27 September 2025 Indian Express Editorial


What to Read in Indian Express Editorial( Topic and Syllabus wise)

Editorial 1: India–EU Strategic Agenda

Context:

In current unpredictable scenario, where US has imposed 50% tariffs on Indian exports, the European Union (EU) seeks to position itself as a reliable and stable partner for India. The EU recently released a strategic agenda for India–EU relations ahead of their upcoming leaders’ summit, outlining five major pillars: economy and trade, global connectivity, emerging technologies, security and defense, and people-to-people ties.

Economy and Trade:

  • The EU is India’s largest trading partner and the most significant foreign investor.
  • In 2023, bilateral trade in goods and services reached record levels, with EU investments in India crossing EUR 140 billion, directly employing over 3 million people.
  • Nearly 6,000 European companies operate in India, contributing substantially to job creation and technological infusion.
  • Both sides are seeking to finalize a Free Trade Agreement (FTA) by the end of 2025, which could reduce tariff and non-tariff barriers, open new investment flows, and boost bilateral trade.
  • Negotiations also cover an Investment Protection Agreement, cooperation on Geographical Indications, and a bilateral macroeconomic dialogue.
  • If successful, these frameworks would bring predictability and deepen economic interdependence.

Global Connectivity:

  • The EU’s Global Gateway Initiative is central to its strategy, with EUR 300 billion earmarked globally for digital, energy, and transport infrastructure.
  • This dovetails with India’s connectivity priorities, exemplified by the India–Middle East–Europe Economic Corridor (IMEC), which aims to revive historic Eurasian trade routes through maritime, rail, energy, and digital corridors.
  • Another flagship project is the EU–Africa–India Digital Corridor, featuring the 11,700 km Blue Raman submarine cable system via the Mediterranean and East Africa, designed to provide ultra-secure, high-speed connectivity.
  • Maritime initiatives like green shipping corridors also seek to reduce carbon-intensive trade routes, aligning connectivity with sustainability.

 Emerging Technologies:

  • India offers a large skilled workforce, a growing startup ecosystem, and expertise in frugal innovation, while the EU brings advanced research, regulatory frameworks, and industrial capacity.
  • To harness complementarities, the EU has proposed an EU–India Innovation Hub, connecting policymakers, industries, startups, and investors in key technology domains.
  • The focus is on artificial intelligence, particularly multilingual large language models, AI for public goods like healthcare, agriculture, and climate solutions, as well as digital public infrastructure.
  • The EU also envisages collaboration in nuclear safety, reactor technology, waste management, and peaceful nuclear applications. These measures aim at shared innovation and resilience in critical and emerging technologies.

Security and Defense:

  • Security cooperation has accelerated, especially after the Strategic Dialogue on Foreign and Security Policy launched in June 2025.
  • The EU and India are working towards a Security and Defense Partnership, which could include a Security of Information Agreementto facilitate classified data exchange and operational cooperation between the Indian Navy and the EU Naval Force in the Indo-Pacific.
  • The partnership also covers counterterrorism, anti-money laundering, drug trafficking, maritime security, and cyber resilience.
  • Capacity-building, intelligence sharing, and joint projects remain central to this agenda.
  • Additionally, the EU seeks to expand industrial collaboration through a proposed EU–India Defence Industry Forum,encouraging joint manufacturing, strengthening supply chains, and boosting India’s defence-industrial base.

 People-to-People Ties:

  • The EU hosts the largest community of Indians abroad—825,000 Indian citizens in 2023.
  • Indians receive the highest number of EU Blue Cardsand intra-corporate transfer permits, making skilled migration a cornerstone of cooperation.
  • With nearly a million Schengen visasissued to Indians in 2024, mobility has become easier.
  • Both sides aim to manage migration responsibly—balancing India’s developmental needs with Europe’s labor requirements—while tackling irregular flows.
  • Student and researcher exchanges are also expanding, with Europe seeking to attract top Indian talent, especially against the backdrop of American universities becoming less accessible due to restrictive US policies.

Way Forward:

The India–EU strategic agenda, built on five pillars, reflects a comprehensive effort to deepen ties beyond traditional trade and diplomacy. By combining Europe’s economic, technological, and regulatory strengths with India’s growing market, skilled workforce, and strategic location, the partnership offers mutual gains. For India, it presents an opportunity to diversify partnerships beyond the US and Russia, strengthening its multi-polar foreign policy and advancing its developmental priorities.

