India and Belgium

Setting the Stage: A Small Country, an Outsized Partnership

Belgium is a small nation, yet it punches far above its weight in India’s economic imagination — for one glittering reason: diamonds.

The relationship is best understood as a three-century story of trade, science and craftsmanship, running from the crystal and chandelier trade of pre-colonial times to today’s dense links in gems, pharmaceuticals, life sciences, space and, increasingly, defence.

Belgium’s significance is amplified by two structural facts.

• First, it hosts Antwerp, the world’s foremost diamond-trading hub, tied umbilically to India’s cutting-and-polishing capital of Surat.
• Second, Belgium is home to the headquarters of the European Union and NATO in Brussels, making it a strategic doorway to the wider European and transatlantic architecture.

Historical Background

Commercial contact is ancient — India historically imported chandeliers and crystal from the Low Countries. In the 18th century, the Ostend Company traded along India’s eastern and southern coasts, and Indian soldiers fought on Belgian soil during the World Wars. Formal diplomatic relations were established in 1948, shortly after independence.

For decades the relationship stayed low-key and trade-focused, but it has been deliberately upgraded in recent years as India’s economic weight has grown. A symbolic marker was the first-ever visit by a President of India to Belgium in 2013, which coincided with Europalia India — a grand cultural festival (some 450 events across roughly a hundred venues) that showcased India’s heritage to Europe — and the conclusion of a treaty on higher education.

Areas of Cooperation

The Diamond Axis — the Heart of the Relationship

The single dominant strand is the diamond trade. The exchange of rough and polished stones between Antwerp and Surat accounts for more than half of total bilateral trade — indeed diamonds are the top commodity flowing in both directions.

A large Indian community works in Antwerp’s diamond district, and India today processes an overwhelming share of the world’s diamonds by volume.

• Kimberley Process: Both are members of the Kimberley Process (launched in the early 2000s, with a certification scheme operating since 2003) that keeps ‘conflict diamonds’ out of the legitimate trade.
• A trade-deal boost: The 2026 India–EU Free Trade Agreement lowers India’s import duty on naturally polished diamonds of European origin — a change long sought by the Antwerp diamond centre and a shot in the arm for the Antwerp–Surat corridor.
• The lab-grown disruption: The rise of lab-grown diamonds is reshaping the industry worldwide, pressuring the natural-stone trade that binds the two economies and pushing both to modernise and diversify.

Trade, Investment & Commercial Diplomacy

Beyond diamonds, India exports gems, chemicals, base metals, textiles, pharmaceuticals and refined petroleum, while importing machinery, plastics and diamonds.

Indian IT, software and telecom firms have a strong presence in Belgium, and Belgian firms operate in Indian engineering, mechanical appliances and steel.

• Institutional framework: A Bilateral Investment Treaty with the Belgium–Luxembourg Economic Union (1997) and a standing Joint Commission provide the architecture; Belgium ranks among India’s mid-tier foreign investors.
• The 2025 economic mission: A landmark high-level Belgian economic mission — led by Princess Astrid alongside senior ministers and over 300 delegates — resulted in dozens of agreements spanning renewable energy, healthcare, advanced materials, transport, aerospace and defence, signalling a decisive push to broaden the relationship beyond diamonds.
• Ports & logistics: Cooperation extends to port training, drawing on Antwerp’s world-class port expertise.

Science, Technology & Space

Science is a quietly rich dimension. A Science & Technology MoU (2006) and a subsequent Joint Commission built a durable framework for research collaboration.

• Space cooperation: Ties date to the late 1990s; a Belgian-built micro-satellite was launched aboard India’s PSLV, and cooperation with Belgian space firms has continued.
• The Devasthal telescope: A flagship achievement is the 3.6-metre optical telescope at Devasthal (Nainital), built with Belgian optical engineering (AMOS) and activated in 2016 — among the largest of its kind in Asia.

Education, Culture & People-to-People

• Higher education: A dedicated education relationship draws many Indian students to Belgian universities, backed by a bilateral treaty on higher education.
• Cultural showcases: Festivals such as Europalia India deepen mutual understanding and people-to-people ties.

Security & Counter-Terrorism

Both nations are victims of terrorism and share a strong convergence on the issue. During the Indian Prime Minister’s 2016 visit — days after the Brussels attacks — India paid tribute at the Maalbeek metro station and pressed for a Comprehensive Convention on International Terrorism (CCIT) at the United Nations.

The two concluded a Mutual Legal Assistance Treaty and an Extradition Treaty, and defence and security cooperation is now emerging as a fresh frontier, with both sides working toward a dedicated defence framework.

Issues & Challenges

• Over-concentration on diamonds: With gems dominating more than half of trade, the relationship is dangerously narrow; any shock to the diamond business hits the whole partnership.
• The lab-grown diamond shift: Falling natural-diamond demand and prices threaten the Antwerp–Surat trade that anchors bilateral commerce.
• Modest diversification: Cooperation in high-potential sectors such as pharmaceuticals, life sciences, infrastructure and defence remains under-realised relative to its promise.
• EU regulatory barriers: As an EU member, Belgium applies Union-wide non-tariff measures (on carbon, sustainability and standards) that can complicate Indian exports.
• Mobility frictions: Visa and skilled-mobility issues periodically constrain the flow of Indian professionals and students.

Way Forward

• Diversify beyond diamonds: Build out the promising pillars flagged in recent engagement — renewable energy, healthcare and pharmaceuticals, advanced materials, aerospace and defence — to de-risk the relationship.
• Leverage the India–EU FTA: Use the new trade architecture to expand market access and modernise the diamond trade rather than merely defend it.
• Conclude the defence framework: Institutionalise the emerging defence and security cooperation into a durable agreement.
• Deepen science & talent links: Scale up space and research collaboration and ease skilled-worker mobility to match Belgium’s labour needs with India’s talent.

Conclusion

India–Belgium relations rest on an unusually old and durable commercial foundation, symbolised by the Antwerp–Surat diamond corridor. Yet the very concentration that gives the relationship its sparkle is also its chief vulnerability.

The clear trajectory — visible in recent high-level engagement — is toward a broader, more resilient partnership spanning defence, aerospace, green energy, pharmaceuticals and space.

If both sides can convert their deep trust and complementary strengths into genuine diversification, this small-country partnership can shine well beyond its traditional gemstone core.