New Delhi:India and Germany on Monday finalized measures to deepen economic and security cooperation, including a roadmap for defense industrial cooperation, with Prime Minister Narendra Modi and Chancellor Friedrich Merz describing the two countries as natural partners in a world grappling with geopolitical turmoil and uncertainty.
Merz was accompanied by a large business delegation on his first visit to Asia after assuming office last year, stressing the importance of strengthening economic ties with India amid the unpredictability created by US trade policies. During talks with Modi in Ahmedabad, Merz underlined the importance of finalizing the India-European Union (EU) free trade agreement to boost trade and investment.
The two sides finalized 19 agreements, including a joint declaration of intent to strengthen bilateral defense industrial cooperation, and unveiled other measures such as the Track 1.5 Foreign Policy and Security Dialogue and a dialogue on the Indo-Pacific region that will see them work more closely on defense and security matters.
“The growing cooperation in defense and security is a symbol of our mutual trust and shared vision. I express my heartfelt gratitude to Chancellor Merz for simplifying the procedures related to defense trade,” Modi said at a media interaction, referring to Germany’s easing of stringent procedures for defense exports.
“We will also work on a roadmap to enhance cooperation between our defense industries, opening up new opportunities for co-development and co-production,” Modi said, speaking in Hindi.
Merz stressed the need to deepen the bilateral strategic partnership amid “profound geopolitical change and turmoil in the world”. “Europe and trans-Atlantic relations remain important to us. Today, we need to build a broader network of partnerships and we need to do it fast,” he said.
“India is a desired partner, a partner of choice for Germany, and the pre-conditions for a renewed and deepened and deepened partnership could not be more favorable.”
Modi also said that both countries value reliable and trustworthy partnerships in an uncertain global environment.
Both sides noted that India-Germany trade has exceeded $50 billion – almost a quarter of India’s total trade with the EU bloc – and pointed to the scope for doing more, particularly with the early conclusion of the India-EU trade agreement, which is expected to be finalized during the visit of the bloc’s top leadership to New Delhi later this month.
Modi said the presence of over 2,000 German companies in India reflects their “unwavering confidence” in the country and said both sides are working to create a secure and reliable supply chain. Technology cooperation has also been strengthened and both sides will set up centers of excellence to enhance cooperation in renewable energy.
“We are jointly pursuing new projects in areas such as climate, energy, urban development and urban mobility. The new mega project of green hydrogen involving companies from both the countries will prove to be a game-changer for the energy future,” Modi said, adding that special emphasis was being laid on migration, mobility and enhancing skills.
With Germany already home to 300,000 Indian expatriates and 60,000 students, an agreement on global skills partnership will facilitate the mobility of health care professionals. Merz said the number of skilled workers, including caregivers and nurses, from India is growing rapidly. Indians are among the most successful group of immigrants in Germany, he said, adding that the trend looks to be promoted in the future.
Merz also highlighted the need to intensify economic ties with India, the fastest growing economy in the G20 and an important partner in the Indo-Pacific, against the backdrop of a “resurgence of protectionism against free trade and open markets” – an apparent reference to the geo-economic churn caused by US trade policies.
Speaking in German, he said, “We are experiencing that the great powers are increasingly using supply chains and raw materials as instruments of power. Together we want to resist this. We reduce the one-sided dependence of our supply chains and this makes both our economies more resilient.”
The agreements finalized by both sides included a Joint Declaration of Intent to Strengthen Economic Cooperation by establishing a CEO Forum as part of the Joint Economic and Investment Committee, a Joint Declaration of Intent on Semiconductor Ecosystem Partnership, agreements for cooperation in critical minerals, telecommunications and sports, an agreement for green ammonia between India’s AM Green and Germany’s Uniper Global Commodities and an Indo-German roadmap on higher education.
Both sides also agreed to visa-free transit for Indian passport holders transiting through Germany, adoption of an action plan for 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 formation of a battery storage working group under the India-Germany Platform for Investment in Renewable Energy across the World. Also announced the inauguration.
Foreign Secretary Vikram Misri said Germany has taken an in-principle decision to exempt Indians from transit visas, although the facility will be introduced after the legal and other processes are completed by the German side. “Once implemented, it will make the travel of our people easier and convenient to a great extent,” he said.
Misri also noted Merz’s comments about closer defense cooperation between India and Germany, reducing India’s dependence on Russia for military hardware, and said New Delhi’s defense sourcing is driven entirely by national interests and not ideological issues. He also talked about “positive momentum” in the proposed €5-billion ( ₹German defense major ThyssenKrupp Marine Systems (TKMS) signed a submarine deal worth Rs 44,000 crore and said both sides are eyeing a “positive outcome” in technical and commercial talks.
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 peaceful resolution of all problems and disputes and supports all efforts being made in this direction.”
He said, “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 new thinking on great power politics and spheres of influence. He also referred to the public protests in Iran and called on the Iranian government and leadership to “protect its citizens rather than threaten them.”
