THE recently signed defence pact between India and the European Union (EU) marks a significant shift in India’s role from merely a buyer or lowend supplier to a more integrated industrial partner within European defence supply chains.
“This transition relies on India’s swift entry into key agreements that support the EU’s security cooperation and capability development,” said Business Standard in a piece soon after the signing of the IndiaEU trade agreement. It was referring to the India-EU Security and Defence Partnership (SDP) described as “first-of-its-kind” and “overarching”, aiming to create new opportunities for Indian firms in co-development and co-production within European defence programmes, which was signed in sync with the ‘mother of all Free Trade Agreements’’ on January 27.
ReArm Europe
As a result of this agreement, India can pursue defence initiatives in Europe, such as the SAFE (Security Action for Europe) program, a 150-billion Euro fund aimed at enhancing defence readiness. What this, in turn, will do is connect the defence heavyweights in India with the ‘ReArm Europe’ network of arms manufacturers on the mainland and help establish a beachhead for India as a competitive centre for manufacturing and aerostructures.
The ‘ReArm Europe’ initiative (also known as Readiness 2030) is a critical homeland security project of the EU aimed at beefing up EU defence capabilities and a stated goal of attracting up to 800 billion Euros in investments by 2030. The initiative underlines joint procurement, increased national defence expenditures, and the renewal of the European defence sector. A key component of this matrix is collaboration with stable partners, with India at the top of the list. Speaking at the inaugural India-EU Forum 2026, Greek Defence Minister Nikos Dendias was quoted by The Times of India as saying, “India has become an indispensable partner for Europe, maybe in the past; India was a nice-to-have but not a necessary-to-have. Now India is necessary-to-have.”
Indispensable India
One reason India is increasingly indispensable is not just that Europe is wary of China, but also that European defence order books are overflowing with orders post-Ukraine war, and domestic capacities are under strain. As a result, India is emerging as a critical Tier-2 manufacturing partner and getting connected through the ReArm initiative.
What this will do over time is provide Indian defence companies with unprecedented access to joint research via the EU Defence Innovation Scheme (EUDIS), with key areas of cooperation including high-tech frontiers such as AI-driven command systems, hypersonics, and long-range precision munitions. Also, by aligning with ReArm’s technical standards, Indian systems such as the Pinaka rocket launcher and ATAGS artillery will achieve ‘NATO-compatible’ status, helping them gain a significant foothold in exports to European and allied nations.
Similarly, the American ITAR (International Traffic in Arms Regulations) served as a barrier to significant technology trans-fer to India. ITAR treated sensitive technology – jet engine, advanced sensors – as ‘no go’ elements that India could use but never study or modify. However, last year, the US designated India as a ‘Major Defence Partner’. It helped create what can euphemistically be described as an “ITARlite” pathway that enables co-production of GE F414 engines and Javelin missiles with genuine technology transfer, not just sales.
India is emerging as a critical Tier-2 manufacturing partner and getting connected through the ReArm initiative
A trusted system
The TRUST (Transforming Relationship Utilising Strategic Technology) initiative, which succeeded the earlier iCET (initiative on Critical and Emerging Technology), is a huge help. While ITAR governs how much and when tech can be moved, TRUST governs what can be collaborated and built together.
So there you have it! What TRUST does is it ‘de-risks’ from China by helping create a trusted system where US and Indian companies can collaborate, co-develop semiconductors and AI-driven command systems that are compatible and secure. Going one step further, TRUST backs ADITI (Acing Development of Innovative Technologies with iDEX) projects, which help advance India’s R&D in quantum computing and spacebased defence. For the unversed, IDEX is Innovations for Defence Excellence! Increasingly, these are terms one will hear more often. So remember them: SAFE, ReARM, EUDIS, ITAR, TRUST and IDEX!
