PM Modi, Merz hold bilateral talks: From defence to visa-free transit, India & Germany push forward

“As Chancellor, this is his first visit not only to India, but to Asia. It is a strong testament to the importance he places on relations with India… India is fully committed to further strengthening its friendship and partnership with Germany,” he said.

Outlining the common themes, Merz said: “The fundamental political values that unite us, the enormous economic opportunities that are opening up before us, and our ever-closer inter-connectedness with regard to skilled workers and education. Especially in light of the profound geopolitical changes and upheavals in the world, we share a fundamental interest in deepening our strategic partnership. As important as Europe and transatlantic relations remain for us Germans, we must now forge a broader network of partnerships, and do so quickly and with long-term commitment.”

Workers arrange a welcome hoarding of Prime Minister Narendra Modi and Vice Chancellor of the Federal Republic of Germany Friedrich Merz ahead of their scheduled visit at International kite festival, in Ahmedabad on Thursday. (Express Photo by Bhupendra Rana)

“India is a preferred partner for Germany in this regard. The conditions for our renewed and deepened partnership could hardly be better than they are at present. Germany, as the most populous and economically strongest state in the European Union, and India, as the world’s largest democracy, are united by fundamental values. The highly dynamic India and the technologically leading country Germany share essential interests. This is precisely what we are building on,” he said.

Merz, who arrived in the early hours of Monday, visited the Sabarmati Ashram and engaged in kite-flying with Modi.

While there was no announcement on any progress in the submarine deal, Modi said: “The growing cooperation in defence and security is a symbol of our mutual trust and shared vision. I express my heartfelt gratitude to Chancellor Merz for simplifying the processes related to defence trade. We will also work on a roadmap to enhance cooperation between our defence industries, which will open up new opportunities for co-development and co-production.”

“We don’t always agree on every issue. We don’t even agree on everything with most of our European neighbours. But the areas of agreement we share are nevertheless very significant. That is why we also want to cooperate more closely on security policy. We are conducting joint exercises with our Air Force and Navy to ensure security in the Indo-Pacific region. We are carrying out military port visits and coordinating with each other in new consultation formats. Against this backdrop, it is of particular strategic importance that we deepen the cooperation between our defence industries. This strengthens both sides. It also helps to reduce India’s dependence on others, such as Russia,” Merz said.

The joint statement said the leaders welcomed the signing of a joint declaration of intent to develop a defence industrial cooperation roadmap to promote “long-term industry-level collaboration, including technology partnerships, co-development and co-production of defence platforms and equipment. India welcomed Germany’s efforts to facilitate expeditious export clearances of defence equipment.”

Importantly, it said that both leaders lauded the continuing cooperation in “submarines, obstacle avoidance system for helicopters and counter unmanned aerial systems”, and looked forward to enhanced defence industrial collaboration by building a deepened relationship based on shared goals and complementarity of strength — “skilled workforce and competitive costs from India, and high technologies and investment from Germany”.

Modi said the comprehensive roadmap on higher education will give a “new direction to our partnership in the education sector”, and invited German universities to open campuses in India. He said the joint declaration of intent on the “global skills partnership is a symbol of this trust” and will especially facilitate the mobility of healthcare professionals.

The joint statement said the leaders also welcomed the signing of the joint declaration of intent to “establish an Indo-German Centre of Excellence for Skilling in Renewable Energy”, which will strengthen cooperation in curriculum development for the Indian and German job market, cooperation with German and Indian industry and training in the renewable energy sector.

“In this context, both sides remain committed to the goal of expanding the teaching of the German language in India, including in secondary schools, universities and vocational education centres,” it said.

