India, Poland aim to double trade by 2030, set up defence industry and counter-terror dialogues

India and Poland have agreed to double their bilateral trade by 2030 and to open new channels of cooperation in defence manufacturing and counter-terrorism, following talks between Prime Minister Narendra Modi and Polish Prime Minister Donald Tusk in New Delhi on Thursday.

Two-way trade currently stands at roughly 6 billion US dollars a year, according to reports by PTI and Business Standard. The two sides said they would use the India-European Union free trade agreement, once it takes effect, to help reach the new target.

Defence and strategic sectors

The leaders announced a defence industry dialogue intended to prepare the ground for co-development and co-production. Modi said the two countries had agreed to deepen ties "in defence, space, and nuclear energy" and invited Polish firms to build equipment with Indian partners. Critical minerals and coal gasification were also named as areas for new partnerships.

Poland is one of NATO's biggest defence spenders relative to the size of its economy. Business Standard reported that Poland is due to receive a large allocation from a European Union defence fund, part of which can be spent on production outside the bloc, potentially including India.

Tusk referred to growing defence links and, according to PTI, remarked that Polish drones had been "very useful" to India, without giving further detail. The sides also agreed to hold a dialogue on counter-terrorism.

Ukraine and the wider picture

Poland shares a long border with Ukraine, and the war featured in the talks. Modi said India would support meaningful efforts to bring peace to Ukraine and West Asia. He also thanked Poland for helping Indian students leave Ukraine safely in 2022.

Tusk is on a three-day visit, accompanied by senior ministers and a large business delegation. He is scheduled to be in Bengaluru on Friday for a business forum and meetings with technology and space companies.

Why it matters for India

Poland is a major Central European economy and a growing defence buyer. Closer defence industrial ties could open export and joint-venture opportunities for Indian manufacturers, while the trade target gives Indian exporters of machinery, chemicals and engineering goods a clear signal of growing demand.