The culmination of the strategic partnership between the European Union (EU) and India has taken place in New Delhi, with the attendance of Ursula von der Leyen, President of the European Commission, and António Costa, President of the European Council, as guests of honour at India’s Republic Day parade on 26 January.
In 2004, during the fifth bilateral Summit, India and the EU signed a Strategic Partnership Agreement in which they recognised each other as strategic partners. This marked a parallel shift in mutual perceptions: on the EU side, the recognition that India would be a like-minded economic and political partner in a changing global landscape; on India’s side, the possibility that the EU would move beyond being solely an economic actor to also becoming a political one. Since then, the international context and the priorities of the relationship have evolved significantly.
In its early stages, the primary focus was economic, as reflected in the 2005 Joint Action Plan. That same year, negotiations began for a Free Trade Agreement (FTA). However, after 15 rounds of dialogue, talks were suspended in 2013. Difficulties in reaching consensus in sectors such as automotive, spirits, agriculture and intellectual property rights standards led to the postponement of the agreement. The conclusions of the FTA negotiations are expected to be announced during this visit, although details regarding conditions and tariffs remain to be finalised.
Multilateralism and international cooperation: who will save them?
India and the EU share objectives in a 21st century marked by accelerated change, in which access to resources and the weaponisation of the economy threaten their interests. In this new scenario, a broader trade agreement is needed, one with a strategic component that enables these two partners to diversify alliances, reduce dependence on the United States and China, and safeguard the security of their economic interests.
The diplomatic gesture of inviting a leader as guest of honour at Republic Day is a significant sign of recognition and reflects the priorities of India’s geopolitical vision. This tradition, in place since 1950, has gained greater prominence under the leadership of Narendra Modi, particularly in a global context characterised by hard power and the erosion of established norms. Diplomacy continues to be valued by both Brussels and New Delhi.
Mutual interest in the relationship is high. In economic terms, prospects are promising, although negotiations are extremely complex. By 2024–2025, the EU had consolidated its position as India’s third-largest trading partner. In this context, the question arises: what role does Spain play?
Spain and India: from strangers to a place on the European map
Spain and India were largely unfamiliar with each other when they established diplomatic relations in 1956. The first official visit was that of Foreign Minister Gregorio López Bravo, followed by that of Prince Juan Carlos de Borbón. At the time, Spain was living under a dictatorship, while India maintained its policy of non-alignment.
In 1972, within the framework of the General Agreement on Tariffs and Trade (GATT), both countries signed their first cooperation agreement: the Trade and Economic Cooperation Agreement. Following Spain’s democratic transition, Secretaries of State for Foreign Affairs exchanged visits between 1980 and 1981, followed by a visit by the King and Queen in 1982, during which a Cultural Cooperation Agreement was signed.
At that time, Prime Minister Indira Gandhi invited Spain to increase its investments in India. Her vision, rooted in the anti-imperialist ideals that characterised the independence movement, was shaped by her political activism alongside her father, Jawaharlal Nehru, in support of the Spanish Republic during the Civil War. Although she did not accompany Nehru on his visit to Barcelona in 1938, she did help raise funds from London in support of the Republican side and displaced Spaniards. From this ideological standpoint, Gandhi expressed her desire to strengthen ties “following the restoration of democracy”.
With Asia’s economic rise and the EU’s growing interest in the continent, Spain also began to look towards Asia. Although its knowledge of the region was more limited than that of other European partners, the European Commission’s New Asia Strategy (1994) inspired the Spanish government to frame its own. While initially focused on East Asia, India gradually emerged as a priority country.
India’s economic growth has been sustained, with rates between 6.5% and 7%. India is one of the world’s largest economies in terms of purchasing power parity and is expected to become the third-largest global economy by the end of this decade. It is also the most populous country in the world, with approximately 1.47 billion inhabitants, of whom 22.5% belong to the lower middle classes, 17% to the upper middle classes and 2.7% to the wealthiest strata—representing a market with enormous potential.
