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India and Germany are poised to elevate their strategic partnership during Prime Minister Narendra Modi’s meeting with Chancellor Friedrich Merz in Ahmedabad.
Why Ahmedabad?
The choice of Ahmedabad, Gujarat’s commercial hub, signals Berlin’s intent to deepen political and economic ties beyond the traditional capitals. It also showcases India’s ambition to attract high‑profile foreign delegations to its fast‑growing regions.
Key agenda items
- Boosting bilateral trade and investment, especially in high‑tech, renewable energy and digital services.
- Expanding defence cooperation, including potential submarine deals and naval liaison offices.
- Coordinating on global security challenges such as the Ukraine conflict and Indo‑Pacific stability.
Trade figures that matter
In fiscal year 2024‑2025, total India‑Germany trade reached US$51.23 billion, making Germany the largest European trading partner for New Delhi. Service trade surged 12.5 % to a record US$16.65 billion. German firms have invested US$15.40 billion in India since 2000, with more than 2,000 companies operating on the ground.
Defence and security collaboration
Recent liberalisations in German export controls have accelerated arms sales to India. Both sides maintain a Joint Counter‑Terrorism Working Group and Germany plans to station a naval liaison officer at India’s Integrated Fisheries‑Coastal Information Centre (IFC‑IOR) in the Indian Ocean region.
Negotiations are under way for a €5 billion deal to supply six next‑generation submarines, led by ThyssenKrupp Marine Systems and Mazagon Dock Shipbuilders, marking one of the biggest “Make in India” projects to date.
Beyond economics – green energy and education
The two governments launched a “India‑Germany Green Hydrogen” roadmap in 2024, aiming to develop production, export and usage pipelines for low‑carbon hydrogen. Educational exchanges, joint research programmes and cultural events are also slated for expansion.
Strategic backdrop
The meeting occurs amid rising global tensions, with the United States tightening trade tariffs on Indian goods and expanding its military presence in the Indo‑Pacific. Strengthening the India‑Germany axis offers New Delhi a diversified portfolio of partners beyond the traditional US‑centric approach.
Looking ahead
With the 25‑year strategic partnership now entering its third decade, officials expect a refreshed inter‑governmental consultation mechanism in New Delhi later this year, paving the way for more joint ventures in technology, infrastructure and security.
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