Ahmedabad. Amid global geopolitical tension, relations between India and Germany are going to get new strength. Prime Minister Narendra Modi and German Chancellor Friedrich Merz will hold extensive and important talks in Ahmedabad on Monday. The focus of this conversation will be on trade, investment, defence, critical technology and global security challenges. Friedrich Merz’s visit to India on January 12-13 is his first visit to Asia after becoming the German Chancellor. This visit is taking place at a time when the situation in the world is extremely tense. Issues like the US military crackdown to capture Venezuelan President Nicolas Maduro, the Ukraine war and the changing global balance of power are likely to be at the center of the talks. According to sources, Modi and Merz can also discuss the possibilities of peace in Ukraine. India has been continuously advocating diplomatic solutions and dialogue, hence this issue is considered important.
There will be special emphasis on trade and investment in the meeting. India wants to deepen economic partnership with Europe after the US imposed 50 percent tariff on Indian goods. In this connection, economic cooperation with Germany is being considered strategically important. Germany is India’s largest trading partner in the European Union. Bilateral trade in goods and services between India and Germany to reach $51.23 billion in the year 2024-25. This accounts for about 25 percent of India’s total EU trade. Rapid growth has also been recorded in the service sector. India-Germany services trade increased by 12.5 percent to a record $16.65 billion in the financial year 2024-25.
Investment, Industry and ‘Make in India’
Germany is the ninth largest foreign investor in India. A total of $15.40 billion FDI has come to India from Germany from April 2000 to June 2025. At present more than 2000 German companies are working in India. Defense and security cooperation will also be an important part of the talks. Defense exports from Germany to India have increased following relaxation of export control norms and faster approval process. Meanwhile, there are speculations that during Merz’s visit, the inter-governmental agreement between India and Germany for the supply of six stealth submarines may take final shape.
Terrorism, Maritime Security and Technology
A Joint Working Group on Counter Terrorism is already active between India and Germany. Germany is going to deploy its Naval Liaison Officer at India’s Integrated Fusion Centre-Indian Ocean Region, which will strengthen maritime security cooperation in the Indian Ocean region. Apart from this, relations are also continuously expanding in areas like education, energy, skill development, culture, people-to-people contacts and technology.
Talk on green hydrogen and future technology
In the year 2024, both countries launched the Indo-German Green Hydrogen Roadmap, which aims to support India’s ambition of green hydrogen production, utilization and export. According to sources, there will be special emphasis in Modi-Merge talks on increasing cooperation in critical and emerging technologies.