NEW DELHI: India and Germany on Monday finalised measures to deepen economic and security cooperation, including a roadmap for defence industrial collaboration, with Prime Minister Narendra Modi and Chancellor Friedrich Merz describing the two countries as natural partners in a world grappling with geopolitical upheaval and uncertainty.
Merz, on his first visit to Asia since taking office last year, was accompanied by a large business delegation to emphasise the importance of bolstering economic ties with India amid unpredictability created by US trade policies. During talks with Modi in Ahmedabad, Merz underscored the importance of finalising the India-European Union (EU) free trade agreement to drive trade and investment.
The two sides finalised 19 agreements, including a joint declaration of intent on strengthening bilateral defence industrial cooperation, and unveiled other measures such as a Track 1.5 foreign policy and security dialogue and a dialogue on the Indo-Pacific region that will see them working more closely on defence and security matters.
“The growing cooperation in defence and security is a symbol of our mutual trust and shared vision. I express my heartfelt gratitude to Chancellor Merz for simplifying the processes related to defence trade,” Modi told a media interaction, referring to Germany’s easing of strict procedures for defence exports that has benefited India in recent years.
“We will also work on a roadmap to enhance cooperation between our defence industries, which will open up new opportunities for co-development and co-production,” Modi said, speaking in Hindi.
Merz emphasised the need to deepen the bilateral strategic partnership amid “profound geopolitical changes and upheavals in the world”. He said, “Europe and trans-Atlantic relations remain important to us. Today, we need to forge a broader network of partnerships and we need to do so swiftly.
“India is a desired partner, a partner of choice for Germany, and the preconditions for a renewed and deepened and intensified partnership couldn’t be more favourable.”
Modi too noted that both countries value reliable and trusted partnerships in an uncertain global environment.
Both sides noted that India-Germany trade has surpassed $50 billion – about a quarter of India’s total trade with the EU bloc – and pointed to the scope to do more, especially with the speedy conclusion of the India-EU trade deal, which is expected to be finalised during the visit of the bloc’s top leadership to New Delhi later this month.
Modi noted that the presence of more than 2,000 German companies in India reflects their “unwavering confidence” in the country and said the two sides are working to build secure and trusted supply chains. Technology cooperation too has grown stronger and the two sides will establish a centre of excellence to drive cooperation in renewable energy.
“We’re jointly advancing new projects in areas such as climate, energy, urban development, and urban mobility. The new mega project in green hydrogen involving companies from both countries will prove to be a game-changer for the energy of the future,” Modi said, adding that there is special emphasis on enhancing migration, mobility and skilling.
With Germany already home to 300,000 Indian expatriates and 60,000 students, an agreement on a Global Skills Partnership will facilitate the mobility of healthcare professionals. Merz said the number of skilled workers, including care-givers and nurses, needed from India is increasing rapidly. Indians are among the most successful group of immigrants in Germany, which wants to promote this trend in future, he said.
Merz also highlighted the need to intensify economic relations with India, the fastest growing economy in the G20 and a pivotal partner in the Indo-Pacific, against the backdrop of the “resurgence of protectionism directed against free trade and open markets” – an apparent reference to the geoeconomic churn caused by US trade policies.
“We are experiencing that great powers use supply chains and raw materials increasingly as instruments of power. Together we want to oppose this. We reduce unilateral dependencies of our supply chains and that makes both our economies more resilient,” he said, speaking in German.
Among the agreements finalised by the two sides were a joint declaration of intent on strengthening economic cooperation by establishing a CEOs Forum as part of a joint economic and investment committee, a joint declaration of intent on a Semiconductor Ecosystem Partnership, pacts for cooperation in critical minerals, telecommunications and sport, an offtake agreement for green ammonia between India’s AM Green and Germany’s Uniper Global Commodities, and an Indo-German roadmap on higher education.
The two sides also announced visa-free transit for Indian passport holders transiting through Germany, adoption of a work plan for a bilateral digital dialogue during 2025-2027, new funding commitments of €1.24 billion under the bilateral Green and Sustainable Development Partnership to support projects in renewable energy, green hydrogen, and climate resilient urban infrastructure, and the launch of a battery storage working group under the India-Germany Platform for Investments in Renewable Energy Worldwide.
Foreign secretary Vikram Misri said Germany has made an in-principle decision to exempt Indians from transit visas, though the facility will be introduced after the completion of legal and other processes by the German side. “Once it is implemented, it will considerably ease and facilitate the travel of our people,” he said.
Misri also referred to Merz’s remarks about closer defence cooperation between India and Germany leading to India’s reduced dependence on Russia for military hardware and said New Delhi’s defence sourcing is driven solely by national interests and not ideological issues. He also spoke about “positive momentum” in a proposed €5-billion ( ₹44,000 crore) submarine deal with German defence major ThyssenKrupp Marine Systems (TKMS) and said both sides are eyeing a “positive outcome” in technical and commercial negotiations.
Modi and Merz also discussed global issues such as the Russia-Ukraine conflict, the situation in Gaza and developments in the Indo-Pacific. Modi referred to the crises in Ukraine and Gaza and said: “India has always advocated for the peaceful resolution of all problems and disputes, and supports all efforts being made in this direction.”
He added, “We agree that terrorism is a serious threat to all humanity. India and Germany will continue to fight it together with full determination.”
Merz described Russia’s war of aggression against Ukraine as the “most drastic expression” of great power politics and new thinking on spheres of influence. He also referred to the public protests in Iran and called on the Iranian government and leadership to “protect their citizens instead of threatening them”.