THE IMPACT OF EUROPEAN UNION (EU)-INDIA STRATEGIC PARTNERSHIP TOWARDS INDIA ECONOMIC DEVELOPMENT IN TERM OF TRADE AND INVESTMENT 2004-2011

Abstract

During 2004 to 2011, by proving Indian ability to engage in solid and diversified partnership with strategic partners here which refers to the EU member countries, India would enhance its credibility as an effective actor. By establishing good relations in the economic field with strategic partnership with the EU, India would also advance its economic development to a more mature stage. Thus, the study will then analyze more the impact of EU-India strategic partnership during time framework 2004 to 2011. Hence, the research question will be how were the impact of European Union–India strategic partnership towards India economic development in term of trade and investment (2004-2011). This study will use a neoliberalism school of thought along with the complex interdependence and its implementation of trade liberalization between parties involved. Strategic partnership as a development cooperation for both parties has become significant impact for Indian Government in considering its mutual interest, strategic thinking and foreign policy decision in terms of trade and investment. India had maintained a good performance in export sectors. Stable economic environment in India is responsible for steady FDI inflow. Since India and the EU approach tends to emphasize the possibility of mutual wins, they are interested in this strategic partnership which can arrange jointly profitable arrangements and compromises. However, what is apparent for the moment is the unease and tension surrounding economic integration. To remedy this situation, the Indian Government should work on the implementation a series of measures to raise its economic profile and create a conducive political space.