The European Union-Bhutan cooperation started with a development project in 1982 focusing on renewable natural resources. In 1985, diplomatic relations between the Royal Government of Bhutan and EU were established. This relationship was further cemented in 2004, when the EU and Bhutan held their first biennial consultation. Now these consultations have been upgraded to annual consultations which serve as a platform to carry out a structured dialogue on a number of areas such as political and economic developments, trade relations good governance and human rights, climate change and Development Cooperation. The last EU-Bhutan Annual Consultations were held in Thimphu on 5 May 2023.

EU relations with Bhutan are grounded on a longstanding and robust friendship. We work together to safeguard women and children's rights, promote gender equality, good governance and democratic values, combating climate change, reducing poverty and fostering cooperation with civil society organisations. The EU considers Bhutan to be a  ''development success story'', with decreasing poverty, peaceful democratisation, responsible stewardship of culture and environment, resulting in improvements in human development indicators. The EU is Bhutan’s third biggest donor after India and Japan.

The EU Ambassador and Head of Delegation of the EU to India, based in New Delhi is concurrently accredited to Bhutan. Bhutan has an Embassy in Brussels, accredited to the EU and to several EU Member States. Regular visits of the EU Ambassador to Bhutan, often jointly with Ambassadors of the EU Member States, provide opportunities for in-depth discussions to further strengthen the EU-Bhutan partnership. The last such EU Ambassadors visit to Bhutan took place from 25 to 28 April 2023

In 2015,  the Prime Minister of Bhutan, Mr. Tshering Tobgay, was the first ever Bhutanese Head of Government to visit Brussels. In June 2019, the newly elected Prime Minister Dr. Lotay Tshering also visited Brussels at the invitation of the President of the then European Commission, Mr. Jean-Claude Juncker, the dignitaries also participated at European Development Days (EDDs) in 2015 and 2019 respectively. Prime Minister Dr.Lotay Tshering also visited Brussels from 20 to 22 March 2023 where he met HRVP Borrell and other interlocutors.

Robust EU-Bhutan relations are also reflected in Parliamentary ties. In October 2017, a Parliamentary delegation led by the Bhutanese Speaker of the National Assembly visited Brussels followed by a visit of the European Parliament Delegation  to Thimphu in May 2019, a similar European Parliamentary visit to Thimphu also took place from 19-21 September 2022,  both led by the chair of the European Parliament Delegation for South Asia. Through an EU Global Project to strengthen the capacity of Parliaments called 'Parliaments in Partnership', the Bhutanese National Assembly and the National Council of Bhutan have developed links with the EU Member State Parliaments.  Through the EU’s project   “Promoting Good Governance - Support to Civil Society and Bhutanese Parliament engagement with Civil Society Organisations, the first ever ‘Strategy for Parliament Collaboration and Civil Society Organisations was launched on 4 May 2023. The document will be key in in guiding the partnership between the Legislatures and the CSO sector in Bhutan.

The Kingdom of Bhutan is scheduled to graduate from the Least Developed Country to Middle Income Country status on 13 December 2023. The EU is committed to continue its support to Bhutan during the transition and beyond.   

The European Investment Bank (EIB) and RGoB signed a Country Framework Agreement in November 2020 which was ratified by the Parliament of Bhutan in March 2021. This Framework Agreement enables the EIB to start supporting investment projects in Bhutan. The EU  is advocating  the EIB’s development branch, EIB Global, to provide long-term financing, advisory support and to blend EU grants to support global climate action, climate resilience,  energy efficiency, and support economic recovery of the country through supporting access to finance for MSMEs/SMES which have been vulnerable due to the impact of Covid thus contribute to long-term sustainability, resilience and competitiveness of the Bhutanese economy, notably after graduation from LDC status.

Origins of the Strategic Relation

The 1994 EU-India Cooperation Agreement provides the legal framework for EU-India relations and boosted political, economic, and sectoral cooperation. EU-India relations have evolved significantly since the commencement of annual summits in the year 2000. In 2004, the official declaration of the EU-India Strategic Partnership took the relationship a step further.

There have also been regular dialogues on regional and global issues of shared interests. The EU and India have regular foreign policy and security consultations and pursue cooperation on security issues such as counter-terrorism, cyber-security, counter-piracy/maritime security, non-proliferation, and disarmament. There are close contacts in multilateral forums and interactions during regional or international events and a shared commitment to enhance cooperation on common priorities further, including on human rights issues.

