Indian Defence Industry: 5 Game-Changing Opportunities to Power Europe’s Security
Europe is facing a growing security crisis as tensions with the U.S. disrupt military cooperation and supply chains. With major European defence manufacturers struggling to meet demand, India’s rapidly expanding defence industry has a unique opportunity to step in. Under the ‘Make in India’ initiative, companies like Tata, L&T, and Bharat Forge have built world-class manufacturing facilities, attracting global players like Saab, Dassault, and Airbus. India’s cost-effective production, surplus manufacturing capacity, and skilled workforce make it an ideal partner for Europe’s defence needs.
From ammunition to aircraft parts and shipbuilding, Indian firms can help bridge Europe’s defence supply gaps. Additionally, the Indian government’s proactive policies and multi-billion-dollar investments in defence infrastructure position the country as a long-term player in global security. With strategic partnerships and timely action, India can establish itself as a key supplier for European defence while boosting its own industry. The challenge now is whether India can seize this moment with aggressive diplomacy and targeted policy measures to transform potential into reality.
Indian Defence Industry: 5 Game-Changing Opportunities to Power Europe’s Security
Europe’s security landscape is undergoing significant changes. Tensions with the United States, particularly during Donald Trump’s presidency, have strained military partnerships and disrupted supply chains. As the U.S. pressures European nations to increase their NATO spending while reducing military aid to Ukraine, the European Union (EU) is compelled to strengthen its own defence capabilities. However, decades of reliance on American military equipment have left Europe’s domestic production struggling to meet urgent demands. This gap presents a major opportunity for India—with its rapidly expanding defence sector—to emerge as a vital partner for Europe.
Europe’s Defence Challenges: A Need for Reliable Partners
The EU is actively pursuing self-reliance in defence through initiatives like the 2022 Strategic Compass, a plan to enhance crisis management, cybersecurity, and military investments. Despite having the financial resources to boost defence spending, Europe’s manufacturing capacity falls short of its requirements. For instance:
- Dassault Aviation, a leading French aerospace company, has over 400 pending aircraft orders but lacks the infrastructure to deliver them swiftly.
- Rheinmetall, Germany’s top arms producer, manufactures only 60,000–70,000 artillery shells annually—a fraction of the 1.1 million shells Europe requires.
- KNDS Group (a merger of France’s Nexter and Germany’s Krauss-Maffei Wegmann) faces a backlog of €15.7 billion as of 2024.
These production bottlenecks highlight Europe’s inability to rapidly scale up its defence output, especially during crises. This is where India’s defence industry, strengthened by its Make in India initiative, can provide much-needed support.
India’s Rise in Defence Manufacturing
Over the past decade, India has emerged as a major hub for defence production, attracting global players through partnerships and investments. Key collaborations include:
- Saab (Sweden) has established a facility in Haryana to produce Carl-Gustaf M4 rocket launchers.
- L&T MBDA, a joint venture with France’s MBDA, manufactures missiles in Coimbatore.
- Tata-Airbus has begun producing C295 military transport aircraft in Vadodara.
- Dassault India is setting up a maintenance hub near Jewar International Airport for Rafale fighter jets.
- Safran (France) develops aircraft engines in Hyderabad.
These projects showcase India’s growing expertise in aerospace, missile systems, and naval technology. With surplus production capacity and competitive costs, India is well-positioned to supply Europe with critical defence components, including ammunition, aircraft parts, and naval vessels.
Why India Stands Out
Several factors make India an ideal partner for Europe’s defence needs:
- Affordability – India’s lower labor and production costs enable it to offer cost-effective solutions compared to European manufacturers.
- Scalability – Indian factories have the capacity to rapidly increase output to meet urgent demands, such as artillery shells and vehicle parts.
- Skilled Workforce – A large pool of highly trained engineers and technicians supports advanced manufacturing and innovation.
- Government Support – New Delhi is investing heavily in defence infrastructure, including a $28 billion Maritime Development Fund to modernize shipbuilding.
Seizing the Moment: What India Must Do
While Europe prioritizes local production for long-term security, its immediate needs require external support. India can position itself as a reliable supplier by:
- Strengthening Diplomacy – Engaging with EU nations through targeted trade agreements and joint ventures.
- Offering Incentives – Creating a favorable policy environment for European firms to set up manufacturing units in India.
- Focusing on Quality – Ensuring Indian-made defence equipment meets global standards to build trust and long-term relationships.
A coordinated effort led by the Prime Minister’s Office (PMO) could streamline these strategies, ensuring that India becomes a cornerstone of Europe’s defence supply chain.
Conclusion
Europe’s pursuit of security independence presents a strategic opportunity for India. By leveraging its strong manufacturing base and fostering partnerships, India can help Europe bridge its defence supply gaps while cementing its own place in the global arms industry. This collaboration would not only strengthen Europe’s military readiness but also position India as a key player in international defence markets. The time to act is now—with vision and agility, India can transform this opportunity into a lasting advantage.