The strategic vision of leaders such as former Foreign Minister Josep Piqué drove the creation of Casa Asia in 2001 and the launch of the first Asia-Pacific Framework Plan (2000–2002). India gained importance in subsequent plans and is now considered a priority country, although there is still room for improvement. King Juan Carlos’s visit to India in 2012 reflected renewed interest in the country, always in alignment with the EU’s foreign policy framework.
The economic axis: a key factor in the partnership
Spain ranks sixth among EU trading partners in India and is the sixteenth-largest global investor, with foreign direct investment amounting to USD 3.94 billion. In the 1980s, bilateral trade barely reached USD 77 million; by 2023 it had risen to USD 8.25 billion, and in 2024 India became Spain’s 15th largest import supplier (seventh within the EU as a whole).
During Prime Minister Pedro Sánchez’s visit to India in November 2024, it was agreed to designate 2026 as the Spain–India Dual Year, marking the 70th anniversary of the establishment of diplomatic relations. The celebration is structured around three pillars: culture, tourism and artificial intelligence. An “International Agreement on cooperation and mutual assistance in customs matters” was also signed to facilitate legal trade and ensure logistical security, along with a fast-track investment mechanism to streamline operations for Spanish companies in India and vice versa.
Priority sectors for cooperation include infrastructure and transport. To this end, a “Memorandum of Understanding on cooperation in infrastructure and railway transport” was signed in October 2024, covering automotive, aerospace, technology and digitalisation, machinery and metallurgy, agri-food and defence.
This commitment was underscored during Sánchez’s visit to the state of Gujarat, where he and Modi inaugurated an Airbus plant in the capital, Vadodara, which is expected to produce 40 C-295 aircraft units together with its local partner TATA under the Make in India initiative. With the exception of 16 units assembled in Seville, the remainder will be manufactured under licence in Gujarat’s capital. The visit also included the Spain–India CEO Forum in Mumbai, attended by 150 Spanish and 100 Indian companies and organised by the Chamber of Commerce, ICEX and the Spanish Confederation of Business Organisations (CEOE), to explore opportunities for cooperation. Currently, more than 230 Spanish companies operate in India.
Another key sector is renewable energy. In 2024, Spain joined the International Solar Alliance (ISA), headquartered in New Delhi, opening investment opportunities in a market with significant expansion needs, where per capita electricity consumption has increased by 207% in just over 20 years and coal still accounts for 74% of electricity generation. Spain’s experience in solar, wind, hydroelectric and green hydrogen energy positions it well to contribute to this expansion. To this end, among other initiatives, a Memorandum of Understanding was signed in June 2025 to promote green hydrogen production.
In another area, Spain seeks to strengthen its visibility in India through a memorandum on cultural exchange, with tourism and the audiovisual sector playing a prominent role. In January, the Minister of Culture, Ernest Urtasun, inaugurated the New Delhi World Book Fair, where Spain was the guest country. The Spain Film Commission also participated in the International Film Festival of India 2025, proposing Spain as the festival’s focus country in 2026. India’s film market, led by Bollywood, exceeds USD 8 billion, while the digital market is valued at over USD 25 billion.
As for tourism, despite an annual increase of 3.8%, the number of Indian visitors remains modest: only 229,745 visited Spain in 2024. The expansion of the Cervantes Institute, which currently has a single centre in New Delhi—the one with the highest number of teaching hours per student worldwide, with 234,000 students—is emerging as a key tool to improve mutual understanding and project Spain’s innovative and technological image.
On 21 January, the Minister of Foreign Affairs, European Union and Cooperation, José Manuel Albares, inaugurated the Dual Year together with his counterpart, Subrahmanyam Jaishankar, taking the opportunity to sign Spain’s accession to the Indo-Pacific Oceans Initiative. Albares also met with the President of India, Droupadi Murmu. At a pivotal moment for both Europeans and Indians, it is essential for Spain to play a more prominent role by positioning itself as a relevant EU member. All the opportunities offered by closer ties with India must be seized.
