360° UPSC Mains Analysis

Belgium and India

Belgium experiences a temperate maritime climate (Cfb under Köppen classification) influenced by the Gulf Stream, characterized by mild winters and cool summers. Geologically, it is stable, though the Ardennes region has ancient folded structures. India features a predominantly tropical monsoon climate with distinct seasons, and its northern region (including Jammu and Kashmir) is highly active seismically, lying along the convergent boundary of the Indian and Eurasian plates.

Belgium is a low-lying Western European nation bordering the North Sea, with a flat coastal plain in the northwest and the rolling hills of the Ardennes forest in the southeast. India, situated in South Asia, features diverse terrain ranging from the high Himalayas in the north to the Deccan Plateau in the south, bounded by the Indian Ocean. The maritime connection between the Port of Antwerp-Bruges and Indian ports like Mumbai and Mundra forms a vital trade corridor.

The bilateral relationship is anchored by the diamond trade, with Antwerp handling roughly 80% of the world's rough diamonds by value and India (primarily Surat) cutting and polishing 90% of them by volume. Bilateral trade reached approximately USD 15.07 billion in FY 2023-24, with diamonds accounting for over 60% of the total value. The partnership is expanding into critical minerals, green hydrogen, and advanced materials to secure supply chains.

Under the Seventh Schedule of the Constitution, 'Defence of India' (Entry 1), 'Foreign Affairs' (Entry 10), and 'Entering into treaties and agreements with foreign countries' (Entry 14) fall exclusively under the Union List (List I). Consequently, the Union Government possesses sole legislative and executive competence to negotiate, sign, and implement the bilateral defence, trade, and counter-terrorism agreements discussed in the article.

Bilateral trade between India and Belgium stood at $13.20 billion in FY 2024-25, with India's exports at$6.32 billion and imports at $6.88 billion. The two nations have set an ambitious target to double this bilateral trade over the next five years. Negotiations for the India-EU Free Trade Agreement (FTA) will receive strategic momentum as Belgium is a key EU member state and India's 5th largest trading partner within the bloc.

The expansion of trade and defence ties with Belgium, India's 5th largest trading partner in the EU, is expected to support India's GDP growth and bolster forex reserves through increased FDI, which stood at $4.06 billion cumulatively from April 2000 to December 2024. Joint defence co-production and critical mineral sourcing will help reduce import dependency, positively influencing the current account deficit over the long term. Increased bilateral trade, which stood at$13.20 billion in FY 2024-25, will further strengthen economic stability.

The secondary (manufacturing) and tertiary (services) sectors will be the primary beneficiaries, particularly defence manufacturing, semiconductors, and pharmaceuticals. The diamond industry, which dominates bilateral trade (with pearls and precious stones accounting for over $1 billion of exports in FY26 till November 2025), will see enhanced supply chain resilience. Additionally, the critical minerals and clean energy sectors will benefit from technology transfers and joint research initiatives.

The focus on defence co-production and semiconductor research (collaborating with Belgium's imec) will generate high-skilled employment opportunities in India's advanced manufacturing and R&D sectors. Strengthening the diamond cutting and polishing industry in hubs like Surat will secure livelihoods for thousands of skilled artisans. Furthermore, establishing recycling plants, such as the planned plastic recycling plant in Varanasi, will create local green jobs and improve waste supply chains.

The historical foundation of India-Belgium relations dates back to the early 18th century with the arrival of the Ostend Company in 1723 to trade in tea and luxury goods. During World War I, over 130,000 Indian soldiers fought alongside Belgian forces in Flanders Fields, with more than 9,000 making the supreme sacrifice. Following India's independence, Belgium was among the first European nations to establish formal diplomatic relations with New Delhi in September 1947, laying the groundwork for a partnership based on democratic values, federalism, and pluralism.

Initially, India-Belgium relations were heavily dominated by the diamond trade, centered around Antwerp and Gujarat, which historically constituted over 70% of bilateral trade. Over the decades, India's policy evolved to diversify this relationship through institutional mechanisms like the India-Belgium-Luxembourg Economic Union (BLEU) Joint Economic Commission established in 1997. In the 21st century, the partnership has transitioned from a purely commercial focus to a strategic one, encompassing renewable energy, space, and defense cooperation, as evidenced by the signing of a bilateral Social Security Agreement in 2006 and subsequent defense-industrial partnerships.

The diversification of India's ties with Belgium from traditional trade (diamonds) to strategic sectors (defense and critical minerals) parallels India's evolving relations with other European partners like France. Just as India-France ties transitioned from basic trade to deep strategic, defense, and space cooperation under the 1998 Strategic Partnership, India-Belgium relations are undergoing a similar strategic upgrade to address contemporary geopolitical realities.

While Belgium did not have a direct colonial footprint in India, the shared sacrifice of Indian soldiers fighting on Belgian soil during World War I (1914–1918) highlighted the global contribution of Indian troops, which Indian nationalist leaders later leveraged to demand self-rule and international recognition.

The extraction of critical minerals, highlighted in the bilateral talks, often occurs in ecologically sensitive areas. In India, such activities are governed by the Mines and Minerals (Development and Regulation) Amendment Act, 2023, and must align with Article 48A of the Constitution of India, which mandates the protection and improvement of the environment.

The article highlights defence cooperation, including the integration of OIP Sensor Systems for tank fire-control systems, which utilizes advanced optoelectronics, thermal imaging, and laser range-finding technologies.

Critical minerals are essential for manufacturing clean energy technologies like solar panels and electric vehicles, which are crucial for achieving net-zero targets and fulfilling commitments under the Paris Agreement.

The cooperation on critical minerals and trade supports SDG 12 (Responsible Consumption and Production) and SDG 13 (Climate Action) by fostering supply chain resilience for green technologies.

Enhanced counter-terrorism cooperation directly secures the lives, dignity, and daily mobility of citizens in conflict zones, allowing children to attend school and businesses to operate safely. Conversely, accelerated mining of critical minerals can degrade local water sources and air quality, directly harming the health and agricultural livelihoods of rural families.

The expansion of mining activities triggers Article 21 (Right to Life and a clean environment) and requires strict adherence to the Panchayats (Extension to Scheduled Areas) Act (PESA), 1996, which mandates Gram Sabha consultation. Furthermore, security operations must respect fundamental rights under Article 21 and Article 22 of the Constitution of India to prevent arbitrary detention.

As a District Magistrate, I would face the conflict of 'National Development vs. Tribal Rights,' balancing the extraction of critical minerals for green technology against the constitutional rights of indigenous communities. Another dilemma is 'Security vs. Liberty,' where intensifying counter-terrorism and intelligence sharing must not compromise the civil liberties and privacy of innocent citizens.

The push for critical minerals directly impacts Scheduled Tribes (STs) and forest-dwelling communities through displacement, loss of traditional livelihoods, and environmental degradation in mineral-rich regions. Additionally, civilians in conflict-prone areas like Jammu & Kashmir remain highly vulnerable to the physical and psychological trauma of cross-border terrorism.