What India expects to gain from Modi’s Europe visit – Firstpost

Prime Minister Narendra Modi’s multi-nation tour, running from May 15-20, 2026, marks a highly strategic push into Europe.

While the tour kicked off with a brief, high-impact stopover in the UAE
to sign off on West Asian energy and defence pacts, the core of the trip is focused on four major European nations: the Netherlands, Sweden, Norway, and Italy.

As India positions itself as a global manufacturing hub and a leader in the green transition, New Delhi enters these talks backed by major institutional milestones, including the India-EFTA Trade and Economic Partnership Agreement (TEPA) and ongoing momentum from
the India-EU Free Trade Agreement (FTA).

India’s outreach to Europe has steadily increased over the past few years as New Delhi looks beyond traditional alignments and seeks dependable economic and political partners.

European countries, too, have recalibrated their approach towards India, viewing it not only as a major market but also as a key strategic actor that
helps balance the unpredictability that they have been receiving from the United States under President Donald Trump.

India’s agenda in the Netherlands

The first major European leg of the tour focuses on the Netherlands, which has emerged as one of India’s most important economic partners in Europe.

Bilateral trade between the two countries reached approximately USD 27.8 billion during FY 2024-25, making the Netherlands India’s largest trading partner in Europe, its third-largest export destination globally and its 11th-largest trading partner overall.

The country has also become a major investment hub for Indian businesses entering Europe. Dutch cumulative foreign direct investment in India has touched nearly USD 55.6 billion, while Indian overseas investments in the Netherlands stand at roughly USD 28 billion.

More than 300 companies operate across both countries.

Meetings involving Modi, Dutch Prime Minister Rob Jetten and King Willem-Alexander are expected to focus on transforming the bilateral relationship beyond traditional sectors.

One of the most important priorities for India during this visit is semiconductor cooperation as New Delhi aggressively attempts to build a domestic semiconductor manufacturing ecosystem.

The Netherlands occupies a critical position in the global semiconductor value chain due to its advanced lithography and chip-manufacturing technologies.

India is looking to deepen engagement with Dutch technology firms and the wider ASML ecosystem to support the development of semiconductor fabrication facilities within the country.

During the visit, TATA Electronics and ASML Netherlands are reportedly expected to sign an agreement related to equipment supply for the semiconductor fabrication plant being developed in Dholera, Gujarat.

Water management and maritime infrastructure are also expected to dominate discussions. The two countries already share an established Strategic Partnership on Water, but the current visit is expected to broaden cooperation into climate-resilient port infrastructure, smart shipping systems, sustainable fisheries and coastal resilience.

As part of the visit, Modi and Dutch leaders are expected to tour the Afsluitdijk Dam, a symbol of Dutch expertise in water engineering and sustainable infrastructure.

India, which faces growing climate vulnerabilities and coastal management challenges, is keen to integrate Dutch technological expertise into its own infrastructure planning.

Another major subject is clean energy cooperation. India’s National Green Hydrogen Mission requires large-scale investments, technology partnerships and export-oriented infrastructure.

The Netherlands is expected to play a significant role in this effort because of its advanced energy logistics systems and strategic location within Europe.

The visit also reflects India’s broader strategy of aligning with European partners in sectors that can reduce dependence on fossil fuels and strengthen long-term energy security.

India’s agenda in Sweden

From the Netherlands, Modi will travel to Sweden, marking his first visit to the Nordic country in eight years.

Sweden is increasingly being viewed by India as a crucial innovation-driven economy capable of supporting India’s ambitions in advanced manufacturing, digital technologies and industrial modernisation.

Prime Minister Ulf Kristersson is expected to host talks focused on artificial intelligence, quantum technologies, resilient supply chains, defence manufacturing, green transition technologies and space cooperation.

Bilateral trade between India and Sweden reached around USD 7.75 billion in 2025, while more than 280 Swedish companies currently maintain operations in India.

Stockholm is also positioning itself as a strategic investment and manufacturing partner under the Make in India initiative.

A central pillar of the discussions is expected to be collaboration in AI and deep technologies. India wants to connect its rapidly expanding startup ecosystem with Swedish research institutions, incubators and innovation clusters.

Proposed frameworks are expected to cover areas such as artificial intelligence, quantum computing, advanced industrial automation and digital infrastructure resilience.

The space sector is another emerging area of engagement. Cooperation between Isro and Swedish space entities is expected to receive renewed attention during the visit, particularly as both countries attempt to expand their space technology and satellite capabilities.

Defence cooperation has become one of the fastest-growing dimensions of India-Sweden relations. Swedish defence giant Saab is establishing its first Carl-Gustaf manufacturing facility outside Sweden in Jhajjar, Haryana.

The project has drawn attention because it represents India’s first defence manufacturing initiative built entirely through foreign direct investment.

India sees Sweden not only as a defence supplier but also as a long-term manufacturing and co-development partner capable of contributing to indigenous production goals under Make in India.

Another area attracting Indian interest is Sweden’s reserves of critical minerals, which are becoming increasingly important for sectors such as semiconductors, electric vehicles, renewable energy systems and defence electronics.

As competition over rare-earth supply chains escalates globally, India is actively seeking partnerships that can reduce vulnerabilities in access to critical materials.

One of the most significant moments of the Sweden visit is expected to be Modi and Kristersson’s joint interaction with the European Round Table for Industry alongside European Commission President Ursula von der Leyen.

New Delhi is expected to use the platform to promote India as a preferred destination for manufacturing relocation, industrial investment and technology partnerships in the post-India-EU FTA environment.

India’s agenda in landmark Norway visit & the Nordic Summit

Perhaps the most diplomatically symbolic component of the tour is Modi’s Norway visit. It marks the first standalone bilateral visit by an Indian prime minister to the country in 43 years, reflecting New Delhi’s increasing strategic focus on the Nordic region.

