Defense Business and Industry

Military Collaboration: Key to Strengthening EU-India Trade

India and the European Union (EU) are increasingly aligning their defense strategies, with both sides recognizing the potential of military collaboration to enhance trade relations, currently challenged by agricultural and automotive negotiations. India’s defense budget, projected to exceed $70 billion by 2025-26, and its ambition to become a weapons manufacturing hub make it an attractive partner for the EU, particularly amid growing global security dynamics. Recent defense partnerships, including the submarine deal with Germany and ongoing Rafale fighter collaborations with France, underscore India’s commitment to European technology as a pathway to self-reliance. However, India’s balancing act in global geopolitics, maintaining ties with Russia, introduces complexities, yet defense cooperation remains central to solidifying a $150 billion free trade agreement, indicating a strategic pivot for both parties.

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