A Eurocentric reset, a gateway for India
The U.K. and the EU are among India's most important trade and diplomatic partners, and their renewed alignment could redraw India's global strategy map. For Indian exporters, this could simplify compliance and revive supply chain fluidity. For policymakers, this presents an opportunity to strengthen strategic alliances. For the diaspora, this could reshape education and migration prospects. In short, the U.K.-EU reset is not just a regional recalibration. It is a moment that could redefine India's trade corridors, diplomatic engagements, and soft power leverage in the West.
A reshaping of India's export dynamics
The renewed collaboration in areas such as food safety, customs coordination and fisheries is poised to significantly influence Indian exports to both regions. In FY2024, India's exports to the EU stood at $86 billion, while exports to the U.K. totalled $12 billion, highlighting their strategic role in India's external trade.
Post-Brexit, Indian exporters have grappled with navigating two separate regulatory regimes, especially in key sectors such as pharmaceuticals, textiles, seafood, and agro-based products. A harmonised U.K.-EU regulatory framework could simplify compliance, reduce redundancy and lower operational costs. India, a significant supplier of generic medicines to the U.K., fulfilling over 25% of its pharmaceutical needs, would benefit from a unified approval mechanism that accelerates clearances and enhances cost efficiency.
Similarly, Indian seafood exports, valued at ₹60,523.89 crore (approximately $7.38 billion) in FY2024, could face fewer trade barriers if the food standards and fishing policies are aligned. However, tighter common standards might challenge Indian Small and Medium Enterprises, which often lack the capital and technical know-how. To remain competitive, India must strengthen its export ecosystem through initiatives such as the Remission of Duties and Taxes on Exported Products (RoDTEP) and the Production-Linked Incentive (PLI) scheme.
A stronger voice in global diplomacy
Beyond trade, the geopolitical dimensions are significant for India. A more synchronised U.K.-EU foreign policy, particularly in defence and the Indo-Pacific, offers India an avenue to enhance its multilateral coordination with the EU. India already operates under the EU-India Strategic Partnership: A Roadmap to 2025, and in 2022, it renewed its Comprehensive Strategic Partnership with the U.K., covering cyber security, climate action, and maritime security.
As the U.K. realigns its policies with the EU, India could benefit from cohesive western support on global platforms, such as the United Nations, the G-20, and the World Trade Organization (WTO). Strategic ties with France, Germany and the U.K. are vital to India's defence modernisation and technological ambitions, especially regarding naval power.
Notably, India-France bilateral trade reached $15.1 billion in 2024-25; landmark defence agreements with Germany and the U.K. have focused on technology transfer and joint development. A coordinated U.K.-EU defence policy could open doors for deeper trilateral or multilateral engagements in the Indo-Pacific, where shared concerns over China's assertiveness persist.
Additionally, India's leadership in the Global South — spotlighted during its G-20 presidency in 2023 — can be amplified by leveraging the U.K.-EU thaw to drive collective action on climate finance, digital infrastructure and global governance reforms. A unified West could become a more dependable ally for India if it engages with India, strategically and assertively, in the future
Enhancing trade and talent power
On the mobility front, India has the world's largest diaspora, which includes large communities in the U.K. and across the EU. In 2024, the U.K. issued more than 1,10,000 student visas to Indian nationals, placing India among the top sources of international students.
While post-Brexit restrictions limited access for Indian professionals to EU markets, renewed U.K.-EU border coordination could enable partial mobility, creating a semi-integrated talent corridor. This could also bolster India's migration pacts with Germany, France and Portugal by embedding them within a broader U.K.-EU framework.
These converging shifts — trade liberalisation, mobility reintegration, and foreign policy alignment — present rare diplomatic and economic opportunities. To seize these opportunities, India must accelerate reforms, modernise its export infrastructure, and assert its role in global governance.
Vipin Benny is Assistant Professor and Research Supervisor, St. Thomas College (Autonomous), Thrissur, Kerala, and the author of 'The Scenario of Economic Innovations in India: An Idea for Inventor' (2021) and 'Elevating Excellence: The Relevance of Internal Marketing in Higher Education Institutions in India' (2023)
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