Prime Minister Narendra Modi’s recent outreach across the UAE and several European countries could accelerate India’s push to become the world’s third-largest economy, former diplomat Manjeev Singh Puri told CNBC-TV18. The tour, he said, is helping deepen trade, technology and investment ties with the European Union and Nordic nations at a pivotal moment for India’s global economic strategy.
Puri noted the timing is important: India signed a landmark free trade agreement with the EU earlier this year, and the current visits are aimed at getting that pact fully operational. He described the deal as having “game-changing” potential for India’s growth and global integration.
The EU remains one of India’s most significant economic partners—as a major investor and one of its largest trading partners. Puri emphasized that India’s outreach goes beyond traditional interlocutors like France and Germany to include influential economies such as the Netherlands, Sweden, Norway and Italy. This broader engagement, he said, signals a strategic shift in India’s external economic relations.
“We are already the fifth-largest economy, and nothing is going to stop us from becoming the third-largest economy,” Puri said, adding that India is on track to surpass European economies in size.
He also pointed out that Europe’s approach to Asia is changing: many countries are looking beyond China as India’s economic influence expands. Strengthening ties with Europe, Puri argued, supports a more multipolar and multi-aligned global order.
Technology partnerships are a key focus. Puri highlighted cooperation in semiconductors, pharmaceuticals and advanced manufacturing—areas where Europe has deep capabilities. He recalled that RNA vaccine technology originated with a German firm before being commercialized worldwide, underscoring the value of European expertise. Indian IT and engineering firms such as Tata Consultancy Services, Infosys and Wipro already have substantial footprints across Europe.
Modi’s trip began in the UAE, where India signed important energy and infrastructure agreements amid concerns about instability around the Strait of Hormuz. Puri described the Gulf relationship as central to India’s energy security and noted the importance of diversifying routes and partners in the current geopolitical context.
The outreach also ties into the India–Middle East–Europe Economic Corridor (IMEC), launched during India’s G20 presidency to boost connectivity between India, the Gulf and Europe through multimodal transport links.
In the Netherlands, discussions covered trade, investment, semiconductors, renewable energy and geopolitical issues such as the conflicts in Ukraine and tensions involving Iran. India and the Netherlands signed 17 agreements, including a semiconductor partnership that involves ASML and Tata.
In Sweden, talks focused on innovation, sustainability and R&D. Modi met CEOs from major global firms, including Vodafone, Nokia, Shell, Airbus, Volvo, Maersk, Nestlé and Unilever. Puri called Sweden a compact but influential economy whose firms have had transformative effects in India.
The India-Nordic Summit in Norway marked the first visit by an Indian prime minister in over four decades. Discussions emphasized green technology, defence, supply chains, the blue economy and space cooperation. Puri noted Norway’s broader significance, pointing out that its sovereign wealth fund is among the world’s largest and is actively exploring investment opportunities in India.
Modi was awarded the Grand Cross of the Royal Norwegian Order of Merit during the Oslo visit. Leaders from Denmark, Finland, Iceland, Norway and Sweden attended the summit; India-Nordic trade reached $19 billion in 2024.
The final stop on the tour is Italy, where Modi will meet Prime Minister Giorgia Meloni to further deepen trade and investment links in the wake of the India-EU FTA. Puri described Italy as a G7 powerhouse with collaborative potential across defence, chemicals and water management.
Overall, Puri said, the message India has been sending since the FTA was signed is clear: India is open for international business, and its expanding partnerships with Europe and the Gulf are central to its long-term economic ascent.