PM Modi’s Trump hedge: India building new global partnerships, one deal at a time, says NYT
India has advanced multiple bilateral arrangements in 2026 spanning defence, education, and trade, reflecting deeper engagement across several strategic partners.
India and Germany have moved toward an agreement (reported value around $8 billion) for the joint construction of six conventional submarines in India under Project 75(India), reportedly including technology transfer for the first time.
France has announced measures to ease student visa procedures for Indian nationals and expand English-taught academic programmes, as part of a bilateral push to raise the number of Indian students in France.
Customs duty on Scotch whisky imported from the United Kingdom has been cut under the India-UK Comprehensive Economic and Trade Agreement (CETA), which came into force in 2026.
Project 75(India) and Defence Procurement/Indigenisation Policy
Project 75(India), under the Strategic Partnership Model of India's Defence Acquisition Procedure (DAP 2020), envisages construction of six advanced conventional (diesel-electric) submarines in India in collaboration with a foreign Original Equipment Manufacturer, with mandatory transfer of technology. The German Type 214NG design has emerged as the preferred platform, incorporating Air Independent Propulsion (AIP) technology that allows a conventional submarine to remain submerged for extended periods without surfacing.
Key Details
- The Strategic Partnership Model was introduced under DAP 2020 to build indigenous defence manufacturing capacity through foreign collaboration in select segments (submarines, fighter aircraft, helicopters, armoured vehicles).
- Project 75(India) is distinct from the earlier Project 75, under which Scorpene-class submarines (with France) were built at Mazagon Dock Shipbuilders under an earlier transfer-of-technology arrangement.
- AIP technology and indigenous submarine construction are relevant to India's broader "Atmanirbhar Bharat" defence indigenisation push and Indian Ocean Region (IOR) maritime security strategy.
The submarine cooperation with Germany is a live example of the Strategic Partnership Model and technology-transfer-based defence procurement, testable both as a policy mechanism (DAP 2020) and in the geography/strategy context of Indian Ocean naval capability.
India-UK Comprehensive Economic and Trade Agreement (CETA)
CETA is a bilateral free trade agreement between India and the United Kingdom, signed on 24 July 2025 and brought into force in 2026, under which India will remove or reduce tariffs on a large share of UK product lines while the UK provides duty-free access to the vast majority of Indian exports. Customs duty on Scotch whisky was reduced immediately from 150% to 75%, with further staged reduction to 40% over ten years.
The Scotch whisky duty cut is a direct, testable outcome of a named bilateral trade instrument (CETA) — useful for questions on India's FTA architecture and tariff policy under the Foreign Trade Policy framework.
Educational and Academic Mobility Diplomacy
Bilateral education cooperation, such as the France-India push to ease student visas and expand English-medium programmes, falls under the broader ambit of people-to-people diplomacy and is often formalised through instruments like the India-France Knowledge and Innovation partnerships and institutions such as Campus France (the French national agency for promoting higher education abroad).
Key Details
- India's National Education Policy (NEP) 2020 encourages internationalisation of higher education, including foreign university tie-ups and student mobility agreements.
- France has set a target of hosting a larger number of Indian students by the end of the decade, alongside simplified visa and post-study work pathways.
- Such mobility agreements are typically distinct from trade agreements (no tariff/goods component) and fall under broader "soft power" and educational diplomacy frameworks.
Easing of student visa norms for Indian students in France illustrates non-trade bilateral cooperation instruments (education/mobility diplomacy) that complement trade and defence engagement, relevant to India's overall foreign policy diversification strategy.
- Project 75(India) submarine cooperation with Germany is reported at approximately $8 billion for six conventional submarines using Air Independent Propulsion technology (Type 214NG design).
- The India-UK CETA was signed on 24 July 2025 and entered into force in 2026; it cuts Scotch whisky import duty immediately from 150% to 75%, falling further to 40% over ten years.
- CETA targets doubling bilateral India-UK trade (from about $56 billion) by 2030, with the UK offering duty-free access to about 99% of Indian exports.
- France has committed to easing student visa procedures and expanding English-taught higher education programmes for Indian students as part of bilateral education cooperation.