India and Germany reach agreements to strengthen their economic and security partnership

India and Germany Strengthen Economic and Security Partnership

On Monday, Indian Prime Minister Narendra Modi welcomed German Chancellor Friedrich Merz to Gujarat, aiming to advance economic and security collaboration between India and Germany, Europe’s largest economy.

The leaders convened in Gandhinagar, where both nations signed a series of agreements to deepen cooperation in defense, skill development, healthcare, and education. These initiatives reflect a shared goal to lessen reliance on China and reinforce bilateral economic links.

Following their discussions, Modi highlighted Germany’s status as India’s top trading partner within the European Union and expressed a mutual desire to broaden this relationship.

Both countries are launching new joint ventures in areas such as climate change, energy, and rare earth mineral extraction. They have also set out a plan to enhance collaboration between their defense industries, focusing on co-development and manufacturing.

“Our aim is to take India-Germany relations to new heights,” Modi stated.

While Germany and India have not historically maintained close defense ties, recent efforts have focused on strengthening this partnership. Notably, Germany’s Thyssenkrupp is expected to collaborate with Indian companies to construct six state-of-the-art conventional submarines in India, supporting New Delhi’s naval modernization drive.

Chancellor Merz emphasized the significant economic opportunities shared by both countries and noted ongoing efforts to deepen cooperation in security and defense policy.

“India is a preferred and strategic partner for Germany,” Merz remarked, according to an official translation. He also stressed the importance of finalizing a free trade agreement between India and the European Union to fully unlock the economic potential of their partnership.

Among the agreements signed was a pact simplifying the process for Indian professionals to work in Germany’s healthcare sector.

This visit marks Merz’s first trip to an Asian nation since assuming office last year and comes ahead of an upcoming India-EU summit, where leaders are expected to advance discussions on a long-awaited free trade agreement. India is eager to strengthen its economic ties with Europe, especially in light of U.S. tariffs reaching 50%.

During his stay, Merz visited the Sabarmati Ashram, once the residence of Mahatma Gandhi, and participated in the International Kite Festival along the Sabarmati riverfront, where both leaders joined in flying kites.

Accompanied by a substantial business delegation, Merz is also scheduled to travel to Bengaluru in southern India to engage with Indian and German leaders in business and technology sectors.