India’s burgeoning defence trade with the European Union (EU) underscores the need for a comprehensive approach to bridge existing gaps and foster enduring collaboration. The evolving security landscape, coupled with the aftermath of the war in Ukraine, has necessitated reforms in the European defence industry, aligning its focus with diversification and prompting increased interest in India. While the current trajectory relies heavily on government-to-government (GtoG) dealings and bilateral trade, this article advocates for a strategic shift towards Small and Medium Enterprises (SMEs) to establish a more resilient and mutually beneficial defence relationship.