Why in the News? : India-Portugal relations gained renewed attention with the 50th anniversary of the re-establishment of India-Portugal diplomatic relations in 2025, marked by President Droupadi Murmu’s State Visit to Portugal from 7-8 April 2025.

India-Portugal Relations Historical Background

India-Portugal relations have a history of over 500 years, beginning with Portuguese maritime trade in India and gradually evolving into modern diplomatic, economic and cultural cooperation. The relationship has passed through the phases of Portuguese colonial rule, post-independence tensions, restoration of diplomatic ties and renewed bilateral engagement.

Portuguese Arrival and Colonial Expansion

Vasco da Gama reached Calicut (Kozhikode), Kerala, in May 1498, establishing a direct maritime route between Europe and India through the Atlantic Ocean and around Africa.

• The new sea route gave Portugal direct access to India’s profitable spice trade and helped it emerge as a major colonial trading power.
• The Portuguese established a trading centre at Kollam in 1502 and subsequently acquired territories including Goa, Daman, Diu, Dadra and Nagar Haveli.
• Goa became the headquarters of Portuguese activities in the Orient, with Portuguese influence extending from Malacca in the east to Mozambique in the west.

From Independence to Normalisation

• Relations were initially cordial after India’s independence in 1947, and diplomatic relations were established in 1949.
• Relations deteriorated after Portugal, under dictator António Salazar, refused to surrender its remaining enclaves in India.
• India launched Operation Vijay, leading to the liberation of Goa, Daman and Diu on 19 December 1961, ending more than 450 years of Portuguese rule.
• Diplomatic relations were restored after Portugal’s Carnation Revolution of April 1974, which ended the Estado Novo regime.
• India and Portugal signed a treaty on 31 December 1974, under which Portugal recognised Indian sovereignty over Goa, Daman and Diu, Dadra and Nagar Haveli and related territories; the treaty came into force on 3 June 1975.

Revival of Bilateral Relations

After diplomatic relations were restored in 1975, India-Portugal relations gradually improved, with regular high-level visits and closer India-European Union engagement giving the relationship fresh momentum.

• 1990s: Visits by Indian Presidents in 1990, 1992 and 1998 helped restart regular political engagement.
• 2000: Prime Minister Atal Bihari Vajpayee visited Lisbon for the first India-European Union Summit, held under Portugal’s Presidency of the European Union, creating an important link between bilateral and India-European Union relations.
• 2007: Portuguese Prime Minister José Sócrates visited India for the 8th India-European Union Summit, further strengthening political engagement.
• 2017 onwards: The relationship gained stronger momentum with reciprocal visits by Prime Minister António Costa and Prime Minister Narendra Modi, followed by regular high-level exchanges and expansion into areas such as defence, technology, investment and culture.

Contemporary India-Portugal Relations

Today, India-Portugal Relations have moved beyond their historical legacy towards practical cooperation in political, economic, defence, technology and people-to-people ties.

Political and Diplomatic Relations

India and Portugal share warm political relations, supported by historical and cultural links and convergence on several international issues.

• Political convergence: Portugal regards India as a pluralistic democracy, major world economy and ancient civilisation, while both countries have sought to deepen their contemporary strategic partnership.
• Support for India: Portugal has consistently supported India’s aspirations for permanent membership of the United Nations Security Council (UNSC) and membership of the Nuclear Suppliers Group (NSG).
• United Nations cooperation: India and Portugal have supported each other’s candidatures for UNSC non-permanent seats, with India serving for 2021-22 and Portugal set to serve for 2027-28.

High-Level Engagement Since 2017

Frequent high-level exchanges have provided political momentum and expanded cooperation into new sectors.

• 2017: Prime Minister António Costa visited India in January, while Prime Minister Narendra Modi made the first standalone bilateral visit by an Indian Prime Minister to Portugal in June.
• 2020: Portuguese President Marcelo Rebelo de Sousa visited India, with 32 Memoranda of Understanding (MoUs)/outcomes announced across different areas.
• 2023: External Affairs Minister S. Jaishankar visited Portugal, marking the first visit by an Indian External Affairs Minister to Portugal in more than two decades.
• 2025: President Droupadi Murmu visited Portugal on 7-8 April 2025 for the 50th anniversary of restored diplomatic relations; it was the first State Visit by an Indian President to Portugal in 27 years.
• Recent engagement: Political exchanges continued through meetings between Prime Minister Narendra Modi and Portuguese Prime Minister Luís Montenegro in 2024, and visits by senior Portuguese and Indian ministers during 2024-26.

Economic and Trade Relations

Economic ties remain an important area of the partnership, with scope for greater trade, investment and industrial cooperation.

Trade Trends

India-Portugal bilateral trade stood at US$1.15 billion in FY 2025-26, with India maintaining a substantial export surplus.

Trade Basket

• India’s major exports: Textiles and apparel, agricultural products, metals, chemicals, plastics and rubber, footwear, machinery, leather products and vehicles.
• India’s major imports: Machinery and appliances, metals, minerals, plastics and rubber, chemicals, textiles and apparel, paper and pulp, wood and cork, and optical and precision instruments.

