"India is very interested in this partnership, it will give it the status of a big player," said an EU official ahead of the bloc's one-day meeting with Prime Minister Manmohan Singh and two of his ministers in the Hague, the Netherlands.

"It will put them in a club of EU special partners alongside the United States, Canada, Japan, China and Russia."

The EU, as a bloc is both the leading foreign investor in India -- the world's second-most populous country -- and its biggest trading partner.

But it ploughs 10 times as much investment into China, and its total trade with India is worth less than 20 percent of the vigorous flow of exports and imports between Europe and China.

Fostering healthier economic relations is a key part of the strategic partnership, an action plan the two sides expect to approve at their next annual meeting in 2005.

But they are also keen to improve cultural ties and cooperation in the battles against HIV/AIDS, terrorism and the spread of weapons of mass destruction.

Many Europeans also believe India -- which is pressing for a permanent seat in the U.N. Security Council -- could be a multilateralist ally in resisting what they see as the current U.S. administration's unilateralism.

"It is important that we start coordinating with India, not only to strengthen the U.N. but also to make preparations together for international meetings such as those on the protection of women and climate change," the EU official said.

Shortly before leaving for Europe on Sunday, Singh said the two sides were "natural partners" and welcomed the new arrangement as "recognition of India's growing stature and influence".