Opinion Why India should bet big on defence partnership with EU

While calling upon EU member states to strengthen collective defence, engage in joint defence procurements, promote the defence-industrial complex and streamline military logistics, the WP identifies seven priority areas: Air and missile defence, artillery systems, ammunition and missiles, including stockpiles of ammunition, missiles and components, drones and counter-drone systems, military mobility, AI, quantum, cyber and electronic warfare, and strategic enablers and critical infrastructure protection.
Beyond the EU member states, the WP underscores the need to explore defence-industrial cooperation with Indo-Pacific partners such as Japan, the Republic of Korea (ROK), Australia, and New Zealand. More importantly, it calls for further exploring a “Security and Defence Partnership” (SDP) with India.

Challenges outlined in the paper cover terrorism and violent extremism, hybrid attacks, the actions of international organised crime groups, and networks of cybercriminals. The security of supply chains for critical raw materials is part of the spectrum of concerns, alongside transnational challenges such as rapid technological change, migration, and climate change. China is clearly identified as an authoritarian state seeking to assert its authority and control in Europe’s economy and society.
The priority areas identified by the WP present an opportunity for Indian defence industries to acquire or establish start-ups and SMEs (small and medium-sized enterprises) in Europe.

In the short term, the emphasis in the WP is on urgently replenishing the stocks of ammunition, weapons, and military equipment of member states. This may provide an opportunity for India to export to Europe Made in India ammunition, which is rapidly emerging as a success story of India’s atmanirbharta in defence manufacturing and exports. Efforts should also be made to explore sales of competitive defence equipment such as the Advanced Towed Artillery Guns (ATAGs), the Pinaka Multi-Barrel Rocket Launcher, and air defence missiles and radars meeting NATO standards.

India’s total defence exports for FY 2024-25 reached a record Rs 23,622 crore (approximately $2.76 billion). Clearly, a foundation has been laid for a higher quantum of sales in the future.

Presently, India does not export arms and ammunition to Ukraine because of its neutral posture in the latter’s ongoing conflict against Russia. Europeans using Indian-origin defence items against Russia in the future is akin to China or Pakistan using Russian defence equipment against India.

The focus in the WP on critical and foundational technologies (AI, quantum, bio, and hypersonic) and their classification as dual-use with both economic and military implications offers India scope for collaboration with EU member states. Sharing the EU’s military mobility corridors, space assets, and services with Ukraine is seen as integral to the latter’s defence.

Cooperation with Ukraine is regarded as a two-way process in which the EU, while helping strengthen Ukraine’s defence, would seek to benefit from the latter’s “highly innovative and thriving defence industry,” especially in sectors such as AI and drones.
The key lies in Indian companies being embedded early in the evolving defence ecosystem of the EU and Ukraine, during the process of their internal integration and the harmonisation of the regulatory framework.

As the EU moves to higher levels of excellence in innovation and R&D, India should explore opportunities for acquisitions and joint research in defence technologies. India should closely study the evolving EU model and adopt the best practices to improve its own roadmap for atmanirbharta in aerial mobility, particularly the development of domestic civil transport aircraft manufacturing and maintenance, repair, and overhaul (MRO) hubs.

The EU’s Defence Omnibus Package offers India a chance to collaborate and engage the EU in the cross-certification of defence products to create the basis for a future market. There could be fresh opportunities for cooperation in space and cybersecurity. Job opportunities for skilled human resources from India might also increase. India should also engage on migration and mobility issues in the context of the ongoing FTA negotiations.

The EU’s harmonisation of rules and procedures for defence procurement could lead to some changes in export regulations. Major European producers of defence equipment could find their capacities committed to national needs for the “ReArm Europe” plan. India would have to examine the impact, if any, on its supply chains emanating from Europe.
India could explore the possibility of joining the EU Defence Innovation Scheme (EUDIS), drawing from its experience in initiatives such as INDUS-X with the US. Engineering, procurement, and construction (EPC) companies from India should explore the potential for securing contracts for the expansion of EU multimodal corridors, including ports and terminals.

The emergence of the EU “Defence Union” will mark a scaling up of all existing European defence and security structures. Rapidly rearming Europe is seen as a way to secure its future against the strategic threat posed by Russia, reasserting Europe’s strategic autonomy in securing itself and Ukraine, along with strengthening the EU’s defence contributions to the trans-Atlantic partnership. As an aspiring global power and strategically autonomous pole, India should bet big on this partnership.

The writer is the Director General of the Manohar Parrikar Institute for Defence Studies and Analyses; views expressed are personal