Belgium and India have signed a comprehensive partnership framework including local assembly of Thales-made 70mm rockets, marking a significant expansion of defence industrial cooperation. The agreement, formalized during Belgian Defense Minister Theo Francken's visit to India in early September 2026, represents part of a broader wave of 10 bilateral defence pacts aimed at localizing weapons produ
Key Takeaways
- Belgium and India formalized 10 defence industrial agreements in September 2026, with local 70mm rocket production expected by early 2027 through a Thales-Kalyani partnership
- The partnership framework includes a €50 million ammunition production project with 100 million rounds annual capacity planned for 2028-2029 delivery
- India's Make in India initiative is driving a structural shift toward local defence manufacturing rather than imported finished systems, reducing dependency and building sovereign capacity
- The agreements extend across rockets, ammunition, naval mine-countermeasures, marine diesel engines, and armed drone systems, reflecting comprehensive military modernization cooperation
- A bilateral BSDI-SIDM cooperation agreement was signed to facilitate ongoing technology transfer and co-development between Belgian and Indian defence manufacturers
Belgium and India have formalized a comprehensive partnership framework encompassing local assembly of 70mm rockets and nine additional defence industrial agreements, marking a significant deepening of bilateral defence cooperation during a working visit by Belgian Prime Minister Bart de Wever and Defence Minister Theo Francken to India in early September 2026.
The 70mm Rocket Production Agreement
The centrepiece of the collaboration is a partnership between Thales Belgium and Kalyani Strategic Systems to produce 70mm rockets entirely within India, with the first domestically manufactured rocket expected in early 2027. The arrangement represents a mutual benefit structure: India develops its own production capacity for a weapon system in high operational demand, while Thales gains an additional manufacturing source for international orders and strengthens European security of supply for rocket-based munitions.
The 70mm Hydra-type rocket has long been a practical platform for technology transfer arrangements due to its widespread use across NATO and partner-nation inventories in helicopter and ground-attack roles. The production process for this weapon format is well established, making it an accessible starting point for Indian manufacturing while the operational demand remains broad. Belgium's defence ministry emphasized that the move will strengthen European security of rocket supply while simultaneously supporting New Delhi's long-running effort to localize defence production under its Make in India initiative.
Broader Industrial Cooperation Framework
The overall collection of 10 agreements signed during the visit also includes ammunition production and naval mine-countermeasure systems. Notably, an ammunition production project valued at €50 million ($58 million) was established between Liège-based machinery manufacturer New Lachaaussée and Tembo Classic Engineering in India. Under this arrangement, New Lachaaussée will supply a full production line for two ammunition calibers, alongside tooling for two additional calibers, with an overall production capacity of approximately 100 million rounds per year planned and deliveries scheduled for 2028 and 2029.
A partnership between Exail Belgium and Larsen & Toubro will see the European firm supply autonomous toolboxes used to detect, identify and neutralize naval mines to the Indian government. This arrangement builds on Exail's existing contract to jointly provide the Belgian and Dutch navies with 12 Mine Countermeasure Vessels, extending the company's expertise into a new geographic market.
The Anglo Belgian Corporation (ABC) is in discussions with Kirloskar Oil Engines that could lead to ABC offering its expertise in support of Kirloskar building the first fully Indian-produced 6MV marine diesel engine. Aviation partnerships are also expanding, with Flemish firm Sol.One and DGVK Enterprises working together to introduce an armed quadplane drone designed to attack supply chains known as Saboteur, as well as low-cost drone interceptors dubbed Buzzkill and Hitchhiker, to the Indian market. The Indian armed forces have requested information about the various aircraft and want to test them, with the Belgian defence ministry noting that successful tests could quickly lead to a large-scale order.
Strategic Framework for Industry Cooperation
In addition to individual partnerships, a cooperation agreement between the Belgian Security & Defence Industry (BSDI) and the Society of Indian Defence Manufacturers (SIDM) was signed to make it easier for Belgian companies to participate in co-development under the Make in India initiative. Belgian Defence Minister Theo Francken emphasized the scale of the opportunity, stating that "India is modernising one of the largest armed forces in the world," and that "for companies whose technology gains access to these programmes, this can quickly translate into major orders and major contracts".
