EU-India Trade and Technology Council: A chance to join forces for a “Euro-India Stack”
This is an op-ed by Sebastiano Toffaletti, DIGITAL SME Secretary General.
The upcoming EU-India Trade and Technology Council presents an invaluable opportunity for an exchange on India’s pioneering approach to Digital Public Infrastructure. India’s success is not just about the technical deployment of digital solutions but also about the governance models, open-source philosophy, and public-private collaboration that have enabled rapid scaling and widespread adoption – an experience which can aid Europe’s quest for tech sovereignty.
Launched by the EU and India back in 2023, the bilateral Trade and Technology Council (TTC) aimed at deepening a partnership that was already worth € 120 billion of digital products and services were trade back in 2022[i].
The coming up ministerial exchange at the end of February presents a critical chance for both regions to have a meaningful collaboration on digital public infrastructure and technological resilience.
Europe is at a critical juncture vis-à-vis boosting competitiveness and regaining ownership of value generated in the digital economy, while defending its freedom and democracy. As Europe struggles with its quest for tech sovereignty, it must take the opportunity of the dialogue with India to explore learnings from the “India Stack” – a comprehensive suite of digital tools designed to facilitate seamless interactions between governments, businesses, and citizens.
What is the India Stack?
India has spearheaded pioneering work to create foundational blocks for the relationship between citizens/businesses and the state: digital identity, payments, and data exchanges. These three core building blocks, designed to be modular and interoperable, provided a suite of open-source digital tools connecting citizens and businesses with the state. These foundational layers – which came to be known as “India Stack” – have democratised access to financial and social services across India, serving as a testament to the power of integrated digital public infrastructure.
Yet, the India Stack has been expanded beyond these components into a whole “DPI-enabled economy”. The Beckn protocol that implements India Stack encompasses for example: open banking, unified indirect tax and toll, unified health interface, open network for digital commerce, digital credential wallet, open network for education, open agri network, open mobility network, and much more.
India’s model is being recognised widely as a tool for fostering inclusion and development in the Global South, with DPI programmes being increasingly incorporated into global initiatives like the G20, the UN, and the Global Digital Compact. The potential of India’s approach, however, should not be confined to developing economies. Learnings can and should be applied to Europe’s quest for technological sovereignty and leadership.
What could Europe learn from the India Stack?
As has recently been called for, Europe urgently needs its own EuroStack – logical and physical infrastructures to secure Europe’s role in competitive digital value chains. The EuroStack concept extends beyond public service delivery and inclusion to address the imperatives of sovereignty, independence, and security across the digital supply chain. EuroStack does not only involve interoperable software components, but includes the entire digital value chain, from connectivity to cloud computing to digital platforms and AI models.
With this in mind, EuroStack incorporates initiatives which echo the core components of India Stack: the European digital identity wallet, secure payments with the proposed Digital Euro promoted by the ECB, and data spaces.
In pursuit of a robust and competitive EuroStack, Europe can learn from India’s approach to DPI. India’s success is not just about the technical deployment of digital solutions but also about the governance models, open-source philosophy, and public-private collaboration that have enabled rapid scaling and widespread adoption.
Potential areas of learning for Europe include:
- Interoperability and Standardisation: One of the key strengths of India Stack is its emphasis on open standards and interoperability, allowing various stakeholders—government agencies, private enterprises, and individuals—to seamlessly interact within the digital ecosystem. Europe’s standardization strategy must embrace interoperability. It must select strategic technology standards and promote their adoption to reduce the industry’s fragmentation and support the private sector’s alignment and federation around critical technology infrastructures.
- Public-Private Collaboration: India Stack has been successful due to strong collaboration between the government and private sector. EuroStack must leverage similar cooperation, ensuring that European SMEs and innovators play a key role in shaping and deploying the digital infrastructure.
- Adoption: Europe can learn from India Stack’s massive adoption. An average of 8,6 billion mobile payments take place monthly on India Stack, a technology that servers 1,2 billion people. The success lies in a combination of factors, such as privately led Open-Source applications running on government-mandated citizens’ digital identities. Europe must learn from this experience to leverage its own tech private sector around public initiatives, such as eIDAS.
- Scalability and Inclusion: The success of India Stack lies in its scalability and accessibility for all citizens, from urban centres to remote villages. EuroStack should prioritise inclusivity by designing solutions that cater to individuals, businesses, and public administrations across the EU, regardless of size or sector.
- Data Empowerment and Governance: India Stack’s data-sharing framework enables individuals to access and control their data securely. Europe, with its strong data protection regulations under the GDPR, has the opportunity to refine and expand user-centric data governance models, ensuring privacy while fostering innovation and data-driven services.
- Cost Efficiency and Open-Source Frameworks: A critical aspect of India Stack’s success is its cost-efficient and open-source approach, reducing dependency on proprietary systems. Europe must explore similar models to decrease reliance on foreign tech providers and create sovereign, cost-effective digital solutions that benefit both public institutions and private companies.
EU-India TTC as an opportunity for collaboration
The upcoming EU-India TTC provides a strategic platform to discuss how these learnings can be translated into concrete actions.
From an industrial and scientific viewpoint, either region has strengths and capabilities to control specific layers of the technological stack, from hardware and basic infrastructure to software applications, services, and governance. A strategic trade partnership can offer each side not only a learning opportunity, but also the chance to reduce excessive dependencies of technology providers from the US or China and rather differentiate their own supply chains.
SMEs and industry stakeholders must be central to this dialogue. SMEs are the backbone of both economies and play a vital role in driving innovation and economic growth. Their participation can ensure that the development of digital infrastructures is attuned to the needs of diverse business landscapes.
By leveraging the strengths of India Stack while tailoring them to Europe’s unique needs, the EU can chart a course toward true digital resilience. This dialogue is not only timely but essential for fostering technological sovereignty and mutual growth.
