Brussels turns East: EU seeks stronger defence, trade ties with India

In a move to strengthen Europe’s global alliances, the European Commission president and her team made a high-profile visit to India, signaling a shift in strategy as the EU seeks to recalibrate its foreign relationships. 

Bloomberg unveils in a latest article that last week, Ursula von der Leyen, President of the European Commission, along with her fellow commissioners, made a surprise visit to India, aimed at revitalizing and deepening ties between the European Union and the South Asian giant. The friendly atmosphere in New Delhi underscored the EU’s efforts to reassert its global relationships, offering a sharp contrast to the tensions unfolding in Washington. During the visit, von der Leyen and Indian Prime Minister Narendra Modi unveiled a series of initiatives designed to strengthen EU-India cooperation. Among the most significant announcements were a commitment to finalize a free trade agreement by the end of the year and Europe's intention to establish a "defense and security partnership" with India, akin to recent agreements with Japan and South Korea.

This upbeat atmosphere marks a striking shift from just three years ago, when India faced criticism from Europe for not condemning Russia’s invasion of Ukraine. However, it is not India that has changed its stance, but rather European politicians who now see the need to secure the continent’s strategic autonomy by fostering a relationship with an imperfectly committed New Delhi.

Europe faces a tough dilemma in its global position: there is no clear replacement for the United States as a security ally or China as an economic partner. Consequently, Europe’s aspirations may always seem smaller compared to the sacrifices it must make. A prime example is the European Commission’s successful push for a free trade agreement with Mercosur, the Latin American trade bloc, even though its global trade share is smaller than that of India.

European leaders have wisely concluded that they need as many allies as possible — from Japan and South America to India and the Gulf nations — even if these relationships are less than ideal. This strategic shift appears necessary given that many of Europe’s existing trade and security partnerships with these countries have either underperformed or been funneled through the United States.

In the challenging decade ahead, the strengthening of ties with India could prove indispensable for Europe’s security and trade. While India’s economy may not be the most advanced or globally competitive, it remains one of the few nations with a strong industrial base capable of supporting Europe’s efforts to rearm. Indian companies, such as Bharat Forge Ltd., have shown their ability to scale up manufacturing quickly, including in critical areas like artillery shell production. Recently, Bharat Forge announced the export of over 100 155-mm artillery systems in 2024, recalling its ability to produce more than 100,000 shells in a single month during the brief 1999 conflict with Pakistan.

Von der Leyen highlighted India’s interest in joining defence industrial projects under the EU's Permanent Structured Cooperation programme. While India’s domestic defense production is growing, it has not expanded as quickly as South Korea’s. However, with Europe’s defense budgets on the rise, there is optimism that Indian companies could scale up to meet future demand.

While Europe may feel somewhat isolated, particularly after slowly recognizing China as a systemic rival, only to find the United States now viewing itself as a competitor too, the EU’s strategic push to strengthen ties with India is increasingly critical.

Despite its growth potential, India is unlikely to replace China’s role in European supply chains any time soon. While both China and the EU each account for over 15 per cent of global trade, India’s share has stagnated around 2 per cent. While India trades more with the EU than any other country, it ranks only as the EU’s ninth-largest partner and does not hold a prominent position in the European economy.

Nonetheless, Von der Leyen and her colleagues likely understand the importance of keeping countries like India engaged in the rules-based global order that has sustained European prosperity. It's easy for Europe to follow America’s lead and drift away from multilateralism, but even as EU officials arrived in New Delhi, India’s finance minister remarked that multilateralism was “sort of out.”

Although Brussels may not have intended to appear desperate during their visit, in the current global climate, desperation may be a better option than the alternative. Meanwhile, India recognizes it cannot solve all of the EU's issues but understands the urgency for Europe to strengthen as many international relationships as possible. Without these efforts, as evidenced during the Oval Office meeting, Europe risks being left to stand alone.

By Naila Huseynova