The on going euro crisis in the euro zone seems to be deeply effected and unsolved, despite of receiving unprecedented support from the European Union and IMF. The euro zone financial turbulence and the political crisis have revealed weaknesses in European integration and raised the question against euro as single currency and sovereignty of the national interest. The consequence of this has been widespread irritation between member states and never ending political and economic crisis. On going political dialogs between strong and weak economic player in side the European Union came over as a dominant player for the idea of European integration, which is noticed as one stronger step towards federal system of European Union, beyond the national interest.
At the same time, on going protest in India against corruption and corrupt politician’s, bringing uncertainty of Indian economic growth and model of federalism. Indian federalism and governance is at a crossroad for ‘idea of India’, which has to be contested on the basis of good governance, transparency, legitimacy, accountability, and efficiency.
In fact, the recent crisis has tested India and the European Union to the most by examining their decision-making institutions and political will towards economic- Political integration process. By analyzing the period from 2008 to October 2012; the European Union has been identified as a political edifice that develops as crises occur, and explain the complexity of integration by specifying the indicators of good governance in a group of 27 countries that are only slowly developing a common European identity and raising question of continuation of European Union integration process. In other side India were able to maintain 65 years of Independence with unity in diversity and working for economic and political transformation.
In current scenario where, the challenges thrown up by market-based development in a globalizing environment, require the various governmental to act in a manner that provides cost-effective physical and social infrastructure, create the proper enabling environment for growth, and efficiently regulates the market where necessary. This is a challenge for any single government, and Central, state and even local governments in India as well as European Union must accomplish this with some degree of coordination. Interest of European Union towards India and Indian interest towards European Union must be defined and modify according to the time demand for the betterment of both the continents.
Keywords: India, European Union, Economy, Global, Partnership and cooperation