Context
Recently, German Chancellor Friedrich Merz concluded his two-day official visit to India, coinciding with 25 years of the India–Germany Strategic Partnership and 75 years of diplomatic relations. The visit took place ahead of the India–EU Summit scheduled later this month and amid heightened geopolitical churn marked by the Russia–Ukraine war and ongoing global supply-chain realignments.
As Germany is the largest economy in the European Union and India’s biggest trading partner in Europe, the visit carried strategic significance extending well beyond bilateral ties.
Key Outcomes of the Visit
The visit was marked by outcome-oriented engagement, with the signing of 19 agreements and Memoranda of Understanding (MoUs), reflecting deeper strategic, economic, and geopolitical convergence.
Strategic and Defence Cooperation
- Signing of a Joint Declaration of Intent (JDoI) on a Defence Industrial Cooperation Roadmap.
- Emphasis on co-development, co-production, technology partnerships, and faster defence export clearances.
- Ongoing cooperation in submarines, counter-UAS systems, helicopter platforms, joint military exercises, and security consultations.
Strategic relevance:
- Supports Atmanirbhar Bharat and defence indigenisation.
- Helps reduce India’s overdependence on Russian defence supplies.
- Combines India’s skilled workforce with Germany’s advanced defence technologies.
Higher Education and Global Skills Partnership
- Adoption of a comprehensive roadmap for higher education cooperation, with Germany invited to establish campuses in India under NEP 2020.
- Launch of a Global Skills Partnership (JDoI) to facilitate mobility of healthcare professionals.
- Expansion of German language education across schools, universities, and vocational institutions.
- Establishment of an Indo-German Centre of Excellence for Skilling in Renewable Energy.
Economic and Trade Relations
- Bilateral trade crossed USD 50 billion in 2024, accounting for over 25% of India–EU trade.
- Strong two-way investments in SMEs, startups, artificial intelligence, digitalisation, and supply-chain diversification.
- Institutional support through the German–Indian CEO Forum.
- Strong push for the early conclusion of the India–EU Free Trade Agreement (FTA).
Critical and Emerging Technologies
- Enhanced cooperation in semiconductors, critical minerals, telecommunications, AI, health, and the bioeconomy.
Key initiatives include:
- Semiconductor Ecosystem Partnership
- Critical Minerals Cooperation Framework
- Indo-German Digital Dialogue Work Plan (2026–27)
Strategic objective:
To build trusted supply chains, ensure digital sovereignty, and reduce dependence on China-centric technology ecosystems.
Climate, Energy, and Sustainability
- Establishment of an India–Germany Centre of Excellence in Renewable Energy.
- Collaboration on green hydrogen mega-projects, urban mobility, and climate action.
- Germany’s commitment of €10 billion till 2030 under the Green and Sustainable Development Partnership.
Indo-Pacific and Global Geopolitics
- Reaffirmation of commitment to a Free and Open Indo-Pacific, UNCLOS, and international law.
- Cooperation under the Indo-Pacific Oceans Initiative (IPOI).
- Discussions on key global issues, including:
- The Ukraine war (support for a UN Charter-based peace)
- The Gaza conflict (support for a two-state solution)
- Terrorism (strong condemnation of attacks in India)
- Renewed support for UN Security Council reforms and coordination through the G4 framework.
Conclusion
German Chancellor Merz’s visit underscores India’s rising importance in Europe’s strategic calculus. While cooperation across economic, defence, technological, and climate domains continues to deepen, the visit also highlighted the complexities of aligning interests in a rapidly evolving multipolar world. Overall, the outcomes significantly strengthen India–Germany relations and position India as a key pillar of Europe’s long-term engagement with the Global South and the Indo-Pacific.