India and the EU are two of the world's largest economies having shared synergies and offering significant trade and investment opportunities. The EU is India's largest trading partner and India is the EU’s 9^th trading partner in terms of bilateral trade in goods.  

In 2023, the total value of EU-India trade in goods stood at €113.3 billion.  The EU is the main export destination for Indian goods. India exported to the EU goods worth €64.9 billion, while it imported from the EU goods worth €48.4 billion, thus enjoying a trade in goods surplus of €16.5 billion. The main export items from the EU to India are: machinery and mechanical appliances, aircraft, spacecraft and parts, electrical machinery and equipment. The main import items from India to the EU are: machinery, transport equipment, chemicals and related products.

Bilateral trade in services has seen a steady increase reaching  €50.7 billion in 2022. The EU exported services worth €23.9 billion, while it imported €26.8 billion in 2022. Thus, trade in services is relatively balanced, with India enjoying a surplus of €2.9 billion. Telecommunications, computer and information services along with transport services account for more than 65% of the EU's services exports to India and for around 45% of the EU’s services imports from India.

The EU is also a leading investor in India accounting for 17% (€8.4 billion) of the total FDI inflow and for more than 21% (€108.3 billion) of the total FDI stock in 2022. Close to 4,500 EU companies in India employ 6.7 million people (directly and indirectly).

India's rapid economic growth over the last decade has helped the country become the fifth largest economy in the world. The country's more than 1.4 billion population, including a thriving middle class, makes it an attractive destination for investments. On the other hand, the EU is the world's second largest economy and biggest single market. It has a population of close to 450 million with high purchasing power inhabitants.

Fostering an Important Economic Relationship

A key EU objective in its trade relations with India is to work towards a sound, transparent, open, non-discriminatory and predictable regulatory and business environment for EU companies trading with or investing in India, including the protection of their investments and intellectual property. This will contribute to unlocking the untapped potential of two-way trade and investment between the EU and India. Both India and the EU have also a common interest in preserving and strengthening the rules-based multilateral trading system by cooperating more closely in addressing the challenges facing the World Trade Organisation (WTO). Both parties are committed to free and fair trade for achieving sustainable development.

On 17 June 2022, the European Union and India relaunched their negotiations of a Free Trade Agreement (FTA), and initiated separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs). The FTA negotiations aim to remove tariff and non-tariff barriers and help firms – especially smaller ones – from both sides to export more; open up services/investment and public procurement markets and pursue commitments on trade and sustainable development. The investment protection negotiations aim to provide investors from both sides with a predictable and secure investment environment.

The future GIs agreement, once concluded, will provide for high level of protection of GIs through simplified procedures and should offer new trade avenues and business prospects including for SMEs manufacturing special quality and niche products.

In 2023 EU and India set up a Trade and Technology Council (TTC). The TTC will deepen strategic engagement and cooperation between both partners. The TTC has three working groups focusing on: strategic technologies, digital governance and digital connectivity; green & clean energy technologies and trade, investment and resilient value chains.

Cooperation on Research and Innovation with India:

• Cooperation on research and innovation with India takes place through the EU’s research and innovation framework Programme Horizon Europe (2021-2027), through call for proposals that are open to participation for non-EU countries.
• Cooperation on research and innovation is a cross-cutting and integral part of the EU-India Strategic Partnership as reflected in the Roadmap 2025, which includes around 20 actions on research and innovation.
• Europe’s Global Approach to research and innovation foresees stepping up cooperation with India to address together global challenges and support India’s sustainable modernisation process.
• The Trade and Technology Council (TTC) with India launched in 2023 is the latest and strongest demonstration of our political will to step up our engagement with India. The TTC consists of three Working Groups. Working Group 2 relating to Green and Clean Energy with a focus on research and innovation cooperation, standards and investments, aims at facilitating trade in these technologies. DG Research and Innovation co-chairs Working Group 2 together with the Principal Scientific Advisor Office of India.

EU-India partnership roadmap:

• The EU-India cooperation on research and innovation is governed by the Agreement for Scientific and Technological Cooperation signed in 2001, renewed for a further 5 years on 17 May 2020. Oversight is managed by a Joint Steering Committee co-chaired by the Director General of DG Research and Innovation, European Commission, and the Secretary of the Department of Science and Technology, Government of India.
• The EU-India Strategic Partnership: A Roadmap to 2025 adopted at the EU-India Summit on 15 July 2020 identified actions on research and innovation to facilitate the implementation of ongoing sectoral dialogues and to strengthen research and innovation cooperation notably on health research, digital technologies, green technologies and polar sciences. It also puts focus on mobility of scientists and strengthening the innovation dimension of the partnership by connecting start-ups.
• The EU-India Connectivity Partnership adopted on 8 May 2021, encourages both India and the EU to increase the two-way mobility of students and researchers under the People-to-People building block of the Connectivity Strategy with India.
• The Commission has concluded Implementing Arrangements with the Indian Science and Engineering Research Board (SERB) and with the Indian Council on Social Sciences Research (ICSSR) facilitating short-term mobility to be hosted by European Research Council grantees.

