The recent strategic convergence between India and the European Union (EU), alongside the steady deepening of India–Germany ties, reflects recalibration amid disruption in the global order. As Germany deepens its Indo-Pacific engagement and India expands its European outreach, this evolving alignment has implications for the strategic and security architecture in both regions. The recent Free Trade Agreement (FTA) is a major milestone and a stepping stone to this expanding partnership.

The discussion focused on what these shifts mean for India, Germany, and the EU at large. It analyzed how both sides can convert these challenges to advance their mutual strategic and economic interests, while preserving the rules-based international order and focusing on institutional resilience and global governance.

Carnegie India hosted Konrad-Adenauer-Stiftung for a private roundtable discussion on “India and Europe’s Emerging Alignment: Navigating Geopolitical Disruptions.” The discussion was moderated by Tejas Bharadwaj.

DISCUSSION HIGHLIGHTS

Europe’s Strategic Reset and India’s Growing Role: The discussion began by emphasizing serious disruptions in the global order across various domains, including security, energy, and trade, forcing countries in Europe to rethink their strategic priorities. Earlier, Europe’s governance model was based on security guarantees from the United States, energy supply from Russia, and trade interdependence with China. However, an erosion of these pillars has compelled Europe to diversify its partnerships, particularly with India. New Delhi’s diplomatic flexibility, demographic strength, and growing economic and technological developments make it a balancing power in a multipolar world. Participants noted how a lack of tangible outcomes between both partners in nearly two decades saw a major shift in 2025, leading to the signing of the FTA and a Security and Defense Partnership between India and the EU in January 2026. Additionally, the rise of Indian students in Europe and the strengthening of people-to-people ties were seen as indicators of a sustainable relationship. Participants appreciated that the discourse of the relationship has moved beyond talks of general cooperation to an operational partnership that includes trade, technology, political engagement, and security cooperation.

Defense and Security Cooperation: Considering recent geopolitical conflicts and developments, participants discussed a significant shift in Europe’s defense posture, which is increasingly focused on the need for operational readiness, scalability, and cost-effective systems. India, with its expanding industrial base, cost advantages, and focus on indigenous manufacturing, is increasingly seen as a potential partner in co-production and supply chain diversification. However, the discussion highlighted multiple structural constraints. First, technology transfer remains a central issue, as European actors prioritize balancing commercial interests, regulatory frameworks, and security concerns. Second, the trust deficit between parties requires informed, detailed, and difficult discussions across the board. India’s defense relationship with Russia continues to worry European counterparts. However, participants acknowledged that New Delhi’s dependence on Moscow is based on historical and operational requirements. Third, defense cooperation is contextual and driven by specific platform requirements, national security considerations, and bilateral rather than multilateral frameworks. The template for India-EU bilateral defense relations should be driven by specific needs and requirements, rather than the overall structure of the relationship. Cooperation in cybersecurity and countering disinformation, and maritime security, for instance, were identified as emerging priority areas for both sides as they have shared concerns. However, deepening the relationship to co-production and industrial collaboration will require a deliberate and sustained effort, along with mutual trust.

Economic Cooperation: The India-EU FTA presents an opportunity for diversification in both regions by addressing tariff and non-tariff barriers, improving market access, and creating a more inclusive business environment. It is a crucial step to bridge gaps in global supply chain disruptions and to reduce overdependence on China for critical minerals, components, and manufacturing. The discussion also highlighted other economic ties between India and Europe with the establishment of medium-sized German companies and their increasing presence in the Indian states of Maharashtra, Gujarat, Karnataka, and Tamil Nadu. Despite this recent momentum, participants drew attention to a range of structural and operational hurdles that complicate bilateral cooperation. European companies continue to face various regulatory complexities, non-tariff barriers, and administrative challenges that are not sufficiently addressed. On the other hand, Europe remains heavily integrated with Chinese supply chains and shifting production involves high costs, risks, and long-term planning, requiring a sustained effort. Beyond trade, participants also explored new and emerging areas of cooperation, such as digital governance, green technologies, and critical infrastructure. Concludingly, participants emphasized the need to move beyond reactive policymaking, such as responding to crises in supply chains or critical minerals and instead adopting a forward-looking approach that anticipates future disruptions.

This summary was prepared by Mugdha Satpute, research assistant, and Serene Joshua, young ambassador, with the Security Studies Program at Carnegie India.