India-Belgium Trade Shows Signs of Recovery in FY2026
ECONOMY & POLICY

India-Belgium Trade Shows Signs of Recovery in FY2026

India-Belgium economic relations are gaining renewed momentum following Belgian Prime Minister Bart De Wever’s three-day official visit to India from September 2–4, 2026. The visit, the first by a Belgian Prime Minister to India in two decades, focused on strengthening cooperation across trade, investment, defence, technology, connectivity and logistics.

Belgium is an important European investment and trading partner for India, with cumulative foreign direct investment inflows of around $4.25 billion between April 2000 and March 2026. The country is a major European manufacturing, trade and logistics hub with strengths in pharmaceuticals, chemicals, machinery, diamonds, transport equipment and maritime logistics. The India-EU Free Trade Agreement, concluded in January 2026, is also expected to support greater market access and stronger bilateral commercial ties once implemented.

According to an analysis by Rubix Data Sciences, India’s exports to Belgium declined from $10.1 billion in FY2022 to $6.3 billion in FY2025, before recovering 4.4% year-on-year to $6.6 billion in FY2026. Imports from Belgium fell from $10 billion in FY2022 to $6.4 billion in FY2026, including a 2.8% year-on-year decline during FY2026.

Total bilateral goods trade contracted from $20 billion in FY2022 to $12.9 billion in FY2025 before marginally recovering to $13 billion in FY2026, representing 0.8% year-on-year growth. India’s trade balance also returned to a surplus of $0.2 billion in FY2026 after recording a deficit of $0.3 billion in FY2025.

Diamonds continue to dominate two-way merchandise trade, accounting for 22% of India’s exports to Belgium and 29% of imports in FY2026. The trade reflects the complementary roles of Antwerp as a global diamond trading and distribution centre and India as a major hub for diamond cutting and polishing.

Pharmaceuticals also feature prominently in bilateral trade, contributing 5% of India’s exports to Belgium and 2% of imports in FY2026. Belgium’s established pharmaceutical and life sciences ecosystem, combined with India’s large-scale manufacturing capabilities, provides opportunities for deeper cooperation across medicines, specialised formulations and healthcare value chains.

Beyond diamonds and pharmaceuticals, India exports products including unmanufactured tobacco, crustaceans and flat-rolled steel to Belgium, while imports include air pumps, aluminium scrap and orthopaedic devices. The diversified trade basket offers further potential across marine products, engineering goods, industrial inputs, healthcare equipment, chemicals and automotive components.

With bilateral engagement increasing, deeper value-chain integration across advanced manufacturing, pharmaceuticals, chemicals, engineering, automotive components, ports and logistics could help expand India-Belgium trade beyond traditional product categories and support a more resilient economic partnership.

India-Belgium economic relations are gaining renewed momentum following Belgian Prime Minister Bart De Wever’s three-day official visit to India from September 2–4, 2026. The visit, the first by a Belgian Prime Minister to India in two decades, focused on strengthening cooperation across trade, investment, defence, technology, connectivity and logistics.Belgium is an important European investment and trading partner for India, with cumulative foreign direct investment inflows of around $4.25 billion between April 2000 and March 2026. The country is a major European manufacturing, trade and logistics hub with strengths in pharmaceuticals, chemicals, machinery, diamonds, transport equipment and maritime logistics. The India-EU Free Trade Agreement, concluded in January 2026, is also expected to support greater market access and stronger bilateral commercial ties once implemented.According to an analysis by Rubix Data Sciences, India’s exports to Belgium declined from $10.1 billion in FY2022 to $6.3 billion in FY2025, before recovering 4.4% year-on-year to $6.6 billion in FY2026. Imports from Belgium fell from $10 billion in FY2022 to $6.4 billion in FY2026, including a 2.8% year-on-year decline during FY2026.Total bilateral goods trade contracted from $20 billion in FY2022 to $12.9 billion in FY2025 before marginally recovering to $13 billion in FY2026, representing 0.8% year-on-year growth. India’s trade balance also returned to a surplus of $0.2 billion in FY2026 after recording a deficit of $0.3 billion in FY2025.Diamonds continue to dominate two-way merchandise trade, accounting for 22% of India’s exports to Belgium and 29% of imports in FY2026. The trade reflects the complementary roles of Antwerp as a global diamond trading and distribution centre and India as a major hub for diamond cutting and polishing.Pharmaceuticals also feature prominently in bilateral trade, contributing 5% of India’s exports to Belgium and 2% of imports in FY2026. Belgium’s established pharmaceutical and life sciences ecosystem, combined with India’s large-scale manufacturing capabilities, provides opportunities for deeper cooperation across medicines, specialised formulations and healthcare value chains.Beyond diamonds and pharmaceuticals, India exports products including unmanufactured tobacco, crustaceans and flat-rolled steel to Belgium, while imports include air pumps, aluminium scrap and orthopaedic devices. The diversified trade basket offers further potential across marine products, engineering goods, industrial inputs, healthcare equipment, chemicals and automotive components.With bilateral engagement increasing, deeper value-chain integration across advanced manufacturing, pharmaceuticals, chemicals, engineering, automotive components, ports and logistics could help expand India-Belgium trade beyond traditional product categories and support a more resilient economic partnership.

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