India and EU Collaborate to Develop Advanced Technologies and Secure Critical Raw Material Supply Chains
India and the European Union (EU) have agreed to collaborate on developing cutting-edge technologies and securing critical raw material supply chains to strengthen economic ties. This decision was reached during discussions between India’s Commerce and Industry Minister, Piyush Goyal, and Maros Sefcovic, a senior EU representative. The collaboration aims to establish a meaningful trade agenda, negotiate a robust Free Trade Agreement (FTA), and address non-tariff barriers to facilitate mutual business benefits.
Minister Goyal outlined six broad principles to build a mutually beneficial partnership between India and the EU. These principles include enhancing trade and investment, fostering technological cooperation, ensuring supply chain resilience, promoting sustainability, facilitating mobility of professionals and students, and strengthening people-to-people connections. Both parties emphasized the importance of securing critical raw material supply chains, which are essential for various industries, including renewable energy, electric mobility, and high-tech manufacturing.
The EU has been proactive in addressing supply chain risks associated with critical raw materials. In March 2023, the European Commission introduced the Critical Raw Materials Act to secure a stable supply of these materials, vital for the green energy transition. India, recognizing similar challenges, has identified 30 critical raw materials to foster self-reliance and reduce dependency on imports. The convergence of interests provides a solid foundation for collaboration between India and the EU in this domain.
Both India and the EU are members of the Minerals Security Partnership (MSP), an initiative aimed at diversifying and securing global supply chains for critical minerals. This partnership underscores their shared commitment to building resilient supply chains and reducing reliance on dominant players in the sector. The establishment of the India-EU Trade and Technology Council (TTC) further signals a growing interest in geoeconomic cooperation, providing a platform to address challenges and explore opportunities in technology and trade.
The collaboration between India and the EU is expected to drive economic growth, support climate action, and build resilient supply chains crucial for the green transition. By leveraging each other’s strengths, both parties aim to develop competitive supply chains, invest in research and development of alternatives to critical raw materials, and cooperate on the re-use and recycling of existing materials. This strategic partnership is poised to play a pivotal role in diversifying supply chains and mitigating geopolitical risks associated with the monopolization of critical minerals by a limited number of countries.
