The agreement, scheduled to be signed on January 27 at the 16th EU-India Summit in New Delhi, aims to deepen military-industrial cooperation while supporting the security interests of both regions.
Officials from the EU and India are expected to participate as observers, with stakeholders believing the forum will strengthen cooperation and improve transparency of bilateral defense commitments.
India has maintained significant defense trade with EU member states, including France, Germany, Spain and Italy. Over the past two years, Indian exports to Europe have increased significantly, driven by demand for munitions and explosives as European countries replenish their military stockpiles. India’s exports to the European Union have surged, surpassing $135 million between February 2022 and July 2024, as Europe rearms amid the ongoing conflict in Ukraine and evolving security challenges.
The partnership aims to combine the EU’s defense research and development expertise with India’s expanding industrial base. European officials expect the collaboration to strengthen manufacturing capabilities and expand supply networks available to the EU’s armed forces.
The deal will also open up opportunities for Indian companies to participate in the nearly $200 billion European Security Action Program for Europe, designed to accelerate the defense preparedness of member states.
Kaja Kallas, head of European diplomacy confirmed Wednesday that the two parties had agreed to proceed with the signing of the pact.
The partnership will be finalized when European Commission President Ursula von der Leyen and European Council President António Costa visit India as chief guests of the Republic Day celebrations on January 26, followed by a summit with Prime Minister Narendra Modi the next day.
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