The statement said the leaders welcomed the “sustained growth in bilateral trade and investment and noted that bilateral trade reached a record high in 2024, with the positive trend continuing through 2025. India-Germany bilateral trade in goods and services surpassed US$ 50 billion in 2024, amounting to over 25% of India’s trade with the EU. The leaders noted the strong two-way investments between India and Germany and the positive impacts of such investments in diversifying global supply chains. They reaffirmed their commitment to fully realising untapped economic potential, including through SMEs, startups, digitalisation, AI, and innovation-driven enterprises. Prime Minister Modi invited German companies to invest/ expand businesses in India to benefit from its strong economic growth, business-friendly environment, large highly-skilled workforce and immense opportunities to scale up operations. Chancellor Merz recommended Germany as an attractive location for investment by Indian companies.”

With the meeting coming ahead of the EU leaders’ visit for the Republic Day celebrations, and the India-EU leaders’ summit on January 27, Modi and Merz “reiterated their support for the conclusion of the India–EU Free Trade Agreement as a key outcome of the upcoming EU-India Summit, which will facilitate trade flows and inject further momentum into German-Indian economic relations”.

The two sides also signed a joint declaration of intent on strengthening bilateral economic cooperation through the German-Indian CEO Forum, which will further promote business and industry collaboration.

The leaders welcomed progress in cooperation in critical and emerging technologies, including “semiconductors, critical minerals, digitalisation, telecommunications, health and bioeconomy”. “They welcomed the strong willingness on both sides to establish an institutional dialogue across the semiconductor value chain through a new joint declaration of intent on semiconductor ecosystem partnership,” the statement said.

Recognising the importance of resilient supply chains, the leaders “noted the progress on fostering collaboration in the field of critical minerals through a joint declaration of intent on critical minerals cooperation,” it said.

Regarding the Indo-German digital dialogue, the leaders noted the finalisation of its work plan for 2026–27 and emphasised the importance of collaboration on internet & data governance, AI, semiconductors and Industry 4.0, and emerging technologies. They acknowledged the “signing of a JDoI on cooperation in the field of telecommunications,” it said.

“In the field of renewable energy, India and Germany share similar priorities. To strengthen cooperation in this area, we have decided to establish the India-Germany Centre of Excellence. It will serve as a shared platform for knowledge, technology, and innovation,” Modi said. He said they are “jointly advancing new projects in areas such as climate, energy, urban development and urban mobility. The new mega project in green hydrogen involving companies from both countries will prove to be a game-changer for the energy of the future…India and Germany are working together to build secure, trusted and resilient supply chains. The MoUs being signed today on all these areas will give new momentum and strength to our cooperation.”

“The leaders reaffirmed their commitment to a free and open Indo-Pacific, respect for international law including UNCLOS, and announced a new bilateral Indo-Pacific consultation mechanism. India welcomed Germany’s continued and growing engagement in the region, including activities under the capacity building and resource sharing pillar of the Indo-Pacific Oceans Initiative co-led by India and Germany,” the joint statement said.

They also discussed Ukraine and Gaza. “The two leaders reiterated their concern over the ongoing war in Ukraine… They expressed support for efforts to achieve a comprehensive, just and lasting peace in Ukraine in accordance with international law and the principles of the UN Charter,” the statement said.

“We are committed to an international order in which we can live freely and securely; because the world is currently reorganising itself, even as we meet here today. It is increasingly characterised by great power politics and thinking in terms of spheres of influence. Harsh winds are blowing, against which we must arm ourselves together. Russia’s war of aggression against Ukraine is perhaps the most drastic expression of this upheaval. In this new world, we will jointly uphold the values and interests that unite us,” Merz said.

On Gaza, the joint statement said the leaders “reaffirmed their readiness to support efforts towards just and durable peace and reiterated their call for a just, lasting and comprehensive resolution of the conflict in the Middle East in the form of a negotiated two state solution.”

It said the leaders “condemned in the strongest terms the terrorist attack in Pahalgam… and the terror incident in Delhi on November 10, 2025.”

About the UNSC reforms, Modi said, “India and Germany agree that reforming global institutions is crucial for addressing global challenges. Our joint efforts through the G4 group to reform the UNSC are a testament to this shared belief.”

Merz will spend Tuesday in Bengaluru, where he will visit the Indian Institute of Science and German firm Bosch.