Defence to skill, slew of pacts on table as Merz and Modi meet today

Merz and Modi had spoken immediately after the German Chancellor was sworn in and met twice since then — on the sidelines of the G-7 leaders summit in Canada last June and on the margins of the G20 leaders summit in South Africa in November.

Significantly, Chancellor Merz’s visit sets the ball rolling for a lengthy engagement between India and the European Union, with EU leaders in India for the Republic Day celebrations, followed by the arrival of French President Emmanuel Macron in February for the Artificial Intelligence Impact summit in Delhi.

Later this year, Prime Minister Modi is expected to travel to Germany for inter-governmental consultations with a delegation of top Cabinet ministers.

Chancellor Merz, who will land in Ahmedabad during the early hours of Monday, will meet the Prime Minister at the Mahatma Mandir for bilateral talks.

According to sources, the bilateral strategic partnership will be the overarching focus of the conversation. There is a “high degree of mutual trust and confidence” that has guided political and defence ties between the two countries over the past 25 years, sources said. German technology being made available to India for its defence preparedness will also be part of the conversation, they said.

The two leaders will also discuss the war in Ukraine, in which Germany has been part of the Coalition of the Willing in Europe against Russia. Besides, the latest moves by US President Donald Trump to walk out of international organisations and disrupt a rules-based world order — as seen in the capture of Venezuelan President Nicolas Maduro and plans to seize control of Greenland — is expected to dominate the geopolitical conversations as India and Germany aim to fashion a multi-polar world.
They will discuss the China challenge as well, with India viewing Beijing as a strategic threat even as Germany views the Chinese as major trading partners.

The two leaders are also expected to discuss the India-EU Free Trade Agreement (FTA) negotiations, which are expected to be finalised by the time EU leaders Ursula von der Leyen, a former German Defence minister, and Antonio Costa, the former Portuguese PM, visit Delhi for the Republic Day parade and the India-EU summit on Jan 26-27.

Merz is expected to give a push to the negotiations, as the German automobile industry is believed to be interested in expanding its footprint in the Indian market. Sources described Germany as “a leading partner for India to achieve its Viksit Bharat goal”.

According to sources, the bilateral conversations will be based on four pillars:

Germany and Make in India: Over 2,000 German companies are active in India. “More German companies are keen to join the Make in India programme. The Green and Sustainable Development Partnership is contributing to national projects including Green Hydrogen Mission, Sustainable Urban Mobility, Metro projects and Solar Rooftop projects,” sources said.

Germany and Skill India: Germany is a leading international partner for skilling people. “Several German entities are partnering with Indian authorities and agencies in this regard,” sources said. The German government will help in setting up a skills development centre for professionals in the renewable energy sector.

Germany and Green India: German companies have established a presence in the Indian renewable energy, next-generation green infrastructure and related sectors. There will be growing collaboration in green hydrogen and its derivatives.

Next-gen technology partnership: Germany is an important source for high technology products after having liberalised their export controls, and a key partner in areas such as AI, semiconductor, digital, quantums, etc.

Mobility partnership and people-to-people ties will also be on the talks table with about 60,000 Indian students studying in Germany, especially for STEM subjects. Some new concessions for Indian students and their education prospects in Germany are on the anvil.

“Germany is also attracting skilled Indian professionals. The German government has welcomed this trend. These developments augur well for India,” sources said.

The two leaders will discuss UN reforms, too, as both countries are part of the G-4 grouping — including Japan and Brazil – that is lobbying for inclusion in the UN Security Council.