The rift between former U.S. President Donald Trump and NATO, particularly over defence spending and the Ukraine war, presents significant opportunities for India to benefit financially. As European countries increase their defence budgets to reduce reliance on the U.S., India's expanding defence industry can capitalize on these developments.

The European Union has been seeking to strengthen its defence capabilities, and India is well-positioned to play a crucial role in this process. Indian defence manufacturers can integrate into European supply chains and export weapons and systems to EU countries.

For instance, France is in advanced talks to purchase India's Pinaka multi-barrel rocket launcher system, which could mark a significant milestone in India's defence exports to Europe.

India's defence exports have grown substantially, rising from ₹2,000 crore annually a decade ago to ₹21,000 crore in the latest financial year.

This growth is partly due to increased demand for Indian-made ammunition and major platforms like armoured vehicles and artillery guns.

The ongoing Ukraine-Russia conflict has depleted European ammunition reserves, creating a lucrative market for Indian manufacturers. As Europe boosts its defence spending, Indian companies can not only increase exports but also become integral parts of European manufacturers' supply chains, enhancing their capabilities and potentially generating billions in revenue.

Furthermore, India's strategic position allows it to navigate complex geopolitical dynamics. While the U.S. under Trump may pressure India to address trade imbalances by purchasing more American products, India's historical ties with Russia and its strategic autonomy enable it to maintain diverse relationships.

This flexibility could help India leverage opportunities arising from both the Trump-NATO rift and broader geopolitical shifts.

India can make billions by capitalizing on the Trump-NATO rift through increased defence exports to Europe, integration into European supply chains, and strategic manoeuvring in global geopolitics.

ET News