The European Union and India stand poised to formalise a landmark security and defence partnership, as revealed in a draft document obtained by Reuters. This agreement, scheduled for signing on Tuesday, 27 January 2026, during high-level summits in New Delhi, marks a pivotal shift in bilateral ties.

It emerges against a backdrop of Europe's strategic pivot to lessen reliance on the United States and China, fostering deeper diplomatic and economic bonds with key partners like India.

The draft explicitly outlines consultations between the EU and India on their respective defence initiatives, encompassing exchanges on defence industry matters.

Where mutual interests and aligned security priorities exist, it paves the way for India's potential participation in pertinent EU defence projects, subject to each side's legal frameworks. This provision signals a move beyond traditional buyer-seller dynamics towards collaborative opportunities in defence manufacturing and technology.

European leaders view India as a vital supplier for specific arms, bolstering the EU's military industrial base amid ongoing modernisation drives across member states.

A dedicated EU-India Defence Industry Forum will facilitate business linkages, convening companies from both regions with officials in observer roles to pinpoint cooperative ventures. This industry-led mechanism aims to harness EU expertise in defence research and development alongside India's burgeoning manufacturing capacities.

The partnership extends to an annual high-level dialogue on security and defence, enhancing coordination on maritime security, cybersecurity, and counterterrorism. It underscores the escalating complexity of global threats, geopolitical tensions, and rapid technological evolution, necessitating closer EU-India collaboration. Shared commitments to a free and open Indo-Pacific are likely to feature prominently, aligning with broader strategic outlooks.

This defence accord dovetails with broader economic overtures, including the anticipated announcement of concluded negotiations for a landmark India-EU Free Trade Agreement (FTA). 

Dubbed the 'mother of all deals', the FTA promises tariff reductions on European automobiles and wines, while expanding market access for Indian exports like electronics, textiles, and chemicals. Together, these pacts could link markets serving two billion consumers, amplifying trade, investment, and technological exchanges.

High-profile visits underscore the momentum: European Commission President Ursula von der Leyen and European Council President Antonio Costa arrive as chief guests for India's 77th Republic Day on 26 January 2026.

EU Foreign Policy Chief Kaja Kallas has affirmed readiness to proceed, highlighting expansions in maritime security, counterterrorism, and cyber defence. External Affairs Minister S Jaishankar's recent meetings with EU envoys further emphasise de-risking global supply chains through resilient partnerships.

For India's defence sector, long focused on indigenous manufacturing under initiatives like Make in India, this opens avenues for co-production and joint ventures. European firms could leverage Indian facilities to diversify supply chains, while India gains access to advanced R&D and EU-funded programmes. Sectors such as drones, loitering munitions, and long-range systems—showcased in the Republic Day parade—may see accelerated integration.

Geopolitically, the timing resonates amid transatlantic frictions, including US President Donald Trump's threats of tariffs over Greenland, prompting EU countermeasures. By deepening Indo-Pacific engagement, the EU counters-balance such pressures, while India bolsters its strategic autonomy. The pact aligns with recent India-Germany commitments to military exercises, staff talks, and Track 1.5 dialogues, portending a broader European realignment.

Industry voices, including Bharti Enterprises' Rajan Bharti Mittal, hail the FTA's potential for technology sharing and market unlocking, with defence as a complementary pillar. Apparel exporters anticipate zero-duty access to EU markets, spurring employment, yet defence cooperation promises higher strategic dividends. Piyush Goyal's engagements with EU Trade Commissioner Maros Sefcovic affirm mutual commitment to an ambitious, balanced outcome.

Challenges persist: aligning regulatory frameworks, navigating export controls, and ensuring reciprocity in sensitive technologies. Nonetheless, the partnership positions both as 'great powers' uniting against protectionism, as noted by Germany's Chancellor Friedrich Merz.

With Davos 2026 echoes of principled stances from leaders like Emmanuel Macron and von der Leyen, this deal heralds a resilient EU-India axis for the 2030s.

Based On Reuters Report