The declaration on the circular economic model said both sides consider that enhancing resource efficiency and moving towards a more circular economic model that reduces primary resource consumption is important, notably in the context of the post Covid-19 economic recovery efforts.
The 27-nation EU is India's largest trading partner for goods with trade exceeding 100 billion dollars. The bloc is one of the largest investors in India with cumulative investment of over 91 billion dollars. The EU is also an important source for technology, innovation and best practices for India.
Under the new framework of circular economic model, the two sides vowed to strengthen ongoing cooperation by exchanging regulatory and standardisation approaches, management systems, best practices and joint research in the field of resource efficiency, energy efficiency and circular economy.
The declaration mentioned that the objectives of the new initiative is to establish an India-EU Resource Efficiency and Circular Economy Partnership, bringing together representatives of relevant stakeholders from both sides, including governments, businesses academia and research institutes.
In a separate joint statement, the two sides resolved to boost cooperation to support clean energy transition, resource efficiency and circular economy, and the necessary technological leaps, while opening new business opportunities.
"India and the EU will further develop cooperation on smart and sustainable urbanisation, information and communication technology, transport, space and health security," it said.
"They agreed to jointly tackle water issues, air pollution, plastic and marine litter. Exchanges on research and innovation will be increased to further underpin progress in these areas," the statement added.
In the summit, the two sides also decided to set up a high-level dialogue to address trade irritants and improving conditions for traders and investors on both sides as well as discuss supply chain linkages.
"India and the EU agreed to keep the global trading system open, with the WTO as the bedrock of the rules-based multilateral trading system and to step up cooperation to preserve, strengthen and reform the WTO," the joint statement said.
It said the cooperation should address today's challenges effectively, including post-Covid-19 economic recovery efforts with the objectives of a sustainable, socially just and resource-efficient economy.
The two sides also welcomed the ongoing activity in India of the European Investment Bank and its upcoming planned investments of Euro 550 million in the Pune and Bhopal Metro Rail projects.