Reinforcing old ties to face new challenges
India, Jan. 12 -- As the world confronts disruptive geopolitical and economic changes, India and Europe are actively working toward stability and strengthening forward-looking partnerships. In this context, India has engaged with European counterparts both at the multilateral level and through deepening bilateral ties with key partners such as Germany.
The German Chancellor, Friedrich Merz, arrives today on his first official visit to India. This visit is significant in more than one respect. It comes at a time of global uncertainty and geopolitical flux, and it offers both countries an opportunity to reaffirm their shared commitments to democratic norms, global cooperation, and a rules-based international order. Merz will not be in New Delhi, and instead have his main meetings in Ahmedabad. He will also visit Bengaluru, a symbol of the technological and innovation partnership.
Unlike engagements under the regular Indo-German Intergovernmental Consultations (IGC), a biennial framework that has been in place since 2011, this visit is a standalone political visit, similar to the approach taken by former Chancellor Olaf Scholz, during his tenure. This allows space for focused bilateral dialogue outside the formal IGC calendar while building on the deep agenda that defines the relationship.
Merz's visit carries symbolic weight, as it follows the silver jubilee of the Indo-German Strategic Partnership, formally launched in 2000. Over the last 25 years, the relationship has matured into a comprehensive collaboration spanning trade, technology, climate action, education, defence, and people-to-people links. Although Merz and Prime Minister (PM) Narendra Modi have not previously met in India, they have interacted during the G7 summit in Canada in 2025. Their dialogue reflects ongoing efforts to align priorities and reinforce mutual trust amid complex global dynamics.
In the current global context, marked by disruptions in trade, tensions in the international rules-based order, and shifting geopolitical alignments, this visit presents an opportunity for India and Germany to articulate an alternative model of cooperation, grounded in democratic values and sustainable development. Such a model could be in contrast to polarising pressures and underscores the role of like-minded partners in keeping global governance strong and inclusive.
Economic cooperation is a central pillar of Indo-German relations. Germany remains India's largest trading partner within the European Union (EU), with bilateral commerce exceeding $33 billion in 2024. This robust trade includes substantial exchanges in goods such as machinery, automobiles, chemicals, and pharmaceuticals. Services trade has grown to $17 billion.
Investment flows further strengthen this economic partnership. Germany is among the top ten investors in India, bringing capital and expertise to sectors critical for industrial growth and diversification. Indian companies, for their part, are also expanding in Germany, particularly through acquisitions and the establishment of research, development, and innovation centres aimed at embedding India deeper into global value chains.
Against this backdrop, both sides are exploring how to leverage India's emergence as a global manufacturing hub -- with a strategic eye on exports to ASEAN and African markets -- as well as Germany's industrial strengths. Enhanced trade and investment cooperation could also contribute to larger efforts to revitalise EU-India trade negotiations that have been on for years. Environmental sustainability remains a shared priority. The Indo-German Green and Sustainable Development Partnership (GSDP) provides an umbrella for cooperation on climate action, clean energy, and sustainable infrastructure. Joint initiatives include collaboration on green hydrogen, clean mobility, and renewable energy deployment, areas that both countries view as essential to meeting their climate goals.
German support for India's renewable energy transition and the development of green infrastructure, such as metro systems and urban environmental projects, is widely recognised. These efforts align with India's own climate targets and contribute to sustainable development at scale. Technology and innovation cooperation have become increasingly dynamic. Over decades, collaborative frameworks, supported by research exchanges, industrial partnerships, and targeted programmes such as Make in India Mittelstand, have facilitated technology transfer and industrial modernisation; the 2 billion euros of foreign direct investment (FDI) under this programme merits special note. The broader trend of deepening technology ties reflects a shared ambition to nurture innovation ecosystems in both countries.
Discussions now extend to areas such as artificial intelligence, smart cities, digital infrastructure, and start-ups. These sectors offer fertile ground for partnership through joint R&D, commercial ventures, GCCs and academic cooperation.
The Migration and Mobility Partnership Agreement (MMPA) has helped expand legal pathways for skilled migration and study opportunities, bolstering people-to-people connections. The number of Indian students in Germany has grown significantly, contributing to cross-cultural engagement and filling skills needs in German industries.
Defence cooperation, historically modest, is also gaining traction. German involvement in India's defence ecosystem, particularly in projects like submarine construction and maritime security collaboration, signals growing strategic alignment. While specific contract details remain under negotiation, the inclusion of defence issues in bilateral discussions indicates a mutual interest in expanding security cooperation in response to regional challenges.
Parallel to Indo-German ties, India's engagement with the EU is also deepening. EU leadership, including the European Commission President and European Council President, is slated to be Chief Guest at India's Republic Day 2026, highlighting the broader India-Europe strategic partnership and renewed focus on trade, economic cooperation, and geopolitical dialogue.
In a world marked by instability, the India-Germany strategic dialogue and partnership offer a stabilising influence grounded in shared values, mutual respect, and long-term cooperation. Chancellor Merz's visit provides a platform to reinforce this partnership and articulate a joint vision for economic resilience, technological progress, environmental sustainability, and a stronger international order. By advancing collaboration across multiple domains, India and Germany can contribute to a more predictable, inclusive, and prosperous global landscape....
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