India-EU Strengthen AI & Digital Ties as Trade Hits €120 Billion
Written by Team & Rajendra Singh Rathore
New Delhi, March 2025 – European Commission President Ursula von der Leyen, during her visit to India, spotlighted the growing technological partnership between the European Union (EU) and India. This collaboration spans Artificial Intelligence (AI), digital infrastructure, and cybersecurity, as trade between the two regions reached an impressive €120 billion in 2024.
AI: The Cornerstone of India-EU Collaboration
India’s rise as a global AI leader was a focal point of von der Leyen’s address. Highlighting Prime Minister Narendra Modi’s vision of AI as “writing the code of humanity,” she emphasized the shared commitment to responsible AI development. Key areas of collaboration include:
- Ethical AI Governance: Developing frameworks that ensure AI benefits society while mitigating ethical risks.
- AI for Climate Solutions: Joint efforts to use AI in predicting and managing natural disasters.
- Bioinformatics: Advancing healthcare through AI-driven genetic research.
The EU and India are also pooling resources to provide startups and researchers access to high-quality datasets and advanced computing infrastructure, fostering innovation in both regions.
Bridging Digital Public Infrastructure
India’s Aadhaar system and the EU’s digital wallet are paving the way for interoperable digital identity systems. This initiative aims to streamline cross-border transactions, trade facilitation, and online services while prioritizing user security and data protection.
Von der Leyen stated that by integrating their digital ecosystems, the EU and India could set a global benchmark for digital governance.
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AI-Powered Security & Defense Cooperation
Recognizing the critical role of cybersecurity, both regions are enhancing collaboration in:
- Securing undersea data cables for safe cross-continental data transfers.
- Strengthening cybersecurity frameworks to counter AI-driven cyber threats.
- Expanding maritime surveillance using AI to protect trade routes in the Indian Ocean.
These efforts underscore the importance of safeguarding global trade infrastructure amid increasing cyber risks.
AI at the Heart of Future Trade Growth
The EU-India Trade and Technology Council (TTC) has prioritized AI and semiconductor research in trade negotiations. As discussions on a Free Trade Agreement progress, AI is expected to drive economic growth by enabling automation, smart manufacturing, and digital trade solutions.
Von der Leyen concluded by affirming that AI will not only transform industries but also deepen EU-India relations. The upcoming AI Summit in India will further explore opportunities for collaboration in this dynamic sector.
source
https://ec.europa.eu/commission/presscorner/detail/en/statement_25_643
Our predictions
Effect on Asian Countries
- AI & Trade Competition: The India-EU AI partnership may create competition for Asian countries, especially in AI, semiconductors, and digital trade.
- Tech Collaboration: Some Asian nations with strong AI and semiconductor industries might seek deeper collaboration with India to counterbalance other global AI powers.
- Cybersecurity & Digital Infrastructure: Enhanced India-EU cooperation in cybersecurity and digital governance could influence tech policies in Asian countries.
- Shifting AI Leadership: India’s growing role in AI governance, ethical AI, and smart manufacturing could reshape the regional AI landscape in Asia