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Germany and India forge stronger defence and trade ties in historic Merz visit

A landmark visit reshapes India-Germany relations with defence breakthroughs and trade urgency. Could this shift India’s reliance on Russia—and counter US tariffs?

The image shows a map of India with the political divisions of the Indian Empire clearly marked....
The image shows a map of India with the political divisions of the Indian Empire clearly marked. The map is filled with text and lines, providing detailed information about the various states and territories of India.

Germany and India forge stronger defence and trade ties in historic Merz visit

German Chancellor Friedrich Merz made his first official visit to India on 12 January 2026, focusing on deeper strategic ties. The two-day trip aimed to strengthen defence cooperation, boost trade, and finalise the long-awaited India-EU free trade agreement. Both nations also launched a new initiative to expand collaboration in the Indo-Pacific region.

During the visit, India and Germany signed 27 agreements, including 19 on defence. These covered technology transfers for submarines, joint defence strategies, and a roadmap for industrial cooperation in arms production. Chancellor Merz emphasised Germany’s commitment to helping India reduce its reliance on Russian military equipment.

Trade was another key topic, with bilateral commerce already hitting $50 billion. Over 2,000 German companies currently operate in India, and both sides pushed to accelerate the India-EU free trade deal. The urgency grew after the US threatened 500% tariffs on certain Indian exports, increasing pressure to secure alternative trade routes. The leaders also addressed security concerns, jointly condemning the 2022 terror attacks in Pahalgam and Delhi. Prime Minister Modi raised the case of Ariha Shah, an Indian infant in German foster care, seeking updates on her situation. Additionally, Germany introduced a visa-free transit facility for Indian travellers, though they must remain in the airport during layovers. To further regional stability, both countries established a Consultation Mechanism for the Indo-Pacific. This framework will guide future cooperation on economic, defence, and critical mineral supply chains.

The visit marked a significant step in India-Germany relations, with concrete agreements on defence, trade, and regional security. The new defence roadmap and technology transfers aim to reduce India’s dependence on Russian arms. Meanwhile, progress on the India-EU FTA could help counterbalance US trade pressures.

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