Beyond industrial matters, Brussels and New Delhi also signed a Letter of Intent relating to "structural cooperation" between the two sides, including training, exchanges between officers, research and development, joint exercises and maritime security. India's Defence Minister Rajnath Singh characterized the arrangements as efforts toward "leveraging Belgian technology together with Indian skill and scale".
Structural Shift in Defence Procurement
The Belgium-India partnership reflects a fundamental transformation in how governments approach defence procurement. Rather than purchasing finished munitions or complete systems, partner nations are increasingly negotiating rights to manufacture locally within their own borders. This approach addresses multiple strategic objectives simultaneously: it reduces import dependency, builds sovereign industrial capacity, and creates in-country jobs—all priorities that have become standard in modern bilateral defence negotiations.
This trend has accelerated significantly since the early 2020s, driven by two primary factors. Supply chain vulnerabilities exposed during the COVID-19 pandemic demonstrated the risks of over-reliance on single-source imports, while the high munitions consumption rates observed during the Ukraine conflict highlighted the operational value of robust domestic manufacturing infrastructure. Nations across Asia, Europe, and the Middle East have responded by accelerating localisation requirements in arms procurement contracts, with India among the most aggressive in mandating domestic content thresholds.
The Belgium-India framework exemplifies how this localisation imperative creates mutual benefit. Thales gains a production facility in a strategically important region and expands its sourcing options for international customers. Meanwhile, India builds industrial capacity for weapons systems that are operationally essential while simultaneously satisfying Make in India requirements. For Belgian companies, access to the Indian defence market—one of the world's fastest-growing—represents substantial commercial opportunity, particularly as India's armed forces modernize one of the largest military establishments on the planet.
Timeline and Next Steps
The production timeline for the 70mm rocket partnership is notably aggressive. The first 70mm rocket produced "entirely" in India is expected in "early 2027", indicating that manufacturing infrastructure and technology transfer processes are already substantially advanced. For the ammunition production line, deliveries are scheduled for 2028 and 2029, allowing more time for the larger production facility to be established and validated. The aviation drone partnerships remain in the testing phase, with final procurement decisions contingent on successful trials by Indian armed forces.
This cluster of 10 agreements, formalized during a single high-level bilateral visit, signals accelerating momentum in distributed, in-country weapons manufacturing. It demonstrates how traditional defence exporters in Europe are adapting to the new procurement environment by positioning themselves as technology partners in localisation initiatives rather than sole suppliers. For India, the partnership framework accelerates its transition toward defence manufacturing self-sufficiency while leveraging proven European technical expertise and industrial processes.
Sources
- Breaking Defense: Belgium and India partner on local 70mm rocket assembly, wave of industry agreements
- Breaking Defense: How Congress is trying to fund the E-7 Wedgetail program
- Breaking Defense: Oshkosh dangles JLTV bridge option for Marine Corps, but the deadline is looming
- SpaceNews: Agile Space Industries Celebrates Durango Headquarters Expansion with Ribbon Cutting
- MachineHours Encyclopedia: Von Neumann Architecture — The Blueprint of Every Computer
Frequently Asked Questions
What is the Belgium-India 70mm rocket assembly agreement?
Belgium and India signed a partnership allowing India to assemble 70mm rockets domestically. The deal combines European technical expertise with India's push to localise defence production under its Make in India policy.
What is the E-7 Wedgetail and why does it need Congressional funding?
The E-7 Wedgetail is a Boeing-built airborne early warning and control aircraft the US Air Force wants to replace the aging E-3 Sentry. Congress is working through multiple appropriations pathways to fund the program, though no final figure has been confirmed.
What is the JLTV bridge option Oshkosh is offering the Marine Corps?
Oshkosh Defense has offered the Marine Corps a bridge contract option to continue procuring Joint Light Tactical Vehicles, but has set a firm deadline for the service to accept. The Marines have pursued a different vehicle acquisition path from the Army, complicating the decision.
What does Agile Space Industries do and why did it expand?
Agile Space Industries develops in-space propulsion systems for satellites and orbital vehicles. The company marked the expansion of its Durango, Colorado headquarters with a ribbon-cutting on September 2, 2026, reflecting growth in the orbital manoeuvring propulsion market.
Get MachineHours in your inbox
AI compute and the machine economy in your inbox.
