India’s Minister of Commerce and Industry, Piyush Goyal, has expressed concerns about the potential for free trade agreements with the European Union and the European Free Trade Association (EFTA) group.
He emphasised that the two regions have different levels of economic development and that the EU and EFTA need to understand these differences. Goyal believes that both regions can significantly help India expand its engagement in trade, innovation, tourism, investments, technology, and clean energy. The Nordic and Baltic nations can potentially act as India’s ambassadors in the EU and EFTA, helping them understand the significant differences between the two regions.
He also highlighted the disparity between the two nations, stating that free trade must have enough opportunity to catch up when participating nations are starting from two different levels. The Nordic-Baltic region has built closer ties with India in recent years, with popular industries such as yoga, Indian cuisine, textiles, ayurveda, and Bollywood.
The Baltic states, Estonia, Latvia, and Lithuania, are inclined to build closer relations with India rather than China due to geopolitical considerations and concerns about Russia’s influence. The historic and enduring security threat perceived from Russia shapes the Baltic states’ foreign policy decisions. China’s close partnership with Russia raises apprehensions in the Baltic region. The Baltic states, having experienced Soviet occupation, view Russia as a security threat and are wary of any alignment between Moscow and Beijing. China’s collaboration with Russia in various geopolitical forums can be perceived as undermining the security and independence of the Baltic states.
In contrast, India represents a more neutral and potentially strategic partner for the Baltic states. India’s non-aligned foreign policy, commitment to democratic values, and distance from the complex power dynamics in Eastern Europe make it an attractive partner. Strengthening ties with India provides the Baltic states with diversification in diplomatic relations, reducing dependence on alliances that might have implications for their security. Economic considerations also play a role. India’s growing economy presents significant trade and investment opportunities for the Baltic states. China’s economic influence, often accompanied by geopolitical considerations, may raise concerns about potential economic dependencies and vulnerabilities.
Moreover, shared democratic values and a commitment to multilateralism align the Baltic states more closely with India. The democratic principles upheld by India resonate with the Baltic states’ own commitment to democratic governance, human rights, and the rule of law. Navigating away from closer ties with China, given its partnership with Russia, aligns with the Baltic states’ efforts to secure their independence and enhance economic opportunities.
