India-Germany ties get major boost as Modi, Merz hold wide-ranging talks amid $50 billion trade milestone

Defence and security emerged as a core pillar, with both leaders committing to deeper military-to-military cooperation, joint exercises and defence industrial collaboration.
German Chancellor Friedrich Merz and Prime Minister Narendra Modi holding talks in Ahmedabad.
German Chancellor Friedrich Merz and Prime Minister Narendra Modi holding talks in Ahmedabad.(Photo | PMO)
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AHMEDABAD: India and Germany on Monday signalled a major upgrade in their strategic partnership as Prime Minister Narendra Modi and German Chancellor Friedrich Merz held wide-ranging talks in Ahmedabad, deepening defence and technology cooperation, and aligning closely on global security, climate action and Indo-Pacific stability.

Modi and Merz reaffirmed their shared democratic values, commitment to a rules-based international order and mutual respect that underpins the partnership.

Placing the visit in a larger historical frame, Modi pointed out that India and Germany had completed 25 years of their strategic partnership last year and were celebrating 75 years of diplomatic relations this year. “These milestones are not merely markers of time,” he said, “they are symbols of our shared ambitions, mutual trust and steadily strengthening cooperation.”

On the economic front, the Prime Minister underlined that “close cooperation between the economies of countries like India and Germany is important for all of humanity,” revealing that bilateral trade had crossed the highest-ever level of USD 50 billion, accounting for over a quarter of India’s trade with the EU.

Modi noted that over 2,000 German companies have a long-standing presence in India, reflecting “their unwavering confidence in India and the immense opportunities that exist here,” a sentiment echoed during the India–Germany CEO Forum held earlier in the day.

Defence and security emerged as a core pillar, with both leaders committing to deeper military-to-military cooperation, joint exercises and defence industrial collaboration. They endorsed a Defence Industrial Cooperation Roadmap focused on co-development and co-production, while Modi welcomed Germany’s intent to participate in major Indian naval and air exercises and deploy a liaison officer at the IFC-IOR.

The day began at the Sabarmati Gandhi Ashram at 9 am, where Modi personally welcomed Merz, setting the tone with the moral gravitas of Mahatma Gandhi. The two leaders paid floral tributes to Gandhiji’s statue and visited Hridaykunj, underscoring India’s civilisational ethos before transitioning to contemporary global engagement.

From the ashram, Modi and Merz moved straight into Gujarat’s cultural heartbeat at the International Kite Festival. Welcomed by Chief Minister Bhupendra Patel, the leaders inaugurated the festival by touring the venue in an open jeep, flying a symbolic kite representing India–Germany friendship and taking in sweeping views of the Sabarmati riverfront an image-rich moment that blended soft power with diplomacy.

The focus then shifted from culture to commerce and geopolitics as both leaders reached Mahatma Mandir in Gandhinagar for a bilateral meeting. Trade, investment and strategic cooperation dominated discussions, followed by a joint press conference where Prime Minister Modi framed the visit as both historic and forward-looking.

Calling it a “matter of special joy” to welcome Chancellor Merz on Swami Vivekananda Jayanti, PM Modi said it was a “pleasant coincidence” that Swami Vivekananda himself had built a bridge of “philosophy, knowledge and spirituality” between India and Germany, adding that Merz’s visit was “giving that bridge new energy, renewed trust and scope.”

Noting that this was Merz’s first visit as Chancellor not only to India but to Asia, Modi said it was “a strong testament to the importance he places on relations with India,” and thanked him for his “personal attention and commitment,” reaffirming that “India is fully committed to further strengthening its friendship and partnership with Germany.”

Welcoming Merz in Gujarati spirit, the Prime Minister said, “In Gujarat, we say ‘Aavkaro Mitho Aapje Re’, which means to welcome someone with warmth and affection. With the same spirit and emotion, we extend a heartfelt welcome to Chancellor Merz to India.”

Technology and green cooperation emerged as key pillars, with Modi stating that technology ties between the two countries had grown stronger year after year and were now “clearly visible on the ground.” Highlighting shared priorities in renewable energy, he announced the establishment of an India–Germany Centre of Excellence to act as a common platform for “knowledge, technology and innovation.”

He further said joint projects in climate, energy, urban development and mobility were advancing rapidly, and described the new mega green hydrogen project involving companies from both countries as a “game-changer for the energy of the future.” Emphasising resilient global supply chains, Modi said MoUs signed during the visit would “give new momentum and strength” to cooperation.

People-to-people ties featured prominently in the Prime Minister’s remarks. He recalled how Rabindranath Tagore influenced Germany’s intellectual world, Swami Vivekananda inspired Europe, and Madame Cama unfurled India’s freedom flag in Germany for the first time. “Today, we are giving this historic connection the form of a modern partnership,” he said.

Special emphasis was placed on migration, mobility and skilling, with Modi noting that India’s young talent was making a “significant contribution” to Germany’s economy. He described the Joint Declaration of Intent on the Global Skills Partnership as a “symbol of trust,” particularly benefiting healthcare professionals.

The Prime Minister also announced concrete steps in sports cooperation to connect youth, unveiled a Comprehensive Roadmap on Higher Education, and invited German universities to open campuses in India. He welcomed Germany’s decision to offer visa-free transit for Indian citizens, calling it a boost to people-to-people ties.

Cultural and heritage cooperation also expanded, with Modi expressing pleasure over the German Maritime Museum joining the National Maritime Heritage Complex at Lothal in Gujarat, calling it a “historic step” linking maritime histories. He also highlighted the MoU between Gujarat Ayurveda University and Germany to deepen collaboration in traditional medicine.

On global issues, Modi said India and Germany “have always stood shoulder to shoulder,” citing successful trilateral development projects in Ghana, Cameroon and Malawi. He said both countries would continue supporting the Global South and announced the launch of a Consultation Mechanism for enhanced cooperation in the Indo-Pacific.

The leaders also discussed Ukraine and Gaza, with Modi reiterating that India “has always advocated for the peaceful resolution of all problems and disputes.” Stressing that terrorism remains a serious threat to humanity, he said India and Germany would continue to fight it together “with full determination.” The leaders strongly condemned terrorism “in all its forms,” denouncing attacks in Pahalgam and Delhi, and vowed intensified cooperation against terror networks, financing and safe havens. Modi also underlined the shared belief in reforming global institutions, pointing to joint G4 efforts for UN Security Council reform.

Separately, Indian Foreign Secretary Vikram Misri addressed the sensitive case of Baby Ariha Shah of Gujarat, stating that the Prime Minister had spoken to the German Chancellor on the issue. Misri said the matter had been under discussion with German authorities in Berlin and Delhi for a long time. “This was once a legal matter, but we believe it should be considered on humanitarian grounds,” he said, adding, “Only the family can understand the family’s distress.”

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