India is set to welcome German Chancellor Friedrich Merz in January, marking a significant step in strengthening ties between India and Europe. This visit, Chancellor Merz's first since taking office in May 2025, comes at a crucial time as India seeks to deepen its strategic partnerships with key global players. The visit follows closely after Russian President Vladimir Putin's visit and precedes the India-EU summit scheduled for January 27, signaling India's intent to balance major power relationships while bolstering ties with the European bloc.
The agenda for Chancellor Merz's visit is expected to be broad, covering trade, technology, innovation, migration and mobility, green and sustainable development, as well as defense and security. These discussions build upon the existing India-Germany Strategic Partnership, which is celebrating its 25th anniversary in 2025. Both nations are committed to a shared vision of a peaceful, stable, and rules-based world order.
A key focus of the visit will likely be on advancing the India-EU Free Trade Agreement (FTA), which has been under negotiation for several years. Recent discussions between Indian Commerce Minister Piyush Goyal and EU Trade Commissioner Maros Sefcovic indicate a strong commitment from both sides to finalize the agreement at the earliest opportunity. While a year-end deadline may slip, progress has been made, with a preliminary blueprint of the pact in place. The FTA aims to boost bilateral trade in goods and services, impacting sectors such as automobiles, pharmaceuticals, and textiles.
Germany is India's largest trading partner within the EU, with bilateral trade reaching approximately €26 billion in the 2022-23 fiscal year. The EU as a whole is India's largest trading partner for goods, with trade reaching $137.5 billion in 2023-24. Beyond trade, the two countries are also keen to deepen cooperation in areas such as artificial intelligence, quantum technologies, and defense manufacturing.
Germany has also committed significant investments to India's green economy. Recently, Germany pledged €1.3 billion (approximately Rs 13,650 crore) under the Green and Sustainable Development Partnership (GSDP). These funds will support projects related to climate and energy, sustainable urban development, green urban mobility, and natural resource management. Germany will provide concessional loans across the key areas. The GSDP will also focus on skills development, particularly for the renewable energy sector.
India and Germany also share concerns over stability in the Indo-Pacific region, with Berlin viewing China's assertiveness as a challenge to the rules-based international order. This has led to increased cooperation on maritime security, resilient supply chains, and emerging technologies. The two countries are also strengthening defense ties, with Germany set to participate in the next edition of Exercise Tarang Shakti, a multinational air combat exercise, and Exercise Milan, a multinational naval exercise, planned in 2026.
As India and Germany celebrate 25 years of their strategic partnership, Chancellor Merz's visit to New Delhi is expected to provide further momentum to the relationship, solidifying their cooperation across various sectors and reaffirming their commitment to a shared global vision.
