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At the time of the post-cold war, Europe experienced a privileged commercial status. However, under the United States (United States), President Donald Trump, America is trying to change this, arguing that it harms American economic interests. As part of Trump’s “Make America Great Again” campaign (Maga), he imposed reciprocal prices on European states to compensate for their favorable trade balance with the United States.
Another discord point is the strategic divergence on European security. This stems from the conviction of the United States that Europe does not pass its fair share of the gross domestic product (GDP) on the safety guarantee of the Organization of the Treaty (NATO) (NATO).
Recent provocative developments have intensified tensions, especially Controversial remarks of the US vice-president JD VANCE at the Munich Security Conference And Elon Musk’s support for far-right movements in Europe, including AFD (alternative for Germany) and British Reformation of the United Kingdom (United Kingdom), via its popular X platform.
Current tensions between Europe and the United States are long-standing issues and represent an unprecedented confluence of problems that can lead to deeper divisions across the Atlantic, according to Antonio Missiroli, a former ONO assistant secretary general for emerging security challenges.
The transatlantic partnership had already faced fractures, such as The withdrawal of France from the military command of NATO in 1966 And trade tensions in the 1970s and 1980s, but none was as clear as it is. Slags emerged during Trump’s previous mandate when he publicly retaliated with French president Emmanuel Macron at the top of NATO 2019. The interrelage of the Biden administration has enabled the European Union (EU) partners to temporarily forget these strains. However, Trump’s return as American president and withdrawn from military support to Ukraine made these strains too worrying to miss. Current tensions between Europe and the United States are Long -standing problems And represent an unprecedented confluence of problems which can lead to deeper divisions across the Atlantic, according to Antonio Missiroli, a former assistant secretary of NATO for emerging security challenges.
Strengthen EU security capacity
Given the current geopolitical challenges, the EU has tried to strengthen its security and defense policies in accordance with the objectives of the Versailles Declaration and the 2022 strategic compass. The 2022 EU Strategic Compass serves as a plan to strengthen EU security and defense capacities by 2030. The strategic compass describes four main action points: ACT, SECURE, INVEST and partner (external action of the European Union 2022). Under the “law”, the EU undertakes to improve crisis response capacities by increasing a rapid deployment capacity (DRC) and improving its command and control structures. “Secure” emphasizes “evaluation of preventive threats”, strengthening intelligence capacities and strengthening cyber defense. “Invest” focuses on investment in advanced technologies to reduce dependencies on non -European sources and fill strategic gaps. Finally, the “partner” obliges the EU to improve cooperation with its crucial partner and the UN. The United States has asked European nations to increase defense spending and contribute more to Europe’s security. France has long urged the EU to develop an autonomous defense and security policy for Europe, which previously failed due to a lack of consensus. Although the consensus seems to accumulate now, the lack On defense and security policy is the least of Europe’s concerns. What also torments it is a lack of defense capacity, due to its long -standing dependence on the US military security and military industry for the supply of military equipment.
The United States has asked European nations to increase defense spending and contribute more to Europe’s security.
THE Cumulative GDP of Europe is greater than 18.5 billions of US dollars and the debt / GDP ratio is around 81.6%. Basically, Europe has no financial problem to increase its defense expenses to say that even 3.5% of its GDP, to become more independent for its defense and protect its sovereignty. However, the defense industry is already overwhelmed. For example, Dassault, a French aerospace company, has an order of 400 aircraft in various European countries, the Middle East and Southeast Asia, but lack of manufacturing capacity in France. Likewise, Rheinmetall AG, an automotive and weapon company based in Germany, can Make only 60,000 to 70,000 shells and other shells per year against the requirement of 1.1 million shells. Knds Group Companies Nexter Systems SA and Krauss-Maffei Wegmann GmbH & Co. order the arrears Return to 15.7 billion euros by the end of 2024. Similar capacity constraints can also affect other European defense manufacturers.
