India and Germany have taken a significant step forward in deepening their strategic partnership, following high-level discussions between Prime Minister Narendra Modi and German Chancellor Friedrich Merz during the latter’s official visit to India from 12–13 January 2026. The visit, Chancellor Merz’s first to India and Asia since assuming office, underlined Germany’s growing strategic focus on India as a key partner in the Indo-Pacific region.

Milestone Year for Bilateral Relations
The bilateral engagement comes at a symbolic moment, marking 25 years of the India–Germany Strategic Partnership in 2025 and 75 years of diplomatic relations in 2026. Accompanied by senior ministers, officials, and 23 leading German CEOs, Chancellor Merz held delegation-level talks with Prime Minister Modi, focusing on defence, trade, technology, and sustainable development.

Defence Cooperation Moves to the Forefront
A major highlight of the discussions was the renewed push to strengthen defence and security cooperation, including closer collaboration in defence manufacturing. Both leaders welcomed the signing of a Joint Declaration of Intent to develop a Defence Industrial Cooperation Roadmap, aimed at promoting long-term partnerships, co-development, and co-production of defence platforms and equipment.

Submarine and Military Collaboration Gains Momentum
The leaders acknowledged ongoing cooperation in submarines, helicopter obstacle avoidance systems, and counter-unmanned aerial systems, signalling deeper industrial collaboration in sensitive defence areas. Germany’s intent to facilitate faster export clearances for defence equipment to India was seen as a key enabler for future deals, including potential multi-billion-dollar submarine-related projects.

Joint Exercises and Maritime Engagements
India and Germany reaffirmed their commitment to expanding military-to-military cooperation through joint exercises, training programs, and regular naval engagements. Germany also expressed its intent to participate in major Indian-led defence exercises in 2026, further strengthening operational coordination between the two countries.

Trade and Investment Continue to Scale Up
Economic cooperation featured prominently in the talks, with bilateral trade surpassing USD 50 billion in 2024, accounting for over a quarter of India’s trade with the European Union. Both leaders expressed confidence that trade and investment flows would continue to rise, supported by supply chain diversification and stronger business collaboration.

Focus on Technology and Industrial Growth
Prime Minister Modi invited German companies to expand their footprint in India, citing strong economic growth, a skilled workforce, and manufacturing capabilities. Chancellor Merz encouraged Indian firms to invest in Germany, particularly in high-technology sectors such as advanced manufacturing, semiconductors, and digital technologies.

Green Partnership and Climate Financing
The leaders reviewed progress under the Green and Sustainable Development Partnership, under which Germany has committed EUR 10 billion by 2030. Projects covering renewable energy, green hydrogen, urban mobility, and climate-resilient infrastructure have already received significant funding, reinforcing climate cooperation as a core pillar of bilateral ties.

Shared Positions on Global and Regional Issues
On regional and global matters, both sides reiterated their commitment to a rules-based international order, counter-terrorism cooperation, and a free and open Indo-Pacific. They also supported reforms of the United Nations Security Council to better reflect contemporary global realities.

Outlook: A Deeper, More Strategic Relationship
With defence industrial cooperation, economic engagement, and green initiatives gaining pace, the India–Germany relationship appears set to enter a new phase of strategic depth, marked by long-term collaboration across security, industry, and sustainability.

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