In his blog post, “Elevating the European Union in South Asia”, Constantino Xavier, senior fellow at the Centre for Social and Economic Progress (CSEP), examines how the European Union (EU) can strengthen its role in South Asia. The blog post draws on revised and expanded remarks Xavier delivered as an invited expert at the European Parliament’s Delegation for Relations with the Countries of South Asia (DSAS) ordinary meeting on 2 July 2026. Xavier argues that the EU has the economic leverage, expertise, and credibility to become a more consequential regional partner. While ties with India have advanced through a trade deal and renewed cooperation in technology, defence, and security, engagement with Bangladesh, Nepal, Sri Lanka, and the Maldives remains comparatively limited. He argues that the EU needs a more coherent regional strategy, stronger diplomatic engagement, and better use of its existing resources.
South Asia’s demographic and economic importance makes it increasingly relevant to European interests. The region is home to approximately two billion people, with a predominantly young population entering the labour market and digital economy. India alone is projected to add around 90 million workers to the global labour force by 2030. Growing trade and investment opportunities are accompanied by climate risks, economic vulnerabilities, and political instability. Xavier highlights the Maldives’ exposure to rising sea levels, Nepal’s climate-related disasters, and Pakistan’s devastating 2022 floods. Geopolitical conflicts, tariff disputes, and rising protectionism have added further pressure on regional trade, energy costs, and growth.
Xavier identifies the main problem as a lack of political commitment rather than insufficient economic engagement. As he puts it, “The challenge, therefore, is not the level of economic engagement; it is often the absence of political engagement, strategic intent, and a persistent mismatch between EU ambition and the efficiency of its instruments”. He recommends more high-level political visits and stronger EU delegations in South Asian capitals. He notes that no president of the European Commission has visited Kathmandu, Dhaka, or Colombo. A more visible European presence, he argues, would signal commitment to countries seeking to diversify their external partnerships amid intensifying great-power competition.
Xavier also proposes shifting towards a more coordinated regional approach centred on the Bay of Bengal. The EU’s broader South Asia framework, which includes both India and Pakistan, can complicate regional policymaking. Focusing on the seven member states of the Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) could offer a more practical basis for cooperation between South and Southeast Asia. Xavier proposes an annual EU-Bay of Bengal dialogue in Brussels, with priorities including infrastructure connectivity, trade and technology supply chains, maritime security, and climate change.
Other recommendations focus on institutional capacity and regional connectivity. The EU could draw on its expertise in digital regulation, public administration, and regulatory standards to support reforms in Bangladesh and Sri Lanka, while helping Nepal and the Maldives strengthen climate policymaking. Xavier also calls for a greater role for the European Investment Bank in financing clean energy, digital connectivity, and port infrastructure. He argues that the EU’s Global Gateway initiative needs stronger implementation in South Asia, and emphasises the importance of advancing the India-Middle East-Europe Economic Corridor (IMEC). The EU-India trade relationship could also generate wider benefits for neighbouring countries through new regional value chains.
Xavier further argues that development assistance must address democratic governance, human rights, conflict mediation, and institutional resilience, while accounting for competition from China and growing resistance to perceived Western political interference. Better coordination with partners, particularly India, is equally important. Overlapping development programmes and maritime security initiatives have created duplication across the region. Xavier calls for new EU-India communication and coordination channels on South Asia, potentially within a broader Indian Ocean-focused dialogue, to align priorities and make regional initiatives more effective.
Overall, Xavier calls for a more active and strategically coherent EU presence in South Asia, with greater emphasis on political engagement, regional connectivity, and institutional capacity-building. He sees closer coordination with India as particularly important to advancing European interests and building stronger regional partnerships across the Bay of Bengal and the wider Indian Ocean.
