India-Belgium Relations: Trade, Defence & Strategic Partnership

GS II: Bilateral, regional, and global groupings and agreements involving India and/or affecting India’s interests.

Context: The Belgian Prime Minister’s visit to India highlights the growing importance of India’s engagement with Europe, particularly in trade, defence, strategic autonomy and economic diversification, ahead of the expected India–EU Free Trade Agreement.

Strengthening Economic Partnership

• Bilateral trade: India-Belgium trade stands at around $13 billion, with nearly one-third linked to the diamond industry.
• Diamond value chain: Antwerp is a global diamond-trading hub, while Mumbai and Surat are major centres for cutting and polishing.
• Post-FTA opportunities: The India–EU FTA could expand cooperation beyond diamonds into renewable energy and food processing.
• Trade target: Both sides aim to double bilateral trade within five years.

Expanding Defence Cooperation

• Belgian defence industry: Belgium has capabilities in small arms, drones, counter-drone systems, ammunition and naval defence.
• Indian diversification: India seeks to diversify defence procurement beyond traditional major suppliers and develop multiple technology partnerships.
• Co-development: Both countries agreed on an MoU for co-development of military hardware and signed a Letter of Intent on defence cooperation.
• Institutional mechanism: India will appoint a resident Defence Attaché in Brussels, complementing Belgium’s similar move.

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India–EU Strategic Convergence

• Strategic autonomy: Belgium increasingly recognises India’s concerns regarding overdependence on global powers, particularly China, in trade and industrial production.
• Shared values: Democratic values, market economy and people-to-people ties provide a foundation for deeper India-Belgium relations.
• European outreach: Belgium’s engagement forms part of India’s broader effort to strengthen relations with European countries.
• Economic resilience: Cooperation can support India and Europe in building diversified and resilient supply chains.

Geopolitical Significance

• Beyond bilateralism: The visit reflects a broader India-Europe strategic partnership, extending beyond trade and defence.
• Russia factor: Belgium’s engagement comes alongside India’s continued strategic partnership with Russia, including high-level engagement with Moscow.
• Ukraine conflict: India and European countries maintain different positions on the Russia-Ukraine conflict, but bilateral engagement continues despite these differences.
• Strategic maturity: Sustaining partnerships despite geopolitical divergences demonstrates growing strategic maturity and diplomatic pragmatism.

Opportunities for India

• Technology access: Defence cooperation can facilitate access to advanced European defence technologies.
• Market diversification: Stronger Belgium and EU ties can reduce excessive dependence on individual markets and supply chains.
• Investment: Cooperation in renewable energy, food processing and advanced manufacturing can attract European investment.
• FTA multiplier: The India–EU FTA can provide a broader institutional framework for expanding trade, investment and value-chain integration.

Way Forward

• Conclude the India–EU FTA: Use the agreement to expand market access, investment and technology partnerships.
• Deepen defence co-development: Move from defence purchases towards joint R&D, manufacturing and technology transfer.
• Diversify economic ties: Expand beyond diamonds into renewable energy, food processing, advanced manufacturing and emerging technologies.
• Strengthen strategic autonomy: Build partnerships with Europe while maintaining issue-based engagement with Russia, China and other major powers.
• Institutionalise engagement: Strengthen diplomatic, defence and business-to-business mechanisms for sustained cooperation.

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Conclusion

India-Belgium ties reflect a growing India-Europe strategic convergence, with trade, defence and technology cooperation strengthening India’s strategic autonomy and economic resilience. 

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