rather than careful foresight. After World War II, the European Union (EU) adopted a model of “strategic comfort”, subcontracting core pillars of its security and economic strength to trusted partners. Based on the “strategic comfort”, the defence was assigned to the United States (U.S) through NATO, but the dependence on energy lay on Russia’s vast reserves. Significantly, manufacturing is the backbone of economic competitiveness, migrated to China, where scale and cost advantages seemed irresistible. For over 70 years, this strategy worked magnificently because EU economies flourished, citizens enjoyed high living standards, and political stability remained largely constant. Yet, the world has changed, as the last half-decade has revealed that Europe’s dependence on other nations was a fragile foundation for strategic autonomy.
Ultimately, the Ukraine war exposed the weaponisation of energy, as Russia manipulated its gas supplies to influence European policy. The COVID-19 pandemic becomes the example of how supply chains could be messed up overnight in the EU, and manufacturers scrambled for essentials. Even the long-trusted NATO alliance exhibited cracks when political pressures from Washington highlighted the conditional nature of military solidarity. Because of the structural change in Europe, the comfort zone suddenly seemed fragile, if not illusory. Currently,the EU faces a stark realisation that strategic independence is not optional, and the cost of ignorance is too high. Europe does not need ideology or fustian; it needs substantial stability that can withstand crises, disruptions, and geopolitical distress.
India: Stability without Strings
India, with its strong democratic foundations, growing economy, and expanding manufacturing capabilities, is an outstanding strategic partner that could be suited to Europe’s recalibration. Unlike China, Russia, and the US, India does not pose strong arm geopolitical risk. Because its partnership is not tied to conditional military or political obligations. Firstly, manufacturing scale without geopolitical vulnerability, as Indian factories can produce pharmaceuticals, textiles, automobiles, and aircraft components at scale without the supply-chain risks associated with China. Secondly, Energy partnerships are free from coercive leverage because India is not a global energy superpower, but it offers an established conventional market for long-term energy collaboration. Thirdly, India’s political alignment without overreliance on a single superpower helps it to be a vibrant democracy with growing influence in the Indo-Pacific that aligns strategically.
“This is not charity; it is survival economics”
Europe understands that its future competitiveness depends on reliable partners who can deliver production, supply, and policy alignment. The European Commission recently confirmed that a landmark EU-India Free Trade Agreement (FTA) was signed on 27 January 2026, stating that the agreement represents far more than tariff reductions and seems to be a strategic instrument to reinforce Europe’s industrial and geopolitical autonomy.
The EU-India FTA: More Than Trade
Unlike archetypal trade agreements, the EU-India FTA was premeditated to reshape entire sectors and rebalance the economic gauges. Before the new FTA agreement, if a European product priced at €80, when it enters India, it incurs duties that push the cost of the product to €100. Under the new FTA, these duties will fall close to zero, keeping the price at €80. On contrary, Indian goods will become more inexpensive in Europe, boosting volumes, revenues, and profits. The implications for India are transformative in various sectors like textiles, leather, pharmaceuticals, petrochemicals, and automobile components, which could expand rapidly. FTAs constantly create winners and losers; entire industries are repriced, and new competitive hierarchies emerge. But for India, this deal becomes an opportunity to strengthen its economy, attract investment, and reinforce its position in global value chains.
Winners, Losers, and the Negative List
Yet, this opportunity carries complexity. Negative-listed sectors eliminated from duty reductions will define the ultimate winners and losers. Some of the Indian production industries may struggle to compete in Europe if essential criteria remain absent. On the contrary, sectors (Apparel, Textiles, Leather-Footwear, Jewellery-Gems, Liquors, Food Products, Sea Foods, dairy, Cereals and Poultry) that are fully integrated into the India-EU FTA will gain a decisive advantage, potentially by capturing substantial market shares and technological investments. Navigating this balance is critical because both sides must ensure that sensitive domestic sectors are shielded enough to maintain political support while leveraging the agreement to maximise economic growth and strategic benefit. Execution will determine whether the FTA is transformative or merely symbolic.
A Strategic Lifeline
Beyond economics, India-EU’s new FTA signals a broader geopolitical realignment that fulfils the impacts of Trump’s tariffs. Europe is pivoting eastward, not to China, not too distant allies, but towards India. This rotational move reflects a pragmatic calculation of India’s strategic reliability, democratic, and independent. It offers Europe what it lost: scale, stability, and alignment without past dependencies or coercive leverage. Today, FTAs act as more than trading instruments; they become a trump card for strategic autonomy.
For India, this is equally noteworthy because this agreement is not just about exports or market access. It is an affirmation of India’s rise as a dependable global partner, a critical strategic actor in Europe’s long-term economic and strategic calculus.
For Europe, signing a deal with India becomes a hedge against its crises, a buffer against its instability, and a pathway to recover its industrial strength. For India, this FTA helps to influence the global economy by strengthening its domestic sectors and fortifying its strategic partnerships. Hence, the “Mother of All Deals” could reshape India’s trade, development, economy, politics, and strategic power across the Indo-Pacific region over decades. Merely, it is not a trade agreement; it is a strategic lifeline and a pathway for Europe’s independence and India’s rise as a global partner.
Dr. G. Chandrasekaran
(The writer is an Assistant Professor, Centre for Southeast Asian Studies, Nagaland Central University)