India, Belgium to step up cooperation in defence, law enforcement, semiconductors

Prime Minister Narendra Modi and his Belgian counterpart, Bart De Wever, on Thursday agreed to bolster cooperation in defence, advanced technology and law enforcement and set a target of doubling bilateral trade in five years, as defence firms from the two countries concluded co-production agreements for a wide range of military equipment.Modi and De Wever discussed defence, semiconductors, clean energy and supply chains, while India and Belgium agreed to deepen economic cooperation. (ANI)Modi and De Wever, the first Belgian prime minister to visit India in two decades, reviewed bilateral ties and held focused discussions on collaboration in semiconductors, chemicals, pharmaceuticals, fintech, advanced manufacturing, ports and logistics, and clean energy.The creation of resilient supply chains to reduce dependency on China and more predictable trade arrangements, including leveraging the proposed India-European Union (EU) free trade agreement, against the backdrop of geo-economic turmoil unleashed by US trade policies and tariffs, also figured in the discussions between the two leaders.Modi noted at a joint different media interaction that food, fuel and supply chains have been impacted by uncertainty because of conflicts in parts of the world, and said democratic values and the market economy make India and Belgium natural partners. He also highlighted new opportunities presented by India’s economy in this challenging environment.“Defence and security cooperation is a key pillar of our relationship. Today, we agreed to enhance military exchanges and training cooperation between the two countries,” Modi said.“The agreements between our governments and defence industries will open up new opportunities for defence co-development and co-production. We will also strengthen intelligence-sharing and cooperation between our agencies in combating crime.”Besides establishing an Investment Fast-Track Mechanism for Belgian companies, making the India-Belgium Business Forum a regular mechanism and strengthening coordination among the financial, fintech and regulatory institutions of both countries, India and Belgium have set a target of doubling bilateral trade over the next five years, Modi said.Two-way trade is currently worth about $13 billion, with diamonds accounting for almost 30% of the total figure.“Belgium’s expertise in semiconductors and India’s scale are complementary to each other. In this direction, we will work together to connect Belgium’s IMEC Institute with India’s semiconductor ecosystem,” Modi said. The two sides will soon conclude a migration and mobility partnership agreement, he said.De Wever described India as an increasingly important partner in a turbulent world and said Belgium, one of the most internationally connected economies, can serve as India’s gateway to European markets. “We live in a more fragmented and uncertain world, prosperity and security increasingly go hand-in-hand,” he said.The Letter of Intent on Defence Cooperation finalised by the two sides provides a new framework for everything ranging from military exchanges to research, co-development and co-production of defence hardware, De Wever said. India and Belgium can be partners for the security of economies and supply chains, energy security, cybersecurity and maritime security, even as they address the disruption and weaponisation of supply chains and excessive dependencies, he said.De Wever spoke at greater length about dependencies created by China and the turmoil unleashed by the trade policies of the US administration at a subsequent business event organised by the Confederation of Indian Industry (CII).“These are turbulent times, our world seems ever more divided into great blocs, raising barriers between one another. For them, geopolitics seems like a zero sum game, tariffs can be imposed from one day to the next by anyone on anyone and anything, for reasons that have nothing to do with economics at all,” he said, in an apparent reference to the US.De Wever also noted that India had warned about dependencies long before Europe experienced a “rude awakening”, its industrial base undermined and over-capacity dumped as low-cost goods. “The country that has profited the most from that practice does not lie very far from here, it’s a neighbour you all know,” he said in an obvious reference to China.Besides the Letter of Intent on Defence Cooperation, a memorandum of understanding (MoU) between the Belgian Security and Defence Industry (BDSI) and Society of Indian Defence Manufacturers (SIDM) will facilitate the co-development and co-production of military equipment. India also announced that it will post a resident defence attaché at its embassy in Brussels.Another MoU between India’s Central Bureau of Investigation and the Belgium Federal Police will facilitate cooperation in combating transnational organised crime and cybercrime. This MoU will cover information-sharing and cooperation in tracing fugitives. Two other MoUs will facilitate cooperation in renewable energy and diplomatic training, and the two sides also agreed to establish a consular dialogue.A defence delegation led by Belgian defence and foreign trade minister Theo Francken, which accompanied De Wever, held separate meetings with representatives of India’s defence industry and concluded eight agreements for the joint production of a wide range of equipment, including transfer of technology.“India is a major military power in the Indo-Pacific. The country is also strategically located along some of the world’s most important trade routes.For an open trading nation like Belgium, the security of these sea lanes is vital,” Francken said. “China is becoming increasingly assertive in the Indo-Pacific…Our security does not stop at our borders. That is why we need to work more closely with strong partners such as India.”An agreement between Belgium’s New Lachaussée and India’s Tembo Classic Engineering will see the supply of a production line for two ammunition calibres and tooling for two additional calibres. The installation will have a production capacity of 100 million rounds a year, and the project is worth €50 million.Exail Belgium will supply autonomous toolboxes used to detect, identify and neutralise naval mines for Larsen & Toubro’s project to build mine countermeasure vessels. The first phase covers 12 vessels, though the programme could expand to as many as 59.Thales Belgium and Kalyani Strategic Systems are tying up to assemble 70mm rockets in India, with Indian suppliers participating in the production process. The first rocket produced entirely in India is expected in early 2027, and Thales is expected to gain an additional source of supply for its international orders.Belgium’s FN Herstal and Kalyani Strategic Systems are also exploring the establishment of a joint production centre in India to manufacture FN weapons, integrated weapon systems and counter-drone systems.Flemish drone manufacturer Sol.One is working with India’s DGVK Enterprises to introduce its Saboteur drone and its Buzzkill and Hitchhiker interceptors to the Indian market. India’s armed forces have requested information and want to test the systems.Belgium’s OIP Sensor Systems is cooperating with state-run India Optel Limited on electro-optical systems for the Arjun main battle tank. OIP has supplied more than 130 sights for the Arjun MK I. For Arjun MK II, the company developed a new fire control system that can also launch laser-guided missiles.Belgium’s John Cockerill Defense is a candidate to supply the turret for the Zorawar, the light tank India is developing for high-altitude operations, while Octave, a specialist in visualisation software, is working with Bharat Electronics. Octave’s technology is already operating in several Indian air defence programmes, including Akash Teer.A joint statement issued after the talks said De Wever conveyed Belgium’s solidarity with India in the fight against terrorism, including cross-border terror. He again condemned the terror attack in Pahalgam in April 2025, and both leaders agreed that the world community must act together against terrorists, including those designated by the UN Security Council, terrorist networks, their safe havens and financing.Modi and De Wever also discussed recent developments in Ukraine and West Asia. In the context of Ukraine, both sides backed efforts for a comprehensive, just and lasting peace through dialogue and diplomacy, the joint statement said. On West Asia, they discussed developments of concern and emphasised the importance of dialogue and diplomatic engagement to address challenges in a peaceful manner.De Wever also said he looked forward to welcoming Modi in Brussels in December for the signing of the India-EU free trade agreement.