Explore the role of India
While European nations seek to extend and modernize their defense industry to respond to emerging and future threats, India can play a crucial role in the supply chains of the EU defense industry. The EU and India explore the possibility of a defense and security pact, also called permanent structured cooperation (Pesco))Similar to the EU agreements / pacts with Japan and South Korea. The PESCO framework should allow the EU member states to work jointly with India to develop and invest in shared defense capacities and improve the operational preparation of the armed forces. Although this will help India access advanced technologies, European states would benefit Robust and competitive manufacturing facilities in India, provided that these manufacturers have set up factories in India.
In 2014, India launched its “Make in India” initiative To establish itself as a global manufacturing center. In this initiative, defense is a critical objective. Many private players have entered the field of defense manufacturing in recent years. Among these, Naval and Engineering, Tata Group, Bharat Forge, Adani Group and Mahindra are not very remarkable. In the past five to six years, the Swedish weapon manufacturer, Saab, has already set up a Manufacturing unit in IndiaLocated in Jhajjar, Haryana, where they plan to produce the Carl-Gustaf M4 weapon. L&T MBDA Missile Systems Limited, a joint venture With Larsen & Toubro located in Coimbatore, has already started to make various missiles.
Over the past five to six years, the Swedish weapons manufacturer, Saab has already set up a manufacturing unit in India, located in Jhajjar, Haryana, where they plan to produce the Carl-Gustaf M4 weapon.
India can capitalize on the EU allowance from 500 billion euros to Increase ammunition stocks. Indian ordnances only slowdowns To meet overvoltage requirements during the war and have modernized manufacturing to make high -tech ammunition, which can be used to equip the EU soldiers. Some EU members already have The ordered ammunition of these companies in the public sector (PSU). Joint production with private ammunition manufacturers also remains a possibility, because some of these manufacturers have already collaborations with the EU Companies.
The Indian government is trying to launch India as a leading naval manufacturer with a cash injection of several billion dollars, in accordance with its Viksit Bharat 2047 vision. The government has proposed to integrate PSU naval sites in order to provide the essential functional and financial autonomy which is currently unavailable to them because of the inflated bureaucracy. In its last budget announced on February 1, 2025, the government allocated US dollars to a maritime development fund (MDF) to support the country’s maritime sector. This would help India to emerge as a global competitive shipbuilding center.
Dassault India is in the process of establishing a configuration of maintenance, repair, overhaul (MRO) near Jewar International Airport in the Grand Noida, which can be set up to provide maintenance support To fight jets from the EU states. It already has a joint installation with confidence near Nagpur for the manufacture of aircraft parts. Safran has an installation in Hyderabad for aerodromes. THE Tata Group, in collaboration with Airbus, has already to start Manufacture of C295 military transport aircraft in its factory in VadodaraGujarat. These installations can be extended to meet Rafale requirements for EU members.
The Tata group, in collaboration with Airbus, has already started to manufacture C295 military transport aircraft in its factory in Vadodara, Gujarat.
India has a robust engineering talent basin, an established defense production infrastructure, a large defense budget by emphasizing research and development and indigenization, which allows it to produce complex military equipment at national level and potentially export to other countries as well. Government policies can encourage national and foreign private actors thanks to direct foreign investments (IFS) and other incentives. Since then, we can summarize that India has built a fairly robust defense manufacturing ecosystem with excess capacity to support exports. He is also able to absorb foreign technologies to “do in India”.
However, the question remains: can India seize this opportunity with both hands? With a proactive approach, India should look for opportunities to do for the EU, stimulating its defense export, joint manufacturing and technological development collaboration. Although there is a call in the EU to Do everything in EuropeSeeing the emergency, this may not be possible immediately. Thus, with proactive policies, actions and a skillful diplomacy, India can emerge as a exporter of defense equipment to rearore Europe in the short term and long -term being part of the manufacturing supply chains. For this, India may have to consider the need to create a light and average configuration at the Prime Minister’s office (PMO), and one that works in military mission mode to transform this opportunity into an advantage.
Colonel Deepak Kumar is a retired army veteran and analyst of geopolitical affairs.
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