- India-EU free trade pact aims to boost defence manufacturing and tech development by 2027
- Negotiations target economic ties, strategic dependency reduction, and investment protection
- Security and Defence Partnership fosters cooperation between defence firms and governments
The proposed India-European Union (EU) free trade agreement could be beneficial for defence manufacturing, technology development and investment alongside trade, EU Ambassador to India Jean-Eric Paquet said on Friday, as both sides aim to conclude negotiations by the end of 2026 and bring the pact into force in 2027.
Speaking at the Society of Indian Defence Manufacturers' (SIDM) Annual Session and Champion Awards 2026 in New Delhi, Paquet said the agreement could strengthen economic ties and help India and Europe reduce strategic dependencies. An Investment Protection Agreement, which is also under negotiation, could further support cross-border investment and supply-chain resilience, he said, according to ANI.
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Defence industry cooperation
Paquet pointed to the Security and Defence Partnership announced in January as a framework for closer engagement between the two sides, including at the ministerial level and between defence manufacturers.
European defence companies already work with Indian counterparts, while more EU member states are exploring partnerships, he said. Europe's push to address defence capability gaps by 2030 has added urgency to these efforts.
Paquet also cited Europe's plan to mobilise €800 billion to strengthen its defence capabilities, as the region continues to support Ukraine and equip its own militaries. He described India as an important partner in meeting Europe's broader security needs.
Maritime security
Maritime cooperation is another priority, particularly in the Red Sea, where disruptions to shipping have highlighted the economic cost of insecurity.
Discussions are under way to improve coordination between the Indian Navy and the EU's Operation Atalanta, including a possible administrative arrangement to facilitate engagement between vessels at sea. Joint patrols could be considered at a later stage, subject to further discussions.
Paquet also called for better sharing of maritime domain awareness data between India and Europe, saying their systems needed to communicate more effectively. He added that security in the Indo-Pacific and Europe was increasingly interconnected, making cooperation on maritime security, defence production and economic resilience more important.
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