India–Germany Enter a New Strategic Phase: From Partnership to Powerhouse Cooperation

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German Chancellor Friedrich Merz with Indian leadership during his official visit marking a new phase in India–Germany strategic relations.


German Chancellor Friedrich Merz’s first official visit to India marks a decisive moment in bilateral relations, coinciding with 25 years of the India–Germany Strategic Partnership and 75 years of diplomatic ties. The timing is geopolitically significant, coming just ahead of the visit of European Union leaders for India’s Republic Day celebrations and the upcoming India–EU Summit. Together, these developments underline India’s growing centrality in Europe’s strategic calculus and Germany’s intent to elevate its engagement with New Delhi beyond trade into a comprehensive strategic partnership.

The visit was notable for its outcome-driven diplomacy. With the signing of 19 agreements and memoranda of understanding (MoUs), India and Germany signalled a shared intent to align more closely on defence, technology, climate action, skills, and global governance.


The breadth and depth of these outcomes indicate that the relationship is transitioning from cooperation to co-creation.

Key Outcomes of the Visit

The 19 bilateral pacts signed during Chancellor Merz’s visit span several strategic domains. These include defence industrial cooperation, higher education and global skills, critical minerals and semiconductors, Indo-Pacific dialogue, renewable energy and green hydrogen, and digital and telecommunications cooperation. A particularly people-centric outcome was the announcement of a visa-free transit regime for Indian passport holders transiting through German airports, reflecting growing trust and mobility between the two societies.

Collectively, these agreements reinforce strategic convergence at a time of global supply chain disruptions, energy transition challenges, and intensifying geopolitical competition.


Strategic and Defence Cooperation: A New Pillar

Defence cooperation emerged as a cornerstone of the visit. The Joint Declaration of Intent (JDoI) on a Defence Industrial Cooperation Roadmap lays the foundation for co-development and co-production of defence platforms, deeper technology partnerships, and faster export clearances from Germany. This framework aligns closely with India’s Atmanirbhar Bharat initiative and its pursuit of strategic autonomy.

Ongoing defence collaboration already spans submarines, obstacle avoidance systems for helicopters, Counter-Unmanned Aerial Systems (C-UAS), joint air force and naval exercises, port visits, and new security consultation formats. Strategically, this partnership helps India reduce long-standing dependence on Russian defence supplies while leveraging Germany’s advanced technology and capital alongside India’s skilled workforce and cost advantages.

The defence partnership also holds significance for India’s maritime security, particularly in the Indian Ocean region, amid China’s expanding naval footprint.

Higher Education and Global Skills Partnership

Human capital cooperation forms another major pillar of the evolving relationship. The two sides unveiled a comprehensive roadmap on higher education, with India inviting German universities to establish campuses in the country under the National Education Policy (NEP) 2020 framework. This move could significantly internationalise India’s higher education ecosystem.

The Global Skills Partnership JDoI focuses on facilitating the mobility of healthcare professionals, addressing demographic and workforce challenges in Germany while creating high-quality employment pathways for Indian talent. Proposals to expand German language teaching across schools, universities, and vocational institutions aim to make skill mobility smoother and more inclusive.

A new Indo-German Centre of Excellence for Skilling in Renewable Energy was also announced, focusing on curriculum development, industry collaboration, and job-market-oriented training—directly linking education with the green transition.


Economic and Trade Relations: Towards an FTA Boost

Germany is India’s most important economic partner within the European Union. Bilateral trade crossed USD 50 billion in 2024, accounting for over a quarter of India–EU trade. Strong two-way investments support supply chain diversification, SMEs, startups, digitalisation, artificial intelligence, and innovation.

The strengthening of institutional mechanisms such as the German–Indian CEO Forum underscores the focus on private-sector-led growth. Importantly, Germany has emerged as a strong advocate for the early conclusion of the India–EU Free Trade Agreement, widely seen as a key deliverable of the forthcoming EU–India Summit. An FTA would help align regulatory frameworks, boost trade diversification, and anchor long-term economic cooperation.

Critical and Emerging Technologies

Recognising the strategic importance of technology, both countries agreed to deepen cooperation in semiconductors, critical minerals, telecommunications, digitalisation, AI, health, and the bioeconomy. Institutional steps include a JDoI on a Semiconductor Ecosystem Partnership, a JDoI on Critical Minerals Cooperation, an Indo-German Digital Dialogue Work Plan (2026–27), and a JDoI on Telecommunications.

These initiatives aim to build trusted supply chains and enhance digital sovereignty, reducing dependence on China-dominated ecosystems. For India, they directly support ambitions in electronics manufacturing, Industry 4.0, and becoming a global technology hub.



Climate, Energy and Sustainability

Climate and energy cooperation remains a defining feature of India–Germany ties. The visit saw the establishment of an India–Germany Centre of Excellence in Renewable Energy, alongside joint projects in climate action, urban development, sustainable mobility, and a mega green hydrogen initiative.

This cooperation aligns with shared goals of clean energy transition, climate diplomacy, climate finance, and technology transfer. Germany’s commitment of up to €10 billion till 2030 under the Green and Sustainable Development Partnership further reinforces India’s long-term energy security and decarbonisation efforts.

Indo-Pacific and Global Geopolitics

On geopolitical issues, both sides reaffirmed their commitment to a Free and Open Indo-Pacific, adherence to UNCLOS, and respect for international law. Germany’s growing engagement under the Indo-Pacific Oceans Initiative (IPOI), co-led with India, reflects Europe’s increasing strategic presence in the region.

Global issues discussed included support for a just and lasting peace in Ukraine under the UN Charter, a negotiated two-state solution for the Gaza conflict, and strong condemnation of terrorist attacks in Pahalgam and Delhi. Both countries also renewed their commitment to multilateralism and UN Security Council reforms, continuing coordination through the G4 grouping with Japan and Brazil.


Current State of India–Germany Relations

India–Germany relations are among the most institutionalised in Europe–India ties, anchored by the Inter-Governmental Consultations (IGC) mechanism. Over 2,000 German companies operate in India, supporting nearly four lakh jobs, while Indian investments in Germany have crossed €6.5 billion.

Flagship projects such as the Project 75I submarine programme, expanding science and technology cooperation into quantum, cybersecurity, biotech and AI, and robust mobility frameworks underline the depth of engagement. With around 2.8 lakh Indians residing in Germany and over 42,000 Indian students, people-to-people ties are a major strength.

Challenges and the Way Ahead

Despite the momentum, challenges remain. The submarine deal under Project 75I awaits a concrete breakthrough and requires operationalisation through flagship co-production projects. Divergences on certain geopolitical issues persist, necessitating deeper Indo-Pacific coordination. Translating MoUs into time-bound outcomes—especially in semiconductors and critical minerals—will be crucial.

Aligning EU regulatory standards with Indian market realities and fast-tracking the India–EU FTA are essential next steps. In education and skills, expanding German institutional presence in India and ensuring ethical, mutually beneficial mobility frameworks will determine long-term success.



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