Strategic Convergence and Defence Industrial Cooperation Between Indian and EU
June 16, 2025

Context:

  • The European Commission’s Joint White Paper (WP) on European Defence Readiness 2030 outlines a comprehensive plan to enhance the EU’s collective defence posture amidst the ongoing Russia-Ukraine war and changing dynamics within the trans-Atlantic security architecture.
  • While reaffirming its commitments to NATO and the US, the EU emphasizes strategic autonomy, industrial cooperation, and technological leadership—opening new avenues for India-EU defence collaboration.
  • The recent visit of the Indian PM to Cyprus and Croatia and earlier visits by the External Affairs Minister to France, Belgium, Germany, etc., highlights rapidly evolving bilateral relations anchored in the India-EU strategic partnership.

Key Highlights of the White Paper:

  • Strategic objectives and defence spending:
    • The EU aims to achieve full defence readiness by 2030.
    • Proposes 1.5% of GDP as additional defence spending; which is projected to touch €800 billion over four years.
    • Reinforces trans-Atlantic ties with the US and NATO while retaining the UK as a key ally.
  • Seven priority areas for investment:
    • Air and missile defence
    • Artillery systems
    • Ammunition and missile stockpiles
    • Drones and counter-drone systems
    • Military mobility
    • Advanced technologies: AI, quantum, cyber, and electronic warfare
    • Strategic enablers and critical infrastructure protection

Global Outreach and Strategic Partnerships:

  • Indo-Pacific partnerships:
    • The WP calls for defence-industrial cooperation with countries like Japan, South Korea, Australia, and New Zealand.
    • Proposes exploring a Security and Defence Partnership (SDP) with India—marking a significant strategic outreach.
  • Challenges addressed in the WP:
    • Terrorism, hybrid warfare, cybercrime, organised crime.
    • Disruptions in critical raw material supply chains.
    • Transnational issues like migration, technological disruption, and climate change.
    • China is identified as an authoritarian actor exerting influence in Europe’s economy and society.

Opportunities for India:

  • Export of defence equipment:
    • India’s defence exports in FY 2024-25 hit ₹23,622 crore (~$2.76 billion).
    • Short-term WP focus on replenishing ammunition and weapons creates scope for Made-in-India defence exports like:
      • ATAGs (Advanced Towed Artillery Guns)
      • Pinaka Rocket Launcher
      • Air defence systems, radars conforming to NATO standards
    • A key consideration: India maintains neutrality in the Russia-Ukraine conflict, hence doesn’t export to Ukraine.
  • Collaborative R&D and innovation:
    • India can participate in joint R&D on AI, quantum, hypersonic and biotech, identified as dual-use technologies.
    • Opportunities for acquisition and integration of startups and SMEs (small and medium-sized enterprises) in the European defence ecosystem.
    • Potential to join EU Defence Innovation Scheme (EUDIS) based on experience from INDUS-X with the US.
  • Strategic and regulatory engagement:
    • India's entry into the evolving EU ecosystem requires early integration with regulatory frameworks.
    • The EU's move towards defence procurement harmonisation may affect India’s supply chains and export norms.
    • India must explore cross-certification of defence products to tap into a future EU common defence market.

Broader Engagement Prospects:

  • Space and cybersecurity: The EU's growing focus on military use of space and cyber technologies presents collaboration opportunities for Indian industries.
  • Multimodal infrastructure & mobility: Indian EPC (Engineering, Procurement, Construction) firms could secure contracts in EU infrastructure expansion, especially in ports and military mobility corridors.
  • Migration, mobility & skilling:
    • Potential increase in job opportunities for Indian professionals.
    • India should engage the EU in migration and mobility frameworks, especially within the context of FTA

Strategic Significance for India:

  • The emerging EU Defence Union will significantly enhance European strategic autonomy and reinforce the trans-Atlantic alliance.
  • For India, this is an opportunity to:
    • Strengthen defence exports
    • Build strategic partnerships
    • Advance atmanirbharta (self-reliance) in defence manufacturing
    • Align with global innovation standards in aerospace and military tech
  • India should proactively position itself as a key security partner and strategically autonomous actor in the emerging Euro-Atlantic security landscape.

Conclusion:

  • The EU's Defence Readiness 2030 represents both a shift towards strategic autonomy and a reaffirmation of collective defence in a turbulent world order.
  • For India, it offers a historic opportunity to deepen defence, technological, and industrial engagement with the EU, thereby enhancing its own strategic footprint and achieving greater self-reliance in defence.

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