Investment

• Portugal ranked 52nd among sources of Foreign Direct Investment (FDI) into India, with cumulative inflows of US$126.45 million as of December 2025.
• Major companies include Visabeira, Efacec and Petrotec, along with Portind Shoe Accessories.
• Indian investments are estimated at up to US$475 million, with companies such as Generis, MGM Group, Sugee Group, Wipro, HCL and Tata Consultancy Services (TCS) having a presence.

India-Portugal Defence Cooperation

Defence cooperation has gradually expanded from institutional dialogue to naval engagement and regular exchanges between the two countries.

• India and Portugal signed a Memorandum of Understanding on defence cooperation in January 2017.
• Both countries conduct Joint Working Group meetings on Defence, with the 3rd meeting held in Lisbon in September 2024.
• Indian Navy training ship INS Tarangini visited Lisbon and Porto in 2022 during its Lokayan voyage, enabling professional interactions with Portuguese naval personnel and visits to naval ships and installations.

India-Portugal Science and Technology Cooperation

Science and technology has emerged as an important area for joint research, innovation and emerging technologies.

• The 1998 Agreement on Cooperation in Science and Technology established the Indo-Portuguese Joint Science and Technology Committee (JSTC).
• The 6th JSTC meeting in March 2023 reviewed ongoing cooperation and discussed a proposed €4 million joint research fund.
• Cooperation is being explored in green hydrogen, net-zero emission programmes for industry, young scientist exchanges and startups.
• The India-Portugal Technology Summit 2020 covered HealthTech, CleanTech, energy, climate change, WaterTech, AgriTech, space-ocean interactions and Information and Communication Technology (ICT).

India-Portugal Cultural and People-to-People Relations

Historical links have created a strong foundation for cultural exchanges, academic cooperation and wider people-to-people contacts.

• A Memorandum of Understanding on Cultural Cooperation was signed in 2017, supporting cultural performances, youth exchanges, literary programmes and art exhibitions.
• India became an Associate Observer in the Community of Portuguese Language Countries (CPLP) in 2021, opening greater scope for engagement with Portuguese-speaking countries.
• India has organised programmes under Azadi Ka Amrit Mahotsav, including Yoga, Ayurveda, literature, art and commemorations of Indian national figures.
• The 2025 commemorations included film festivals, cultural programmes and the Hindi translation of Fernando Pessoa’s ‘Mensagem’, highlighting the cultural dimension of bilateral ties.

Academic and Youth Exchanges

• Youth engagement: India and Portugal have conducted reciprocal youth exchanges under the bilateral framework, including visits by Indian and Portuguese youth delegations in 2018 and 2019.
• Know India and Know Goa: The Indian diaspora has participated in the Know India Programme (KIP) and Know Goa Programme (KGP).
• Centre for Indian Studies: The Centre for Indian Studies at the University of Lisbon, established in 2016, is Portugal’s first such centre dedicated to the study of India and promotes teaching and research on Indian culture and Hindi.

Indian Diaspora in Portugal

The Indian community provides an important human link between the two countries and supports bilateral economic and cultural engagement.

• Official figures indicate around 98,616 Indian nationals in Portugal, while an estimated 180,000 persons of Indian origin, including 14,125 Overseas Citizen of India (OCI) card holders, live there.
• The community is mainly concentrated around Lisbon, the Algarve region and Porto.
• In 2021, India and Portugal signed an agreement for the recruitment of Indian citizens to work in Portugal, making Portugal the first European Union country with which India signed a dedicated labour mobility agreement.
• The first India-Portugal Consular Dialogue was held in November 2024 to discuss issues concerning Indian citizens in Portugal.

India-Portugal Relations Significance

Portugal is important for India not only as a bilateral partner but also as a bridge to the European Union and the wider Portuguese-speaking world.

• European Union outreach: Portugal’s support strengthens India’s engagement with the European Union, including through its role in promoting India-European Union summits.
• Lusophone outreach: Portugal provides India with an important link to the Portuguese-speaking countries of the CPLP, particularly in Africa and other regions.
• Economic opportunities: Portugal offers opportunities for Indian companies in renewable energy, infrastructure, technology, tourism, defence and manufacturing.
• Technology and innovation: Joint work in green hydrogen, clean technologies, startups and advanced research supports India’s technology and sustainability objectives.
• Human mobility: The labour mobility agreement provides a structured channel for Indian workers to access employment opportunities in Portugal.
• Multilateral support: Portugal’s support for India’s UNSC reform aspirations and NSG membership strengthens convergence on global governance issues.

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India-Portugal Relations Challenges and Way Forward

The India-Portugal relations  has strong foundations, but its economic and strategic potential requires deeper and more sustained engagement.

• Expand trade: Bilateral trade remains modest relative to the size of the two economies and requires greater diversification and business-to-business engagement.
• Scale up investment: The relatively limited investment flows indicate scope for stronger cooperation in renewable energy, infrastructure, technology, defence and manufacturing.
• Deepen technology partnerships: The proposed joint research fund and cooperation in emerging technologies can be used to build long-term research and innovation partnerships.
• Strengthen people-to-people ties: Labour mobility, academic exchanges and diaspora engagement can further strengthen the social foundations of the relationship.
• Leverage Portugal’s wider networks: India can use its partnership with Portugal to deepen engagement with the European Union and Portuguese-speaking countries.