India-EU agreement to establish an EU-US-style Trade and Technology Council (TTC) is a pivotal action designed to ensure that political trust and interconnections direct the economic ties, rather than the other way around, as it did in the EU’s case with China – an experience the EU is beginning to reconsider and accurate.

The context of the TTC concept is what gives it political heft. (TTC) is an important strategic step aiming towards assuring that governmental confidence and interconnections influence commercial interactions rather than the other way around, as was the case in the past.

In early 2020, the government plans to loosen relations and develop methods to debate defining standards for emerging technology. However, Germany, as the EU chair at the time, initiated a digital conversation with China.

As a result, the concept remained dormant until it became evident to Brussels.

Soon after, the EU moved to rebalance its relations with China, withdrew from the financial pact, and sought to revive the EU-US collaboration with a much more organized TTC. This occurred in June 2021, and the Council currently includes about ten task forces, with the secretary of state and commerce conducting the institution at the top standard.

The EU signed a similar accord on Monday with India. What for? Since Brussels recognised the importance of consistent political guidance in resolving economic disparities that have historically got in the way of both parties negotiating any substantial India-EU trade deal. Almost nine months after pledging to resume trade discussions in the aftermath of the Porto Summit, progress had remained slow. Furthermore, the EU is a huge bureaucracy.

This TTC, as mentioned in the news briefing statement, will give a “political direction” in a fast shifting global situation. China’s economic aggressiveness, but now Russia’s military antagonism, are clearly compelling the EU to link itself strategically nearer to the Indian sub, in line with the Quadri strategy.

However unlike United States, where conflicts and disagreements have overshadowed TTC negotiations, India and the EU may forge a much more favourable course. However, success on FTA will undoubtedly become the first major litmus test for TTC, which is anticipated to include the trade minister, the external affairs minister, and the IT minister at the topmost layer. The EU, like the US, is anticipated to nominate two executive vice presidents.

In fact, the TTC between India has surpassed the one in the EU and Japan, which is currently being negotiated. The creation of a TTC-like group from the EU barracks also demonstrates how the Russian-Ukraine war situation has transformed a primarily geographical trade facilitation group into a more political institution. From now on, the EU will prioritise politics and security before economic collaboration. And it is here that India matters in terms of confidence, democracy culture, and common interests.

With an Indian perspective, the difficult government choice will be to accept European economic norms. At a certain point, as India stands at the top table to debate and affect future technical standards, most of which will be driven by political trust, as nuclear technology was during the Cold War, it will have to elevate its very own reputation through accumulated and equivalent standards.