India–Germany Strategic Partnership

• Context (IE): German Chancellor Friedrich Merz is on his first official visit to India and his first Asian trip since taking office.
• Milestone: The visit coincides with 75 years of Indo-German diplomatic relations and 25 years of the Strategic Partnership.

Overview of India-Germany Bilateral Relations

• Strategic Partnership: India and Germany established a Strategic Partnership in 2000 and are celebrating 75 years of diplomatic relations.
• Dialogue Mechanism: Inter-Governmental Consultations are a formal dialogue mechanism where both heads of government meet every two years.
• Trade Partner: Germany remains India’s largest trading partner within the European Union.
• Trade: Bilateral trade reached a record $50 billion in 2024, with $15 billion from Indian exports.
  • Export Basket: Electrical machinery, organic chemicals, textiles, apparels etc.
  • Import Basket: Industrial machinery, aircraft, precision instruments, etc.
• Multilateral Coordination: Both countries cooperate within the G4 grouping to advocate for reform and expansion of the United Nations Security Council (UNSC).
• Key Divergence: Russia-Ukraine stance, non-tariff trade barriers, data localisation, etc.

Key Outcomes of the German Chancellor’s Visit to India

• Defence Partnership: Both countries signed a Defence Industrial Cooperation Roadmap to move from a buyer–seller model to technology transfer and co-production.
  • Eurodrone: DRDO and Europe’s OCCAR partnered for the Eurodrone MALE UAV programme.
  • Operational Engagement: Germany committed to deploying a Liaison Officer at the IFC-IOR and to participating in the MILAN and Tarang Shakti exercises.
• Trade Integration: Leaders committed to the early conclusion of the India-EU Free Trade Agreement.
  • CEO Forum: The German-Indian CEO Forum was strengthened to channel high-tech investments.
  • SME Focus: Both countries prioritised SMEs and startups to foster innovation and build resilient global supply chains.
• Technology: A Semiconductor Ecosystem Partnership was formed to collaborate on research, design, and the value chain.
  • Critical Mineral: Both signed a Joint Declaration of Intent to cooperate on mineral processing, recycling, and overseas asset acquisition.
  • Excellence Centres: New Indo-German Centres of Excellence will focus on battery tech, green transport, and affordable healthcare.
• Sustainable Energy: India’s National Green Hydrogen Mission (NGHM) was aligned with Germany’s Hydrogen Strategy via harmonised regulatory standards.
  • Green Ammonia: A binding agreement was signed for the supply of green ammonia to the German energy market.
  • Climate Finance: Germany committed €10 billion in concessional finance by 2030.
• Migration and Mobility: Germany decided to grant visa-free airport transit to Indian passport holders.
  • Skills Partnership: A Global Skills Partnership was created for Indian healthcare and renewable energy professionals to work in Germany.
  • Higher Education: Both countries adopted a Comprehensive Roadmap to expand joint degree programmes and research collaboration.
• Regional Strategy: A Bilateral Indo-Pacific Consultation Mechanism was launched to coordinate the rules-based regional order.
  • IMEC: Both countries reaffirmed support for the India-Middle East-Europe Economic Corridor (IMEC).