Explained: As Modi welcomes Merz, the meetings importance and agenda
German Chancellor Friedrich Merz's visit is his first bilateral visit outside the European Union and NATO since taking office, underscoring the strategic weightage that Berlin gives India. Both countries can calibrate bilateral ties at a time of uncertainty brought on by the recent actions of the US.
New Delhi: German Chancellor Friedrich Merz meets Prime Minister Narendra Modi on Monday in Ahmedabad, marking the German leader’s first visit to India as both countries look to strengthen ties. For Germany it is an opportunity to revive growth at home and reduce dependence on China, India can look to tap into Germany for military deals and also green energy opportunities, and for both countries it is a time to calibrate bilateral ties at a time of uncertainty brought in by the recent actions of the US.
Why is the meeting important?
German Chancellor Friedrich Merz’s official visit to India, beginning January 12 in Ahmedabad, marks a significant moment in Indo-German relations. Merz’s first bilateral visit outside the European Union and NATO since taking office, it underscores the strategic weightage that Berlin gives India.
The visit comes at a time of huge uncertainties in the global world order. Be it the protests in Iran, US President Donald Trump’s standoff with the EU on Greenland or unending complications in Russia’s war in Ukraine, there exist a multitude of reasons which makes this meeting of the two world leaders extremely important. It is also a way for both to diversify partnerships away from overdependence on either China or the United States.
The visit also comes as the India-EU free trade agreement discussions and broader Europe-India engagement gain renewed momentum. From India, Germany stands out as the largest EU trading partner and is a major source of technology and investment. A country ideal for aiding India’s push towards technological prowess and modernisation goals, a lot can come out of the meeting and possible deals that come as a result of it.
What is on the agenda?
A central part of the talks is enhancing bilateral trade and investment cooperation. Germany accounts for a large share of India’s trade with the European Union and both sides would look to take this further ahead. Discussions are expected to include exploring ways to advance an EU-India Free Trade Agreement (FTA) that has been under negotiation for years. Once completed it could unlock greater market access for goods and services on both sides and would be a highly anticipated event.
One area of importance can be acquisition of critical minerals, which have become extremely important in today’s economy for their use in electric vehicles, semiconductors and renewable energy production. Germany would likely be looking towards greater access to India’s resources to lessen its reliance on China while India can look for partnerships and investment in mining and processing capabilities.
Another important point of discussion is defence cooperation between the two countries. A potential submarine manufacturing partnership involving German firm Thyssenkrupp Marine Systems and India’s Mazagon Dock Shipbuilders may be one of the most ambitious defence deals on the line.
Discussions on education and human capital are also on the table, with talks expected to boost collaborations in higher education opportunities for Indian students in Germany. Green and Sustainable Development Partnership is also an area where existing collaboration between India and Germany can be taken further. Overall, the meeting between German Chancellor Friedrich Merz and Indian Prime Minister Narendra Modi is of huge strategic and economic importance for both, what makes it even more important is that it comes at a time of huge geopolitical uncertainties.