Finance
Germany’s Chancellor Friedrich Merz used his first official visit to India to signal that Berlin now sees New Delhi as a key partner in commerce, technology, and security in an increasingly broken global order. According to an article in India Narrative, the visit, which lasted two days and took place in Ahmedabad and Bengaluru, blended high symbolism with a packed agenda on defense, green transition, mobility, and a long-awaited India-EU trade agreement.
Merz was welcomed by Prime Minister Narendra Modi in Ahmedabad, where the programme combined political signals with cultural outreach. Bilateral meetings and press remarks at Gandhinagar’s Mahatma Mandir served as the formal backdrop for pronouncements on commerce, defense, and technology.
According to the report, economics was the primary focus of Merz’s visit, which was accompanied by a high-powered group of 23 German CEOs and industry leaders. Both leaders emphasized that Germany already accounts for more than a quarter of India’s trade with the EU, and that bilateral trade has reached new highs since 2024, underscoring the need for a more ambitious strategy.
Merz offered a clear signal of political support for the long-awaited India-EU Free Trade Agreement, stating that it may be finalized by the end of January. New Delhi and Berlin also hailed a new Joint Declaration of Intent to promote economic cooperation through a German Indian CEO Forum, pitching it as a permanent route to deepen investment and technological ties and resilient supply chains.
Security and defence industry collaboration received exceptionally high priority during a German leader’s visit to India. According to the story, Modi and Merz supported increased military-to-military interaction through joint exercises and senior-level exchanges, as well as a new plan for defense industrial cooperation centered on long-term technology partnerships and co-development of equipment in India.
The two countries discussed a multibillion-euro deal to jointly build submarines in India, aligning Germany’s defense export strategy with India’s Make in India and Atmanirbhar Bharat agendas. Aside from defense, the two sides signed or exchanged 19 Memorandums of Understanding and eight important announcements in renewable energy, digital technology, and innovation, all portrayed as tools for advancing green and sustainable development.
People-centric initiatives were another major feature, with India openly praising Germany’s decision to offer visa-free transit for Indian passport holders, which is likely to improve travel and business connectivity through German hubs. New agreements on higher education, skill development, renewable energy training, sports cooperation, marine heritage, and youth exchanges were highlighted as investments in the partnership’s future, according to the report.
Source: IANS
