‘Bang for the buck’: PM Modi pitches India as EU’s defence manufacturing hub

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‘Bang for the buck’: PM Modi pitches India as EU’s defence manufacturing hub
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Why it matters

NEW DELHI: A Security and Defence Partnership finalised by India and the European Union on Tuesday will consolidate ongoing security cooperation and intensify collaboration in new areas such as space.

Key takeaways

  • This move will enhance operational coordination with the Indian Navy for counter-piracy and threat assessment in the Indian Ocean, the defence ministry said.The Defence and Security Partnership and the proposed information security pact will pave the way for Indian defence firms to potentially benefit from the EU’s €150-billion Security Action for Europe (SAFE) programme, which aims to urgently boost Europe’s defence industrial base through joint procurement and financial support.
  • A third of the outlay for SAFE is available for foreign participation, and foreign secretary Vikram Misri said that this will allow Indian defence firms to benefit from opportunities arising from the EU’s defence initiatives.SAFE is one of the pillars of Rearm Europe, launched in March 2025 to boost European defence spending and industrial capacity by mobilising up to €800 billion by 2030.“There is obviously a renaissance of the defence industry and the realisation for defence preparedness in Europe, which means there has to be preparation on the defence industrial front,” Misri said.
  • The EU currently has such agreements with nine countries, including Japan and South Korea in Asia.“Defence and security are a foundation for any strong partnership.

NEW DELHI: A Security and Defence Partnership finalised by India and the European Union (EU) on Tuesday will consolidate ongoing security cooperation and intensify collaboration in new areas such as space security, counter-terrorism, and the joint development of military hardware to support Europe’s rearmament drive to address geopolitical threats.

The Security and Defence Partnership, signed by external affairs minister S Jaishankar and EU foreign and security policy chief Kaja Kallas, was described as an overarching framework to deepen ties in maritime security, defence industry and technology, cyber and hybrid threats, space, counter‑terrorism, protection of critical infrastructure such as undersea cables, non-proliferation and disarmament, and international peace and security. The EU currently has such agreements with nine countries, including Japan and South Korea in Asia.

“Defence and security are a foundation for any strong partnership. Today, we are making this official through a Security and Defence Partnership. This will help us work more closely on counter-terrorism, maritime security and cybersecurity,” Modi said at a joint media interaction with the EU leaders after their summit.

European Commission President Ursula von der Leyen described the partnership as a “trust-based platform” for cooperation on strategic issues that will build the resilience of both sides and expand maritime security cooperation through joint naval exercises against piracy and the countering of sophisticated hybrid threats.

The two sides also announced the launch of negotiations on a Security of Information Agreement, which people familiar with the matter described as a “legal enabler” that will complement the Security and Defence Partnership, acting as a “political enabler” for defence industrial cooperation in sensitive areas such as drones and air defence systems.

At a meeting with Kallas, defence minister Rajnath Singh pitched for synergy between the defence industries of India and the EU, and said such an approach complements New Delhi’s vision of Atmanirbhar Bharat (self-reliant India) and aligns with the 27-member bloc’s pursuit of strategic autonomy.

“The partnership will become a force multiplier by integrating supply chains for building trusted defence ecosystems and future-ready capabilities,” Singh said. Kallas said the partnership will lead to the launch of an annual security and defence dialogue, with the first meeting taking place in a month. “We will also explore Indian participation in European defence initiatives,” she added.

Kallas said India and the EU must work together in the vast Indian Ocean and learn from each other’s best practices through joint exercises. This comes at a time when China is attempting to strengthen its hold over the region, a strategic maritime expanse where challenges include Beijing’s carefully calculated power play for influence and the defence of the rules-based international order.

Singh welcomed the EU’s proposal for posting a liaison officer at the Indian Navy’s Information Fusion Centre-Indian Ocean Region (IFC-IOR) in Gurugram. This move will enhance operational coordination with the Indian Navy for counter-piracy and threat assessment in the Indian Ocean, the defence ministry said.

The Defence and Security Partnership and the proposed information security pact will pave the way for Indian defence firms to potentially benefit from the EU’s €150-billion Security Action for Europe (SAFE) programme, which aims to urgently boost Europe’s defence industrial base through joint procurement and financial support. A third of the outlay for SAFE is available for foreign participation, and foreign secretary Vikram Misri said that this will allow Indian defence firms to benefit from opportunities arising from the EU’s defence initiatives.

SAFE is one of the pillars of Rearm Europe, launched in March 2025 to boost European defence spending and industrial capacity by mobilising up to €800 billion by 2030.

“There is obviously a renaissance of the defence industry and the realisation for defence preparedness in Europe, which means there has to be preparation on the defence industrial front,” Misri said. “We would look over a period of time to be able to take part in these European initiatives [for the] defence industry.”

Misri quoted the PM as saying that India offers a viable alternative as a defence manufacturing and development location, providing the EU “more bang for the buck” for initiatives such as SAFE. He also noted that the Society of Indian Defence Manufacturers recently made a “very successful visit” to Brussels to meet with counterparts, and the information security agreement will prepare the ground for “more sensitive cooperation” in defence.

The India-EU Summit endorsed a new five-year comprehensive strategic agenda that seeks to reinforce defence and security cooperation, including setting up an industry-led Defence Industry Forum for focused talks on defence industry opportunities, and enhancing joint efforts to promote a free, open, peaceful and prosperous Indo-Pacific based on respect for sovereignty, territorial integrity and peaceful resolution of disputes.

In the field of counter-terrorism, the two sides will enhance cooperation to counter cross-border terrorism, radicalisation and violent extremism, combat terror financing, promote globally agreed anti-money laundering standards, and prevent the exploitation of new and emerging technologies for terrorism. They will step up exchanges on hybrid threats and develop strategies to counter such challenges, and strengthen law enforcement cooperation through the working arrangement between India’s Central Bureau of Investigation (CBI) and Europol, including the deployment of an Indian liaison officer at Europol’s headquarters.

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Published: Jan 27, 2026

Read time: 4 min

Category: India