 

Editorial 2: India needs a plan

Context:

China has recently announced at the WTO that it will no longer seek “Special and Differential Treatment” (SDT). This development, while technical in nature, has far-reaching consequences for India’s trade strategy, domestic industries, and broader economic policy.

Excessive reliance on SDT provision:

  • Historically, SDT provisions at the WTO have allowed developing countries to benefit from preferential treatment, including longer timelines to implement trade commitments, exemptions from certain trade rules, and financial or technical assistance.
  • China has leveraged SDT status for decades, gradually integrating itself into the global economy while maintaining certain policy flexibilities to shield vulnerable domestic sectors.
  • By announcing it will no longer pursue SDT, China is signaling its confidence as a global economic power and implicitly questioning the continued reliance of other developing countries, like India, on such concessions.
  • For India, this presents both challenges and opportunities. On one hand, India must recognize that its long-standing dependence on SDT provisions, particularly in sectors such as agriculture, food processing, and small-scale manufacturing, may no longer provide the shield it has relied upon.
  • On the other hand, it offers an opportunity to proactively reassess trade policy, align domestic reforms with global standards, and negotiate strategically within the WTO to protect national interests.

Agricultural sector:

  • India’s agriculture sector is particularly exposed. Indian farmers and workers rely on SDT measures for protection against global competition, but phased reductions in trade barriers could threaten rural incomes, heighten food price volatility, and exacerbate malnutrition.
  • Data from the Food and Agriculture Organizationindicates that reductions in subsidies could disproportionately affect vulnerable populations, including smallholders and children.
  • Without careful planning, liberalization of trade in agriculture may result in economic insecurity and social instability.

Pharma and Digital services:

  • Beyond agriculture, other sectors including pharmaceuticals, e-commerce, and digital services also face exposure.
  • India’s current reliance on subsidies and regulatory safeguards must be re-examined.
  • For instance, reductions in tariffs or removal of trade protections could undermine domestic firms that depend on state support, while simultaneously exposing India to foreign competition.
  • In addition, disputes at the WTO, such as those involving sugar subsidies, illustrate India’s vulnerability if it lacks a strategic approach to global trade rules.

Multi-Pronged strategy for India:

  • First, India must modernize domestic regulatory frameworksto enhance competitiveness while ensuring social protections.
  • This includes strengthening institutions like the Open Network for Digital Commerce (ONDC), supporting MSMEs in digital trade, and investing in technology-driven productivity improvements.
  • Second, India must actively engage in WTO negotiations, seeking pragmatic compromises that balance market access obligations with national security and development priorities.
  • Another critical recommendation is the adoption of a phased, calibrated approach to subsidy reductions.
  • This entails gradually reducing protection in a manner that allows domestic industries and vulnerable populations to adjust.
  • For example, in agriculture, the government could pair subsidy rationalization with targeted interventions such as crop insurance, direct benefit transfers, and investment in rural infrastructure.
  • Such measures can mitigate adverse effects while gradually aligning India with global trade norms.
  • There is need for India to embrace a broader strategic vision. While tactical trade negotiations are important, they must be complemented by a long-term industrial and digital policy aimed at enhancing domestic capabilities and self-reliance.
  • Investments in innovation, research, and export diversification will strengthen India’s position in the global economy and reduce reliance on preferential trade treatment.
  • India’s approach must balance global engagement with domestic priorities.
  • International commitments should not compromise the welfare of vulnerable groups or undermine national security.
  • At the same time, India must avoid a protectionist mindset that isolates the economy from global opportunities.
  • A pragmatic, well-calibrated strategy is essential to navigate the post-SDT environment, secure economic growth, and enhance India’s standing in global trade.

Way Forward:

China’s decision to forego SDT is a wake-up call for India. Rather than continuing reliance on preferential treatment, India needs a comprehensive, forward-looking plan that integrates domestic reform, strategic WTO engagement, and investments in competitiveness. By doing so, India can protect vulnerable sectors, enhance trade resilience, and ensure sustainable growth in an increasingly complex global trade environment.

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