The Oslo leg combines bilateral meetings with Norwegian Prime Minister Jonas Gahr Støre and participation in the 3rd India-Nordic Summit involving leaders from Norway, Sweden, Denmark, Finland and Iceland.

The India-Nordic summit process began in Stockholm in 2018 and continued in Copenhagen in 2022. The United States is the only other country that maintains an equivalent summit-level framework with Nordic nations.

The 3rd edition of the summit was originally planned for last year but was postponed following
the April 2025 Pahalgam terrorist attack.

The summit is expected to significantly deepen cooperation in clean technologies, climate action, Arctic governance, defence, digital infrastructure, blue economy partnerships and emerging supply chains.

Trade and investment remain major pillars of the engagement. India-Nordic trade in goods and services reached roughly USD 19 billion in 2024, with exports valued at USD 9.4 billion and imports at USD 9.6 billion.

More than 700 Nordic companies operate in India, while around 150 Indian firms maintain a presence across the Nordic region.

India hopes the summit will help accelerate investment flows under the Make in India initiative, especially from Nordic pension funds and sovereign investors.

This effort is being reinforced by the India-EU FTA process and the India-EFTA TEPA agreement covering Iceland, Liechtenstein, Norway and Switzerland.

Norway occupies a particularly important financial position because of the Government Pension Fund Global (GPFG), the world’s largest sovereign wealth fund, whose assets have approached USD 2 trillion. The fund already has investments worth close to USD 30 billion in Indian capital markets.

India is expected to seek greater participation from Norwegian capital in renewable energy projects, green infrastructure, sustainable urban development and clean technologies.

Norfund, Norway’s development investment fund, is already active in Indian renewable energy projects.

Indian shipyards currently account for approximately 11 per cent of the Norwegian Shipowners’ Association’s order book. Norwegian tunnelling expertise has also contributed to infrastructure projects in India, including the Char Dham railway project in Uttarakhand.

“We plan to strengthen the relationship between Norway and India by creating a “Green Strategic Partnership”. This will focus on accelerating the green transition by building green industries and jobs, improve energy security and promote a circular economy. It will also encourage more investment and research,” May-Elin Stener, the Norwegian Ambassador to India, told Firstpost in an interview.

Arctic governance is emerging as another major area of strategic engagement. With all five Nordic nations being members of the Arctic Council,
India is looking to establish a dedicated India-Nordic Arctic cooperation mechanism.

New Delhi increasingly sees the Arctic as strategically relevant due to its impact on climate systems, shipping routes, resource access and future geopolitical competition.

The Nordic countries have consistently backed India’s bid for permanent membership in a reformed UN Security Council.

The IMEEC corridor & defence focus in Italy

The final leg of Modi’s Europe outreach takes him to Italy at the invitation of Prime Minister Giorgia Meloni.

The visit builds on the rapid improvement in India-Italy ties witnessed over the past few years. Discussions with Meloni and Italian President Sergio Mattarella are expected to focus on implementing the Joint Strategic Action Plan 2025-2029.

Italy has emerged as an increasingly important partner for India in sectors such as defence manufacturing, aerospace, scientific research, clean energy and connectivity infrastructure.

Bilateral trade between India and Italy crossed USD 16.77 billion in 2025, and both countries are aiming to further expand economic ties under the larger India-EU trade framework.

One of the key strategic dimensions of the visit is
the India-Middle East-Europe Economic Corridor (IMEEC), which Italy joined during the G20 Summit in New Delhi in 2023.

Italy is regarded as the western anchor of the corridor, which India views as a major initiative for improving trade connectivity, strengthening supply chains and enhancing energy security across regions linking Asia and Europe.

Defence cooperation
between the two countries has expanded substantially in recent years, and discussions are expected to focus on joint manufacturing, co-development of defence systems and aerospace collaboration.

Italy is also part of several India-backed multilateral initiatives, including the International Solar Alliance (ISA), Coalition for Disaster Resilient Infrastructure (CDRI), Indian Ocean Rim Association (IORA) and Indo-Pacific Oceans Initiative (IPOI).

Meloni’s engagement with India has grown steadily since taking office. Her first state visit after assuming power was to India in March 2023, and she also participated in the Raisina Dialogue and the G20 Leaders’ Summit in New Delhi later that year.

Why Europe has become key in India’s outreach

The weakening predictability of the transatlantic order, uncertainty in global supply chains after the pandemic, tensions involving China, and continuing conflicts in regions such as West Asia and Eastern Europe have pushed countries to diversify partnerships and reduce strategic vulnerabilities.

For years, New Delhi’s engagement with Europe was often viewed as secondary to its ties with Russia, the US or key Asian partners. However, these changing geopolitical realities have elevated Europe’s importance in India’s foreign policy calculations.

New Delhi sees Europe as an increasingly stable and technology-rich partner capable of supporting India’s long-term economic ambitions.

The continent offers access to capital, cutting-edge industrial capabilities, green technologies, innovation ecosystems and high-value export markets.

For Europe, India represents a rapidly expanding economy, a democratic partner in the Indo-Pacific and an alternative manufacturing destination at a time when several European companies are reassessing their overdependence on China-centric supply chains.

The ongoing India-EU FTA negotiations and the operationalisation of the India-EFTA TEPA are key to this evolving relationship.

The visit also demonstrates India’s effort to convert diplomatic agreements into measurable economic outcomes.

Rather than limiting engagement to political declarations, New Delhi is now focusing on practical deliverables such as semiconductor plants, defence manufacturing projects, clean energy infrastructure, sovereign wealth investments and industrial partnerships.

The Europe tour is also taking place just weeks before Modi’s expected participation in the G7 Summit in France next month.

With inputs from agencies