Merz in Modi's Backyard: India-Germany Eye Major Deals, FTA, and Defence Ties

India
M
Moneycontrol•12-01-2026, 08:26
Merz in Modi's Backyard: India-Germany Eye Major Deals, FTA, and Defence Ties
- •German Chancellor Friedrich Merz visits India to deepen strategic ties, focusing on trade, defence, and critical minerals.
- •Key discussions include accelerating the EU-India Free Trade Agreement, with Germany pushing for resolution in sensitive sectors.
- •India and Germany are negotiating an $8 billion submarine manufacturing deal, potentially India's largest defence contract.
- •Germany seeks access to India's critical minerals to reduce dependence on China and secure supply chains for EVs and semiconductors.
- •Cooperation on semiconductors, skilled workers (healthcare), and pharmaceuticals are also high on the agenda.
Why It Matters: Germany and India are strengthening strategic and economic ties, focusing on trade, defence, and critical resources.
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