By: Sapna Suresh
The recent deterioration in transatlantic ties between the United States and European Union (EU) over tariffs, Greenland, and the Iran War is mirrored in growing competition between Washington and Brussels over India as a defense, trade, and technology partner. On January 27, the European Commission and the government of India announced the conclusion of a landmark Free Trade Agreement. The United States, which last year levied tariffs of up to 50% of Indian imports, announced an interim trade agreement with India a little over two weeks later. But it is not just on trade and market access that Washington and Brussels are competing for favor in India. Their competition extends to defense and security and to migration and mobility.
On defense and security, both the United States and Europe had long expressed unease about India’s dependence on Russia for military supplies. From 2021-2025, India imported 40% of its weapons from Russia, although it has deepened defense relations and arms purchase with Western powers, namely France and the United States. However, while both sides of the Atlantic benefit from India’s diversification away from Russia, European and American defense manufacturers are often in direct competition with each other. One example is the competition between the French firm Dassault Aviation and the American firm Boeing on selling fighter jets to India.
This competition has been compounded by growing expectations by the United States that Europe spends more on defense and growing calls in Europe for strategic autonomy. While France has been the traditional advocate of European strategic autonomy, traditionally staunch Atlanticist countries such as Germany, Poland, and the Netherlands are echoing calls for greater strategic autonomy and bolstering indigenous European defense capabilities. Germany’s pledge to invest more in defense and become “Europe’s largest conventional army" is a significant development. European rearmament has expanded India-EU defense cooperation beyond France, such as with Germany, Poland, and Italy. One such example includes the $8 billion TKMS submarine deal India is expected to finalize with Germany within the next three months. Likewise, the Italian firm Leonardo collaborated with the Indian firm BHEL to co-produce naval gun systems.
Another area in which Brussels has capitalized on the deterioration of ties between New Delhi and Washington is regarding migration and mobility. Shortly after the implementation of the U.S. $100,000 fee for Indians for an American H-1B non-immigrant work visa, Europeans quickly sought to attract Indian professionals. France announced plans to host 20,000 Indian students by 2030. In a social media post that has since become popular, the German Ambassador to India Philipp Ackermann said, "Our migration policy works a bit like a German car — it's reliable, it's modern, and it is predictable." In addition, one of the outcomes of the India-EU summit in January 2026 was a mobility pact, aimed at easing restrictions on Indian students and professionals migrating to Europe. That agreement complements prior bilateral agreements on migration and mobility that India signed with EU member states.
The EU’s efforts to increase the number of Indian students amid H-1B visa challenges are not an isolated move. The EU has implemented similar policies to attract skilled professionals to develop its indigenous technology sector as part of a broader policy push to achieve “digital sovereignty.” One example of this is the EU’s “Choose Europe for Science” initiative aimed at attracting American scientists following the cuts to research programs at American universities. France launched a similar initiative, titled “Choose France for Science,” aimed at attracting international researchers. While Indian migration to Europe does not come without its challenges, it represents another area in which the EU and the United States will regard each other as competitors in the years to come, as part of their growing technological competition.
For many decades, India regarded the EU — and Europe in general — as a mere extension of a U.S.-led ‘West.’ However, recent developments, including the India-EU Summit, indicate how European interests are diverging from American interests. The growing competition between the United States and Europe for market access, technological talent, and defense industrial cooperation in India is indicative of a more fragmented West.
Sapna Suresh is a graduate student at The George Washington University.