India Positions Itself as Industrial Partner in Europe’s Defense Expansion

India is expanding its role in the European defense industrial ecosystem as EU member states increase military spending and seek new manufacturing partnerships to strengthen supply chain resilience.

The development follows the launch of the India-EU Security and Defence Partnership earlier this year, which established a framework for deeper cooperation in defense manufacturing, technology integration, and industrial collaboration. According to industry and government statements cited in recent reporting, the initiative reflects Europe’s growing interest in diversifying production networks while supporting long-term procurement programs.

European governments are currently pursuing large-scale modernization plans under the EU’s broader rearmament and readiness agenda. While funding commitments have increased, several European defense industries continue to face production bottlenecks, workforce shortages, and supply chain constraints.

India is positioning itself as a complementary manufacturing base capable of supporting aerospace, naval, and land systems programs through co-production arrangements and component supply.

Several ongoing programs illustrate this trend. In the aerospace sector, Tata Advanced Systems and Airbus are producing C-295 military transport aircraft in India through a manufacturing program centered in Gujarat. The project is considered one of the most significant examples of military aircraft production involving a European OEM and an Indian industrial partner.

In the naval domain, Germany’s ThyssenKrupp Marine Systems has partnered with Mazagon Dock Shipbuilders for a proposed submarine construction program linked to the Indian Navy’s Project 75I requirements. The program is expected to include technology transfer and local industrial participation.

France has also expanded industrial cooperation with India beyond fighter aircraft procurement. Safran has indicated plans to establish engine-related production capabilities in India linked to Rafale fighter support and future aerospace manufacturing requirements. The company is also expected to increase sourcing from Indian suppliers.

The emerging industrial relationship reflects a broader shift in European procurement thinking. EU officials have recently indicated that future defense sourcing may increasingly involve trusted external industrial partners capable of supporting production scalability and long-term sustainment.

At the same time, India continues to expand its domestic defense manufacturing sector under the Make in India policy framework. Official figures show Indian defense exports reached record levels in FY25, while the majority of new defense procurement contracts were awarded to domestic industry.

Indian authorities have set long-term targets to increase defense exports and overall production capacity before the end of the decade. The country’s defense budget has also continued to rise, supporting investments in aerospace, naval systems, missile production, and industrial infrastructure.

For European manufacturers, cooperation with India offers access to lower-cost industrial capacity and engineering talent at a time when demand for military equipment is rising across NATO and EU markets. For India, the partnerships provide opportunities for technology transfer, export growth, and integration into global defense supply chains.

The evolving relationship is expected to shape future procurement and industrial strategies across both regions, particularly in aerospace manufacturing, naval construction, propulsion systems, and sustainment support.