India, Belgium Set Ambitious Trade Doubling Target; Modi Says Growth Boosts Global Confidence

NEW DELHI, Sep 3: India and Belgium have taken significant steps to deepen their bilateral relationship, signing a series of agreements covering defence, renewable energy, investment, security and technology while setting an ambitious goal of doubling annual trade over the next five years.

The decisions were announced following extensive discussions between Prime Minister Narendra Modi and Belgian Prime Minister Bart De Wever, who agreed that closer cooperation was essential at a time when geopolitical tensions, disrupted supply chains and global economic uncertainty are reshaping international partnerships.

Five agreements were signed between the two governments, including pacts aimed at expanding defence cooperation and accelerating collaboration in renewable energy. The two sides also decided to establish an Investment Fast-Track Mechanism to encourage greater Belgian investment in India.

India and Belgium currently conduct bilateral trade worth around USD 13 billion annually. The new target seeks to substantially expand commercial engagement by strengthening cooperation in emerging sectors and creating better opportunities for businesses and investors.

A separate Memorandum of Understanding was also concluded between the Central Bureau of Investigation and the Belgium Federal Police to strengthen cooperation against transnational organised crime, cybercrime and other related offences.

Addressing the media after the talks, Modi said the international environment was passing through a period of considerable instability, with conflicts and uncertainty affecting economies and global supply networks.

He noted that challenges linked to food, fuel and supply chains were being felt across the world. Despite these pressures, Modi said India’s economy had continued to maintain strong momentum.

Referring to the country’s recent economic performance, the prime minister said India recorded 7.8 per cent growth in the last quarter and asserted that the country’s economic progress was creating confidence and opening fresh opportunities internationally.

Modi said stronger defence and security engagement would remain an important pillar of the expanding relationship between the two nations.

The leaders agreed to increase military exchanges and training programmes, while government-level agreements and partnerships between defence companies are expected to create opportunities for co-development and co-production.

On the sidelines of the prime ministerial talks, as many as 10 agreements were signed between Indian and Belgian defence industry players. Some of these arrangements are expected to support joint manufacturing of military equipment in India using Belgian technology, including cooperation involving rocket systems.

New Delhi also announced that a resident defence attache would be appointed at the Indian Embassy in Brussels, reflecting the growing importance of security and defence cooperation.

The two countries additionally agreed to strengthen intelligence-sharing arrangements and expand cooperation among relevant agencies to tackle organised crime and other cross-border security challenges.

Modi said both India and Belgium shared a firm commitment to eliminating terrorism in all its forms and manifestations.

De Wever said Belgium was interested in elevating its engagement with India across economic, political and strategic spheres. He observed that prosperity and security had become increasingly interconnected in an uncertain global environment and said the relationship between the two countries already rested on strong foundations.

The Belgian prime minister also highlighted the importance of closer India-European Union economic engagement and described progress towards an India-EU free trade agreement as a significant development.

Both leaders emphasised that the agreement should be implemented in a timely manner to unlock greater potential for trade, investment and business cooperation.

The discussions also covered major international crises, with the two prime ministers calling for conflicts in Ukraine and West Asia to be resolved through dialogue and diplomacy. They underlined the importance of respecting the UN Charter and international law while pursuing peaceful solutions.

Beyond defence and commerce, New Delhi and Brussels identified high technology, critical minerals, clean energy and semiconductors as major areas for future cooperation.

Modi said a reliable supply chain and a cleaner energy future were shared priorities. The renewable energy agreement signed during the visit is expected to provide fresh momentum to sustainability-focused projects and cooperation.

The two countries also decided to increase collaboration in the processing and recycling of critical minerals, a sector gaining strategic importance as nations seek secure access to essential materials for advanced manufacturing and clean technologies.

In the semiconductor sector, Modi said Belgium’s technological expertise and India’s expanding industrial scale offered complementary strengths that could support mutually beneficial partnerships.

The leaders further agreed to encourage closer engagement between start-ups, universities and research institutions. Cooperation in maritime capacity building will also be expanded, while both governments aim to strengthen academic and research links.

To facilitate the movement of skilled professionals and other eligible persons, India and Belgium decided to work towards the early conclusion of a Migration and Mobility Partnership Agreement.

Modi said people-to-people connections remained one of the strongest foundations of bilateral engagement and that greater cooperation among institutions, businesses, researchers and young innovators could further strengthen ties.

Belgium also reiterated its support for India’s candidature for permanent membership of a reformed and expanded United Nations Security Council.

According to the joint statement issued after the talks, both governments welcomed the steady growth of economic engagement and the increasing diversification of sectors involved in bilateral commerce. They expressed their determination to expand collaboration in areas where the two countries have shared strategic and economic interests.

Belgium remains an important economic partner for India in Europe. Bilateral trade touched USD 13.01 billion in 2025-26, with the diamond business continuing to play a major role in commercial ties due to Antwerp’s position as one of the world’s leading diamond centres.

Belgian investment has also contributed to India’s economy, with foreign direct investment from Belgium amounting to approximately USD 4.2 billion between April 2000 and December 2025.

The latest agreements build on growing political engagement between the two nations. In July, India and Belgium established a new ministerial-level strategic dialogue, providing an institutional mechanism for advancing cooperation and holding consultations on important regional and international developments.

The inaugural dialogue was held in Brussels on July 15 and was co-chaired by External Affairs Minister S Jaishankar and Belgian Deputy Prime Minister Maxime Prevot.

Belgian companies are already involved in India’s clean technology and renewable energy sectors. John Cockerill, for instance, is developing an electrolyzer manufacturing facility in Kakinada with an expected capacity of 2 GW.

Belgium’s strong position in European maritime trade, logistics and port infrastructure also offers scope for expanded collaboration with India in shipping, ports and resilient supply chains.

With new defence arrangements, a stronger investment framework and a wider focus on advanced technologies and sustainable growth, the latest decisions signal an effort by New Delhi and Brussels to build a broader and more strategically significant partnership for the years ahead.