Opinion Delhi and Berlin seek common ground

India and Germany may differ on several issues, not least in their respective approaches to Russia in the wake of its 2022 invasion of Ukraine. Yet amid the geopolitical disruptions unleashed by the American president nearly a year into his tenure, both New Delhi and Berlin recognise the need to find common ground. For Germany, the challenges range from phasing out its energy dependence on Russia to the US role in Europe’s security architecture vis-à-vis Ukraine. India, meanwhile, has to contend with high US tariffs, sustained Western pressure to curb its purchase of Russian oil, and the problems posed by China in the neighbourhood and with respect to critical minerals and supply chains. Against this backdrop, German Chancellor Friedrich Merz’s visit to India this week, his first official trip to Asia, and the agreements signed during his bilateral meeting with Prime Minister Narendra Modi highlight the importance both countries attach to the strategic partnership.

Germany is India’s largest trading partner within the European Union but its trade volume with China is at least five times larger. In their joint statement, PM Modi and Chancellor Merz reiterated their support for concluding the India-EU Free Trade Agreement at the upcoming EU-India Summit to be held on January 27. With an India-US trade deal still uncertain, an India-EU FTA would strengthen India’s diversification and strategic depth across supply chains, services, the green transition and technology transfers. The joint statement also sets out, in detail, plans to deepen defence and security cooperation between the two countries. The timing could hardly be more consequential: Faced with an emboldened Vladimir Putin, Merz has pledged to make Germany Europe’s dominant military power, while India confronts terrorism and the China-Pakistan bloc. Another challenge for India is the follow-up. For example, a deal with the Germany company Thyssenkrupp for six diesel submarines with air-independent propulsion has been plagued with delays.

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Strengthening people-to-people ties was also a key focus of the Modi-Merz meeting, particularly in the area of skilled labour mobility, given Germany’s labour shortage and rising demand for healthcare professionals amid a shrinking workforce and ageing population. In this context, the Joint Declaration of Intent on the Global Skills Partnership is a welcome development. At a time when the US is increasingly tightening even legal pathways for skilled immigration, Germany — along with other EU countries — offers an attractive alternative. It is clear that India and Germany are determined to deepen their partnership, even as differences over Russia persist. The real test, however, will be implementing what is on paper effectively.