Areas of mutual interest:

In line with the Global Approach, cooperation on healthcare, including resilience to health crises, just greening of the economy and striving for a human-centric digitalisation will be priority areas for research and innovation cooperation with India. Cooperation to underpin the EU-India Connectivity Partnership, with a focus on mobility of researchers and innovators, and the Indo-Pacific strategy, by actions on the blue economy such as marine litter, will also be considered.

During the EU-India Leaders’ Meeting on 8 May 2021, both sides committed to step-up cooperation in research and innovation on the green transition, digital agenda and global health challenges.

At the first TTC Ministerial meeting in Brussels on 16 May 2023, it was agreed to start the work on the following actions:

1. waste water management, including plastic litter and waste to hydrogen
2. recycling of batteries for e-vehicles
3. interoperability of charging infrastructure for e-vehicle; and
4. standards (both cross-cutting and thematic)

Funding opportunities:

• Most topics in Horizon Europe are open for cooperation with India and certain topics target or encourage the participation of Indian entities. However, Indian participants are not automatically eligible for funding* by Horizon Europe and have to bring their own funding to the projects.
• For details about the co-funding provided by the Government of India, see the Guide on the Complementary Funding mechanism
• Indian researchers may of course also participate in Horizon Europe with other funding. *In exceptional cases, the Commission or the relevant funding body may consider that the participation of a legal entity is essential for implementing the action (Article 23.2(b) of the Horizon Europe Regulation)
• In addition, Indian entities are eligible for EU funding through the European Research Council and Marie Skłodowska Curie Actions.

Agreements and arrangements:

• EU-India Agreement on scientific and technological cooperation concluded in 2001, renewed in 2010, 2016 and 2020
• Cooperation agreement between the European Atomic Energy Community and the Government of India in the field of fusion energy  research signed in 2010.
• Implementing Arrangement between the European Commission and the Indian Science and Engineering Research Board (SERB)enabling Indian researchers from STEM field to be hosted by ERC grantees in Europe – signed in 2017
• Implementing Arrangement between the European Commission and the Indian Council of Social Science Research (ICSSR) enabling Indian researchers from Social Sciences and Humanities field to be hosted by ERC grantees in Europe – signed in October 2020
• European Atomic Energy Community (Euratom) and the Government of India Agreement  for research and development cooperation in the peaceful uses of nuclear energy - signed in July 2020
• India is a member of the ITER project

Erasmus+ and India

Jean Monnet

There is great interest in India for Jean Monnet projects, which promote understanding of European integration and provide a window on to the European Union as a project.

Three new Jean Monnet projects were selected during the 2023 call. One is the Jean Monnet Module “EU-TRIPOD - Promoting European Union approach on Trustworthy Artificial Intelligence and Innovative Product Development Techniques for Digital Green Transformation” delivered at Vellore Institute of Technology. The module aims to innovative pedagogies and e-learning contents to promote EU values on Trustworthy Artificial Intelligence and knowledge generation in digital technologies and human-centric product development suitable for Manufacturing and Automotive sector.

The second module is on EU Migration – Migration issues in the European Union aiming to develop a broader understanding of migration issues in the EU from economic, socio-political and security aspects. This module runs at Jawaharlal Nehru University.

The last module is titled - 'Democracy, Multiculturalism and Challenges in the European Union' (DMC) is woven around the idea of democracy, cultural diversity and the contemporary challenges that the EU is facing while managing multiculturalism. The module uses - cases and studies that focus primarily on social, political and cultural issues, challenges and changes in the EU, also run at the Jawaharlal Nehru University.

Other recently selected examples include the Jean Monnet Chair on EU Climate Justice Law, Governance, Management and Policy at the Symbiosis International University and the module delivered at Jawaharlal Nehru University’s Centre for European Studies entitled Culture, Society, Institutions and Change in the EU.

Erasmus Mundus Joint Masters.

