From diamonds to defence: India, Belgium target 2x trade in 5 years
India and Belgium agreed to work towards doubling bilateral trade over the next five years, from the current base of about USD 13.01 billion (FY26)
Cooperation was expanded beyond the traditional diamond trade into defence, clean energy, critical minerals and semiconductors
The two countries signed an MoU on renewable energy and agreed to cooperate on processing and recycling of critical minerals
Both sides agreed to expand military exchanges, joint training and explore joint development and production of defence equipment
A plan was outlined to connect Belgium's semiconductor research institute (imec) with India's semiconductor ecosystem, building on India's Semicon India programme
India-EU Trade Relations and the India-EU Free Trade Agreement
Belgium is a founding member of the European Union and home to Antwerp, the world's largest diamond trading hub, making it central to India's gems and jewellery exports. Bilateral engagement with individual EU member states like Belgium sits alongside India's broader, long-running negotiations for a comprehensive India-EU Free Trade Agreement (formally the India-EU Trade and Investment Agreement).
Key Details
- India-EU FTA negotiations were first launched in 2007, stalled for years, and were relaunched in 2022 with a target to conclude by end of 2025
- The EU is one of India's largest trading partners and a major source of foreign investment
- Belgium (via Antwerp) is the traditional hub for India's diamond trade — India cuts and polishes roughly 90%+ of the world's diamonds (mostly in Surat), many of which are sourced as rough diamonds through Antwerp and exported back as polished stones
The bilateral push to double trade and diversify beyond diamonds reflects India's broader strategy of deepening ties with individual EU states even as the umbrella India-EU FTA negotiations continue separately.
Critical Minerals Cooperation and India's Critical Minerals Mission
Critical minerals (such as lithium, cobalt, nickel, rare earth elements) are essential for clean energy technologies, semiconductors and defence manufacturing, and their supply chains are concentrated in a few countries, creating strategic vulnerability. India launched the National Critical Mineral Mission to secure processing capacity and diversify supply chains.
Key Details
- The National Critical Mineral Mission was approved by the Union Cabinet on 29 January 2025 with a total outlay of ₹34,300 crore over seven years (2024-25 to 2030-31) — ₹16,300 crore in budgetary support plus an expected ₹18,000 crore investment from PSUs
- The Mines and Minerals (Development and Regulation) Amendment Act, 2023 introduced a list of 24 critical and strategic minerals and enabled auctioning of critical mineral blocks
- India is also a member of the Mineral Security Partnership (MSP), a US-led grouping of countries seeking to secure critical mineral supply chains
The India-Belgium agreement to cooperate on processing and recycling of critical minerals aligns with India's push to build downstream processing capacity domestically rather than remain dependent on a handful of processing hubs (mainly China).
Semiconductor Ecosystem — India Semiconductor Mission and imec
India's Semicon India Programme (India Semiconductor Mission) aims to build a domestic semiconductor design, fabrication and packaging ecosystem. Belgium's imec (Interuniversity Microelectronics Centre) is one of the world's leading semiconductor and nanoelectronics research institutes, headquartered in Leuven.
Key Details
- The India Semiconductor Mission was approved in December 2021 with an outlay of ₹76,000 crore, administered by the Ministry of Electronics and Information Technology (MeitY)
- imec has separately signed cooperation agreements with the India Semiconductor Mission and Indian research institutions on chip design and R&D talent development
- Semiconductor cooperation with Belgium fits into India's broader "friend-shoring" of critical technology supply chains alongside partnerships with the US, Japan and Taiwan
Linking imec's research capabilities with India's growing semiconductor manufacturing scale is intended to accelerate India's move up the semiconductor value chain from assembly/testing toward design and advanced fabrication.
- Current bilateral trade (FY26): approximately USD 13.01 billion
- Target: double bilateral trade within 5 years
- National Critical Mineral Mission outlay: ₹34,300 crore over 7 years (approved 29 January 2025)
- India Semiconductor Mission outlay: ₹76,000 crore (approved December 2021)
- MMDR Amendment Act, 2023: identified 24 critical and strategic minerals for India
- Antwerp (Belgium) remains a key global hub for rough diamond trade linked to India's cutting and polishing industry (centred in Surat)