What moves on this corridor.
India exports → EU
Growing rapidly — aero-engine components (HAL, Safran India JV); airframe structural parts (Tata Advanced Systems — Airbus A320, Boeing 737 components); helicopter components; military vehicles (Tata Motors, BEML); electronics sub-systems (BEL); small arms (not commercial); space components (ISRO commercial launches, New Space India Ltd); satellite sub-systems
Top India states: Karnataka (HAL — Bangalore; BEL — Bangalore/Machilipatnam), Maharashtra (Tata Advanced Systems — Nagpur; L&T Defence — Mumbai), Telangana (DRDO Hyderabad; BDL missiles; DRDL), Uttar Pradesh (Lucknow — UP Defence Industrial Corridor), Tamil Nadu (OFB — Chennai; Tamil Nadu Defence Industrial Corridor)
EU exports → India
EUR 3.8B historically (capital equipment, platforms, systems) — now increasingly via India-manufactured offset obligations: Airbus C295 transport aircraft (India-manufactured under ToT with Tata Advanced Systems); Safran aircraft engines (HAL-Safran JV — LEAP engine MRO); MBDA missiles (offset assembly); Thales radar systems (BEL partnership); Leonardo helicopters (HAL AW-139 final assembly)
Growth rate
+28% CAGR India defence exports (2020–2024) · Defence FDI inflows +45% CAGR · India private sector defence at +40% CAGR · ISRO commercial launches +30% CAGR
FTA duty impact
Defence goods are sensitive — most subject to SCOMET (Special Chemicals, Organisms, Materials, Equipment and Technologies) export control, not standard tariff treatment. Dual-use goods face both import duties and export licensing. India-EU FTA unlikely to cover defence platform trade directly but will address: dual-use goods export control cooperation; space technology trade; offset obligation frameworks; commercial aerospace component trade (HS 88 — aircraft parts) which face EU MFN 1.7–2.7% → 0% (Year 3–5).