India, European Union Extend Strategic Technology and Trade Corporation at Third India-EU Trade and Technology Council Meeting

On 16 July 2026, India and the EU are strengthening their partnership at the third Trade and Technology Council meeting, focusing on digital innovation, supply chain resilience, clean energy, secure connectivity, and cooperation in AI, semiconductors, research, and sustainable growth.

India and the EU reaffirmed their commitment at the third Trade and Technology Council meeting, focusing on expanding digital technologies, AI, semiconductors, and cybersecurity while maintaining the balance between clean energy and supply chains. India and the EU are moving towards boosting innovation through joint research, startups, universities, and skill programs for emerging technologies. As geopolitical changes alter global trade, robust India-EU cooperation can create new opportunities for startups, manufacturers, and tech firms, and support stability and competitiveness. They reviewed progress and approved to enhance economic resilience, technological advantage, and secure global supply chains. This alliance demonstrates shared aims for secure, sustainable, and inclusive development. 

The goal was to increase supply chain diversity and reduce dependence on concentrated manufacturing hubs for vital technologies and materials. Trade partnership committed to enhancing market access, investments, technology transfer, and transparent regulations to promote innovation, while protecting data, cybersecurity, and consumer trust. The TTC connects trade policy with technological collaboration, helping India and Europe to address global challenges and encourage investment, modernization, and innovation. Discussions highlighted trusted digital infrastructure, responsible AI, semiconductors, green hydrogen, electric mobility, and the secure telecommunication sector.

Impact on the IT Services Sector

The global IT services market size is calculated at USD 1.61 trillion in 2025 and is predicted to increase from USD 1.72 trillion in 2026 to approximately USD 3.17 trillion by 2035, expanding at a CAGR of 7.01% from 2026 to 2035.

According to Precedence Research, Investments in cybersecurity and digital transformation are driving the need to secure platforms for businesses and governments. The India-EU Trade and Technology Council focuses on fueling benefits to the technology sector by strengthening alliances in AI, cybersecurity, and data governance. India’s increase in technology hubs and the EU's inclination to create opportunities for Indian software firms and European companies through shared research, startups, and innovation ecosystems.

Enhanced regulatory negotiation will streamline cross-border trade, improve compliance, and increase operational efficiency. Indian startups in AI, fintech, healthcare, educational technology, and enterprise software could access significant funding and market opportunities in Europe. Joint initiatives in digital services and academic collaborations will develop a future workforce. Overall, this partnership reinforces India as a technology collaborator, boosts exports, fosters innovation, creates job opportunities, and develops competitiveness in the digital economy.

Impact on the Electronic Manufacturing Services Sector

The global electronic manufacturing services market size is calculated at USD 617.90 billion in 2025 and is predicted to increase from USD 661.34 billion in 2026 to approximately USD 1,201.16 billion by 2035, expanding at a CAGR of 6.87% from 2026 to 2035.

According to Precedence Research, driven by rising global demand and the need to diversify electronic manufacturing supply chains, both regions in the India-EU strategic partnership see collaboration as vital for resilience and competitiveness. European firms may expand partnerships through joint ventures and investments, improving cooperation in electronics, raw materials, and automation. Joint research could advance power electronics, automotive semiconductors, and communication systems, creating jobs, attracting investment, and enabling technology transfer.

Investments in research, manufacturing, and workforce training aim to make India a key semiconductor hub. Indian manufacturers can access European technologies and regulatory standards, increasing global competitiveness, while the European government benefits from India's rising manufacturing infrastructure. Overall, this partnership will build diverse, and sustainable supply chains, accelerating capacity expansion, exports, and long-term self-reliance.

Impact on the Renewable Energy Sector

The global renewable energy market size accounted for USD 1.74 trillion in 2025 and is predicted to increase from USD 2.04 trillion in 2026 to approximately USD 8.25 trillion by 2035, representing a CAGR of 16.84% from 2026 to 2035.

According to Precedence Research, growth is supported by shared climate goals and collaboration in green hydrogen, solar, wind, EVs, smart grids, and energy efficiency. The India-EU partnership in renewable energy is set to grow, with benefits including technology transfer, financing, and joint research on clean hydrogen, electrification, carbon reduction, and sustainable transport. Europe's technology expertise and India's manufacturing strength enable joint investments, research, and energy solutions, promoting sustainable industrial progress through low-carbon practices, circular economy, resource efficiency, and resilient infrastructure.

The partnership underscores India and the EU’s commitment to sustainable development, modernization, energy security, and climate targets. Indian firms gain access to European technology and investment networks by aligning with European standards and supply chains, which enhances global competitiveness. Increased green infrastructure investments can create jobs across engineering, manufacturing, and R&D practices.

Expert Opinion

According to the expert view, the Third India-EU Trade and Technology Council meeting advances a resilient, innovation-driven partnership, focusing on high-value sectors such as semiconductors, digital infrastructure, cybersecurity, clean energy, and manufacturing. Deeper EU-India corporate ties attract investment, modernize industries, and strengthen global technology roles. European firms can benefit from India's digital growth, manufacturing, skilled workforce, and markets. This move reflects the global economic position of technology and supply chain security.

Success depends on reliable implementation, regulation, investment, and stakeholder engagement. The council focuses on reducing barriers to innovation and fostering lasting partnerships among governments, research institutions, startups, and industry. Prioritizing trusted infrastructure, responsible AI is crucial amid geopolitical tensions.  These efforts could position the council as a leading platform for digital and trade cooperation, boosting innovation, supporting sustainability, and creating economic opportunities for the supply chain, underscoring the strategic importance of India-EU relations.