Merz in New Delhi: How India–Germany Ties Are Being Recast for a Fractured World

German Chancellor Friedrich Merz’s first official visit to India may have been brief, but it carried strong strategic intent. Coming amid global instability, supply-chain disruptions, and geopolitical polarisation, the visit signalled a shared view in New Delhi and Berlin: partnerships between democratic powers now require deeper coordination, not ritual reaffirmation. From trade and technology to defence, green energy, and people-to-people links, the Modi–Merz engagement marked a shift from transactional cooperation to strategic convergence.

A shared diagnosis of a weakening global order

A defining feature of the talks between Prime Minister Narendra Modi and Chancellor Friedrich Merz was their unusually frank assessment of global instability. Merz spoke openly about the erosion of international norms and the fragility of existing multilateral arrangements, arguing that countries like India and germany/">Germany must “do much more” together to stabilise the system.

This convergence of outlook translated quickly into policy alignment. Germany expressed clear support for the early conclusion of the India–EU Free Trade Agreement, an issue long stalled by regulatory and political differences within Europe. For India, Berlin’s backing matters: Germany remains the EU’s largest economy and a key agenda-setter in Brussels.

Trade momentum and the push for economic resilience

Economic ties formed the backbone of the visit. Bilateral trade has crossed nearly $51 billion, accounting for roughly a quarter of India’s total trade with the European Union. Both leaders acknowledged that while growth has been robust, sustaining it requires a forward-looking strategy that goes beyond traditional goods trade.

At the India–Germany CEOs’ Forum, Merz underlined the importance of economic resilience and warned against “dangerous one-sided dependencies”—a phrase reflecting Europe’s post-Ukraine rethink on over-reliance, whether on energy, raw materials, or critical technologies. For India, this emphasis aligns with its own diversification strategy, positioning itself as both a market and a manufacturing partner in Europe’s de-risking calculus.

Technology cooperation in an age of weaponisation

Technology emerged as a strategic pillar of the visit. Both sides acknowledged that critical technologies—semiconductors, digital infrastructure, advanced manufacturing, and clean tech—are increasingly being “weaponised” through export controls and geopolitical leverage.

The response, they agreed, lies in trusted partnerships. India and Germany see scope for closer collaboration in research, standards-setting, and innovation ecosystems, reducing vulnerability to unilateral controls. This is less about decoupling and more about building redundancy and trust across democratic systems.

A quiet but significant shift in defence engagement

One of the most notable outcomes was Germany’s evolving approach to defence cooperation with India. Export clearances that were once slow and politically fraught are now being processed more efficiently, with much of the earlier backlog cleared.

During the visit, both sides announced plans to develop a defence industrial cooperation roadmap, including discussions related to submarines. Equally important was how differences were handled. India reiterated that its defence procurement decisions are driven by national interest and operational needs, not ideology. Germany, for its part, signalled a more pragmatic security posture—recognising India as a strategic partner rather than a country to be publicly lectured on its ties with Russia.

Green hydrogen and the energy transition link

Clean energy cooperation gained concrete substance with a long-term off-take agreement for green ammonia between India’s AM Green and Germany’s Uniper Global Commodities. This deal fits squarely into both countries’ climate strategies: India as a low-cost producer of green fuels and Germany as a major industrial consumer seeking to decarbonise.

Such agreements move green hydrogen from policy ambition to commercial reality, anchoring the energy partnership in long-term industrial logic rather than short-term symbolism.

People-to-people ties and the politics of mobility

With nearly 3,00,000 people of Indian origin in Germany and around 60,000 Indian students, mobility has become a strategic asset. Merz’s explicit welcome to Indian students and skilled professionals carried both political and economic weight, particularly as Germany confronts demographic decline and skill shortages.

Prime Minister Modi echoed this emphasis, even as he flagged the need for more sensitive handling of diaspora-related issues—from individual legal cases to disruptions faced by students in virtual learning environments. The message was clear: talent flows are now central to the partnership’s future.

Geopolitics without illusions

The leaders also exchanged views on the Russia–Ukraine war, developments in West Asia, and the Indo-Pacific. While positions are not identical, the emphasis was on dialogue, shared principles, and practical coordination rather than forced alignment. This realism—accepting differences while expanding cooperation—was a hallmark of the visit.

Beyond symbolism: what the outcomes signal

With 19 MoUs signed and eight additional announcements—27 outcomes in total—the visit went well beyond diplomatic optics. Most tellingly, Chancellor Merz invited Prime Minister Modi to Berlin later this year for the next India–Germany Intergovernmental Consultations, signalling intent to institutionalise momentum.

Taken together, Merz’s New Delhi visit suggests that India–Germany ties are entering a more strategic phase—anchored in economic resilience, technology trust, and pragmatic security cooperation. In a fractured global order, Berlin and New Delhi appear to be betting that middle powers with shared democratic instincts can still shape outcomes—if they are willing to invest in each other.