India-Germany Set to Deepen Ties with Multiple Agreements as Chancellor Merz Begins Two-Day Visit

New Delhi/Ahmedabad: India and Germany moved to strengthen their strategic partnership as German Chancellor Friedrich Merz began his two-day official visit to India. It is his first Asian country visit since assuming office. Two sides are set to sign several agreements and MoUs covering defence co-production, critical minerals, semiconductors, green energy, traditional medicine, skills mobility, health, education, and more, amid rising global geopolitical and economic uncertainties.

The focus is on enhancing supply chain resilience, defence industrial partnerships, clean energy transition, and emerging technologies.

Addressing a joint press conference with Prime Minister Narendra Modi, German Chancellor Friedrich Merz says,” We want to elevate the relations between India and Germany to an even higher level.You invited me to visit your home state of Gujarat. I express my heartfelt gratitude for this special gesture. It is a sign of very deep ties between our two countries, but it is also a testament of friendship towards me.”

Prime Minister Modi said that Merz’s choice of India as his first Asian destination reflects Berlin’s trust in New Delhi and India’s central role in Germany’s diversification strategy.

“We have decided to make our seamless economic partnership limitless, expanding cooperation beyond traditional sectors into strategic areas. A Joint Declaration of Intent in defence will support co-innovation and co-production, while new opportunities will open up in the space sector. We have also agreed to transform trusted partnerships into technology partnerships, deepening cooperation in semiconductors and other critical and emerging technologies, including power electronics, biotech, fintech, pharmaceuticals, quantum computing and cybersecurity,” He added. 

An MoU on defence industrial cooperation was signed to promote co-development, co-production, innovation, and stronger global supply chains, bolstering indigenous manufacturing.

German Chancellor Friedrich Merz said the global order is being reshaped by great power politics and competing spheres of influence, requiring countries to brace for heightened geopolitical challenges. He said India and Germany have agreed to deepen defence industrial cooperation, underscoring its strategic significance. An MoU has been signed covering joint development, production, innovation and the strengthening of global supply chains.

India-EU Free Trade Agreement Push

Prime Minister Narendra Modi said India–Germany economic ties have reached a new high, with bilateral trade surpassing the $50 billion mark. He noted that more than 2,000 German companies have a long-standing presence in India, reflecting sustained confidence in the Indian economy and the scale of opportunities available.

Highlighting the broader relationship, Modi said India and Germany completed 25 years of strategic partnership, and this year, we are also celebrating 75 years of our diplomatic relations. These milestones are not merely achievements of time. They are symbols of our shared ambitions, mutual trust, and ever-strengthening cooperation. 

Against this backdrop of expanding trade and investment, both sides underlined the need to accelerate efforts towards concluding a Free Trade Agreement between India and the European Union. German Chancellor Friedrich Merz said discussions with Prime Minister Modi and leading CEOs focused on fully tapping the partnership’s economic potential, adding that the proposed FTA could unlock new avenues for trade and investment. He said the President of the European Union is expected to visit India by the end of the month to advance the negotiations.

Indo-Pacific and Global Issues

On global issues, the leaders discussed conflicts in Ukraine and Gaza, terrorism, and the need for Indo-Pacific consultations (via a new mechanism), as well as comprehensive reform of global institutions for greater representation.

Officials described the agreements as a long-term framework to broaden cooperation across economic, strategic, and people-to-people domains, injecting fresh momentum into the partnership.

This visit, starting in Gujarat with cultural engagements like the Sabarmati Ashram visit and International Kite Festival, underscores the warmth and strategic depth of India-Germany relations at a time of rapid global change.

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Shoaibur Rahman

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