A major security and defence pact between India and the European Union has been finalised and stands ready for signing at the forthcoming India-EU Summit in New Delhi on 27 January 2026.

This agreement, announced amid heightened global tensions, seeks to deepen military-industrial cooperation, enhance strategic partnerships, and unlock opportunities for arms trade alongside collaborative projects.

European nations, facing supply chain pressures, are increasingly eyeing India as a key supplier for specific defence equipment, marking a shift in traditional trade dynamics.

The pact emerges at a pivotal moment during Republic Day celebrations, with European Commission President Ursula von der Leyen and a high-level delegation, including EU Foreign Policy Chief Kaja Kallas, in attendance.

Kallas highlighted the deal's focus on expanding ties in maritime security, counterterrorism, and cyber defence, underscoring its role in a broader EU-India strategic agenda through 2030. This initiative coincides with the conclusion of negotiations for a Free Trade Agreement (FTA), further bolstering economic and security interconnections.

Central to the partnership is the establishment of an EU-India Defence Industry Forum, designed to connect companies from both regions and pinpoint collaboration prospects in defence manufacturing. Indian exports to Europe, particularly ammunition and explosives, have surged in recent years as EU states replenish stockpiles amid geopolitical strains.

The forum will foster joint ventures, leveraging EU expertise in research and development to fortify India's defence industrial base while diversifying European supply chains.

For India, the agreement opens doors to participate in the EU's €150 billion Security Action for Europe (SAFE) program, promoting interoperability and enabling Indian firms to bid on defence projects. It also paves the way for a Security of Information Agreement (SOIA) to safeguard sensitive data exchanges in industrial defence cooperation. Operational synergies, such as joint naval exercises involving Indo-Pacific partners, will enhance maritime domain awareness and regional stability.

Europe's interest in sourcing from India reflects India's growing prowess in indigenous manufacturing under initiatives like Make in India, with established suppliers like France, Germany, Spain, and Italy already key partners in India's defence imports.

This reciprocal dynamic strengthens Europe's military posture while supporting India's ambitions for self-reliance in defence production. The pact arrives as both sides navigate challenges like the EU's Carbon Border Adjustment Mechanism (CBAM), yet signals a commitment to overcoming hurdles for mutual benefit.

Beyond hardware, the partnership emphasises soft power domains, including cybersecurity resilience and counterterrorism intelligence sharing. It aligns with the 16th India-EU Summit's agenda, co-chaired by Prime Minister Narendra Modi, to unveil a Joint Comprehensive Strategic Vision for 2026-2030 across security, trade, and innovation.

Additional outcomes may include a mobility memorandum for Indian workers in Europe, rounding out a multifaceted elevation of bilateral relations.

This development positions India as a linchpin in Europe's Indo-Pacific strategy, countering influences from other powers while amplifying New Delhi's global defence footprint.

As signing looms next week, the pact promises not only immediate trade gains but a long-term framework for technological synergy and strategic autonomy. Stakeholders anticipate accelerated deals in niche sectors, heralding a new era of EU-India defence interdependence.

IDN (With Agency Inputs)

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