Since the opening of the Erasmus + programme to third countries in 2004, the number of scholarships granted to Indian students has exceeded 6,000, covering short and longer term scholarships, since 2007. Out of those 2500+ have been awarded for Erasmus Mundus Joint Masters. The country is often in the top three when we look at scholarships per country.

EU International Partnerships

In the last few years, EU-India relations have evolved. As India has graduated from bilateral development assistance, reflecting its fast-paced economic growth, it has become a strategic development partner engaged with the EU on a wide range of issues. The EU and India have over the years successfully joined forces to foster inclusive economic development, promote good governance, protect the environment including improving energy efficiency, support civil society, and promote access to quality education and health.

With the new EU-India Strategy (2018) coming into place, strong emphasis is made on the importance of common responses to global and regional challenges which can broaden the EU-India cooperation. The strategy has also confirmed the relevance of the initiatives and sectors in which the EU INTPA are undertaken, namely:

• Green Deal- new growth strategy towards fair and prosperous society with a modern resource efficient economy.
• Governance, Peace and Security towards sustainable development.

The EU's International Partnerships in India, currently focuses on supporting India's transition to an upper middle-income status by addressing some of its key development priorities, such as sustainable and inclusive growth, job creation, and building sustainable infrastructure and human capital.

The EU has been adapting its tools to fit such purposes. In particular, its blended finance facilities provide a support mechanism to deliver investments in India-blending grants with loans to de-risk and/or maximise investments and build capacities- leveraging public funds to meet critical development needs.

EU development assistance to India, which amounted to more than €940 million during the 2005-2017, was utilised to deliver sustainable growth and address global challenges. The current portfolio of development cooperation projects in India amounts to more than €100 million in commitments. Most of the work focuses on areas identified by the EU and India as strategic, such as the greening of the economy, renewable energy and energy security, sustainable urbanisation, and disaster resilience. The EU adopts a coordinated approach in all its external actions to further strengthen existing partnerships with India such as on clean energy and climate; water; smart and sustainable urbanisation, and environment. It also works closely with Civil Society Organisations within the framework of the jointly identified areas to address social issues including gender balance, socio-economic inclusion, transparency, accountability, and democratic values.

Humanitarian aid

ECHO in India

Through its humanitarian aid department, present in India since 1995, the EU has responded to all major emergencies including Tsunami in the Indian Ocean in 2004, Kashmir earthquake in 2005, Bihar floods in 2007, cyclone Aila in 2009, Kerala floods in 2018, and floods in Assam and Bihar in 2019.

Since it first began operations, the EU has contributed more than €130 million to address the urgent humanitarian needs of people in India. Funds are allocated strictly on the basis of the humanitarian principles of independence, impartiality, humanity and neutrality to ensure access to those in need.

To minimise disaster risks, an important area of EU's humanitarian work in India is preparing communities. The EU implemented various disaster preparedness programs in 12 disaster-prone states between 2001-2013. Through initiatives such as early warning systems and adaptation of physical infrastructure, the programs have helped mitigate the impact of natural disasters, including floods, cyclones, earthquakes and other hazards among vulnerable communities. Its total contribution to this end exceeds €8 million.

Over the past decade, disaster preparedness has also been mainstreamed into EU-funded humanitarian response projects, ensuring shelters, improved sanitation, and water pumps built-in flood prone areas designed to withstand future inundations.

Partnership Instrument (PI) is the EU's instrument specifically designed to support the Union's working with strategic partners worldwide. It does so by offering policy support to respond to global challenges, projecting the international dimension of Europe 2020, enhancing discussions on market access and boosting trade, investment and business opportunities, and promoting public diplomacy and academic cooperation.

This instrument facilitates the EU's cooperation with strategic partners worldwide to jointly advance on mutual strategic interests and tackle global challenges. Additionally, it funds activities to forge ahead the EU agenda with partner countries, translating political commitments into concrete measures. PI enables the EU and its strategic partners to jointly shape the global change and to promote joint core values.

PI offers a different approach to the established models of development cooperation by promoting policy cooperation with strategic partners of the EU allowing the establishment of a wider political dialogue with such partners. It also supports the EU's relations with countries that are no longer eligible for bilateral development aid. PI supports project activities in India in the areas of clean energy and climate partnership, water partnership, resource efficiency, smart and sustainable urbanisation, aviation, digital cooperation, biodiversity, migration and mobility, competition cooperation, business support, public diplomacy, engagement with the civil society, think tank cooperation, business and human rights, women's economic empowerment, security, implementation of the Paris Agreement, and others.