By Maj Gen (Dr) Rambir Singh Mann (Retd)
1. India’s defense industry is well-positioned to capitalize on Europe’s rearming drive, fueled by the U.S. withdrawal and the EU’s urgent need to bolster its military capabilities. With Europe’s arms industry struggling to scale rapidly and the “ReArm Europe” initiative (up to €800 billion in spending) opening avenues for external partnerships, India can leverage its growing defense manufacturing base, cost-competitive offerings, and strategic alignment with Western interests.
2. Some key areas that Indian defense industries can exploit are :
a) Artillery and Ammunition. Europe’s ammunition shortfall projected at 2 million rounds annually by late 2025, cannot fully meet Ukraine’s and NATO’s needs. India’s expertise in artillery systems and munitions aligns with this gap. Companies like Bharat Forge (ATAGS howitzer), Munitions India Limited (155mm shells), and Tata Advanced Systems (rocket systems) offer proven, cost-effective solutions. Pitch ATAGS and 155mm shells to Poland, Romania, and the Baltics, which are stockpiling against Russia. Highlight India’s ability to deliver faster than Europe’s nascent factories (e.g., Rheinmetall’s 2026 timeline) and also bundle Offset Deals alongwith co-production offers alongwith exploiting the pricing edge India enjoys U.S. and European prices.
b) Missile Systems. Europe’s reliance on U.S. Patriot systems and limited domestic missile production creates demand for alternatives, especially under the European Sky Shield Initiative. The BrahMos supersonic cruise missile (Indo-Russian JV) and DRDO’s Akash air defense system offer battle-tested, affordable options. BrahMos can be pitched to Greece, Romania, or Baltic states as a naval and coastal defense solution against Russia and joint production can be explored with firms like MBDA or Thales to access EDIP funds. Similarly Akash can be pitched to smaller NATO nations (e.g., Slovakia, Bulgaria) seeking cost-effective air defense over the Patriot system.
c) Drones and Unmanned Systems. Europe’s drone deficit offers a niche for India’s emerging unmanned tech. Indian Firms like IdeaForge (Switch UAV), Adani Defence (Drishti 10), and HAL (combat drones) provide scalable, affordable platforms can be pitched to Nordic and Baltic nations for ISR (intelligence, surveillance, reconnaissance) roles.
d) Cybersecurity and Defense Electronics. Europe’s lag in cyber defenses and reliance on U.S. tech creates space for India’s IT prowess to fill gaps in secure comms and electronic warfare. Tata Advanced Systems (cyber solutions), BEL (radars, EW systems), and private players like Data Patterns (avionics) align with Europe’s needs.
3. Strategies to Maximize Impact. An urgent policy review is needed to capitalise on the opportunity before nations like China, Israel, South Korea or Turkey step in. India’s “Make in India” and export promotion schemes to subsidize initial deals so as to ensure competitiveness, needs further push. Indian embassies in Europe (especially Poland, Germany, France) should facilitate MoD-to-MoD talks, aligning with EU-NATO priorities. We should also build Strategic Partnerships and propose co-production with European giants (e.g., Airbus, Rheinmetall) to bypass EU protectionism and access the EDIP’s €1.5 billion fund. Offsets can also be explored to offer technology transfers or local jobs in exchange for contracts, a key hook for offset-heavy nations like Poland. There is also a need to highlight India’s 30-50% cost advantage over U.S./European systems (e.g., Akash vs. Patriot, ATAGS vs PzH 2000).
4. India’s defense industry can exploit Europe’s rearming by focusing on artillery, missiles, drones and cyber using cost, speed, and partnerships to carve a €10 billion+ niche in this shifting market. We need to recognise this opportunity and work collectively to take our defence industry to new heights. Government policy reviews at the highest level to enable this and dynamism amongst our Industrial Captains is the need of the hour.
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