New Delhi – Prime Minister Narendra Modi has positioned India as a viable defence manufacturing hub for the European Union, offering what he described as “more bang for the buck” as Europe undergoes a major rearmament drive. This strategic pitch came as India and the EU finalized a comprehensive Security and Defence Partnership on Tuesday, marking a transformative moment in bilateral relations.
Historic Security and Defence Partnership
The Security and Defence Partnership signed by External Affairs Minister S. Jaishankar and EU Foreign and Security Policy Chief Kaja Kallas establishes India as a potential defence manufacturing hub for European security needs. This overarching framework deepens ties in maritime security, defence industry and technology, cyber and hybrid threats, space security, counter-terrorism, and protection of critical infrastructure.
Prime Minister Modi emphasized that establishing India as a defence manufacturing hub aligns with broader strategic cooperation. “Defence and security are a foundation for any strong partnership. Today, we are making this official through a Security and Defence Partnership,” Modi stated during the joint media interaction with EU leaders.
India’s Pitch as Defence Manufacturing Hub
Foreign Secretary Vikram Misri quoted Prime Minister Modi as highlighting India’s position as a viable alternative defence manufacturing hub and development location for Europe. The PM’s emphasis on India providing “more bang for the buck” for initiatives underscores the cost-effectiveness and capabilities that make India an attractive defence manufacturing hub.
This positioning of India as a defence manufacturing hub comes at a crucial time when Europe is launching massive rearmament programs to address geopolitical threats and enhance its strategic autonomy.
European Rearmament and SAFE Programme
The Defence and Security Partnership will enable India as a defence manufacturing hub to potentially benefit from the EU’s 150 billion euro Security Action for Europe (SAFE) programme. This initiative aims to urgently boost Europe’s defence industrial base through joint procurement and financial support, with a third of the outlay available for foreign participation.
As a defence manufacturing hub, India can access opportunities from SAFE, which forms one pillar of Rearm Europe. This broader initiative, launched in March 2025, aims to boost European defence spending and industrial capacity by mobilizing up to 800 billion euros by 2030.
Defence Minister’s Vision for Synergy
Defence Minister Rajnath Singh pitched for synergy between the defence industries of India and the EU, emphasizing how establishing India as a defence manufacturing hub complements New Delhi’s vision of Atmanirbhar Bharat (self-reliant India) and aligns with the EU’s pursuit of strategic autonomy.
Also Read: India EU Trade Deal: Massive Global Economic Shift Transforms Alliances
Singh stated that “the partnership will become a force multiplier by integrating supply chains for building trusted defence ecosystems and future-ready capabilities.” This integration positions India as a defence manufacturing hub within a trusted global defence ecosystem.
Security of Information Agreement
The two sides announced the launch of negotiations on a Security of Information Agreement, described as a “legal enabler” that will complement the Security and Defence Partnership. This agreement acts as a “political enabler” for India’s role as a defence manufacturing hub in sensitive areas such as drones and air defence systems.
The information security pact will prepare the ground for more sensitive cooperation in defence, further solidifying India’s position as a defence manufacturing hub for sophisticated military technologies.
Industry Engagement and Collaboration
The Society of Indian Defence Manufacturers recently made a “very successful visit” to Brussels to meet with European counterparts, demonstrating the growing interest in India as a defence manufacturing hub. This industry-level engagement is crucial for translating the political partnership into concrete business opportunities.
The India-EU Summit endorsed a new five-year comprehensive strategic agenda that includes setting up an industry-led Defence Industry Forum for focused talks on defence industry opportunities, further institutionalizing India’s role as a defence manufacturing hub.
Maritime Security Cooperation
European Commission President Ursula von der Leyen described the partnership as a “trust-based platform” that will expand maritime security cooperation through joint naval exercises against piracy. The EU proposed posting a liaison officer at the Indian Navy’s Information Fusion Centre-Indian Ocean Region in Gurugram, enhancing India’s capabilities as a defence manufacturing hub with operational coordination.
This maritime cooperation is particularly significant as China attempts to strengthen its hold over the Indian Ocean region, making India’s strategic position as a defence manufacturing hub even more valuable to European security interests.
Counter-Terrorism and Hybrid Threats
As a comprehensive defence manufacturing hub, India will enhance cooperation with the EU to counter cross-border terrorism, radicalization, and violent extremism. The partnership will strengthen law enforcement cooperation through arrangements between India’s Central Bureau of Investigation and Europol, including deployment of an Indian liaison officer at Europol’s headquarters.
The two sides will step up exchanges on hybrid threats and develop strategies to counter such challenges, positioning India as a defence manufacturing hub that contributes not only hardware but also intelligence and operational expertise.
Strategic Outlook
Foreign Secretary Misri noted that “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.” India’s emergence as a defence manufacturing hub positions it to capitalize on this European renaissance.
The partnership enables India as a defence manufacturing hub to participate in joint development of military hardware, supporting Europe’s urgent need to enhance its defence capabilities while benefiting from India’s cost-effective manufacturing expertise and growing technological capabilities.
