India, Germany reaffirm strategic ties as Chancellor Merz begins visit

India and Germany will deepen cooperation across trade, technology and clean energy as their bilateral trade relationship crosses a record $50 billion, Prime Minister Narendra Modi said on Monday during talks with German Chancellor Friedrich Merz in Gujarat.

The discussions took place during Merz’s first official visit to India, a two-day trip that coincides with 75 years of diplomatic relations between India and Germany, and 25 years of their strategic partnership. The visit is aimed at expanding cooperation across trade, investment, technology, education, mobility, defense, and sustainable development.

“Our bilateral trade has reached its highest level ever, surpassing the $50 billion mark,” Modi said at a joint press conference, pointing to the presence of more than 2,000 German companies operating in India as evidence of growing confidence in the Indian market. Technology cooperation between the two countries has strengthened steadily, he added, with both sides sharing common priorities in renewable energy and climate action.

Modi said the two leaders agreed to establish an India-Germany Centre of Excellence to serve as a joint platform for technology, innovation and knowledge exchange.

He also invited German universities to set up campuses in India under a newly agreed roadmap for higher education cooperation, and thanked Merz for announcing visa-free transit for Indian citizens, a move aimed at boosting people-to-people ties.

“Close cooperation between the Indian and German economies is important not only for our two nations, but for humanity as a whole,” Modi said, adding that the partnership rests on shared democratic values and long-standing intellectual and philosophical links between the two societies.

Merz, who arrived in Gujarat earlier in the day, said Germany sees India as a central partner in a period of global economic and geopolitical uncertainty. While stressing the importance of open markets and resilient supply chains, he also underlined Berlin’s interest in expanding security and technology cooperation with New Delhi.

The visit comes as Germany and India seek to reduce supply-chain vulnerabilities and recalibrate economic partnerships amid slowing global trade and rising geopolitical fragmentation.

Merz warned against rising protectionism, saying the global economy was witnessing a “renaissance of protectionism” that risked undermining growth and trust in open markets.

The two leaders also exchanged views on global and regional developments, including the conflicts in Ukraine and Gaza. Modi said both countries were united in viewing terrorism as a grave threat to humanity and reaffirmed their commitment to combating it together.

He also reiterated the need to reform global institutions to better reflect contemporary realities, citing joint efforts by India and Germany through the G4 grouping to push for United Nations Security Council reform.

The visit included a meeting with business leaders at the India-Germany CEOs Forum, where both sides discussed ways to deepen commercial ties and accelerate investment flows. Several memorandums of understanding were signed in areas spanning clean energy, technology cooperation and skills development.

A key commercial highlight came with an agreement between German utility Uniper and India’s AM Green for the long-term supply of up to 500,000 tonnes of green ammonia a year, with the first shipments expected in 2028. Modi welcomed the deal as a step toward closer cooperation in clean energy and industrial decarbonization.

The agreement covers the supply of up to 500,000 tons of green ammonia a year, with the first shipments expected in 2028.

Earlier in the day, Modi and Merz visited the Sabarmati Ashram to pay tribute to Mahatma Gandhi and jointly inaugurated the International Kite Festival 2026 along the Sabarmati riverfront, blending cultural diplomacy with formal engagements.

The German chancellor is also scheduled to travel to Bengaluru, where discussions are expected to focus on technology cooperation, innovation ecosystems and skilled mobility.

Merz’s visit will conclude on Tuesday after further official engagements, including additional interactions with Indian officials and business leaders, as both governments look to translate political goodwill into concrete economic and strategic outcomes.