What is the story about?
Prime Minister Narendra Modi will hold talks with German Chancellor Friedrich Merz in Ahmedabad on Monday. The two leaders are likely to focus on a range
of issues including trade, investment, critical technologies and defence ties. As Merz's trip to India is taking place amid a fractious geopolitical environment, including the US's display of raw military strength to capture Venezuela's President Nicolas Maduro, the German leader and Modi are also likely to discuss pressing global challenges. Notably, this is Merz's first visit to Asia as a German Chancellor.
Modi-Merz Talks in Ahmedabad - What's on Agenda
In their talks, PM Modi and German Chancellor Merz are likely to deliberate on trade and investment ties as New Delhi is looking at deepening economic engagement with Europe against the backdrop of Washington's 50 per cent tariff on Indian goods.
Defence and security ties between the two countries have also been on an upswing and is likely to figure during Monday talks. There has been speculation that India and Germany may finalise an inter-governmental agreement during Merz's visit for supplying six stealth submarines to the Indian Navy.
German defence major ThyssenKrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Ltd (MDL) are holding price negotiations with the defence ministry for an Euro 5 billion deal to supply six stealth submarines to the Indian Navy.
Notably, both sides have a joint working group on counter terrorism. Germany will be deploying a German Navy liaison officer in India's Integrated Fusion Centre - Indian Ocean Region (IFC-IOR).
Merz to Visit Sabarmati Ashram, Then Travel to Bengaluru
Besides holding talks with PM Modi, Merz is scheduled to visit the Sabarmati Ashram, participate in the International Kite Festival at the Sabarmati Riverfront and attend a skill development event in Ahmedabad. The German leader will travel to Bengaluru after concluding his engagements in Ahmedabad.
A Look India-Germany Partnership
Germany is one of India's most important partners in Europe. It is New Delhi's largest trading partner in the European Union and the bilateral trade in goods and services between the two countries reached USD 51.23 billion in 2024-25.
Germany accounts for roughly one-fourth of India's trade with the EU, reinforcing its position as New Delhi's leading EU trading partner. The Indo-German trade in services rose by 12.5 per cent in the financial year 2024-25, reaching a record USD 16.65 billion.
The influential European nation is the ninth largest foreign direct investor in India, with cumulative FDI inflows of USD 15.40 billion from April 2000 to June 2025. More than 2000 German companies are currently operating in India.
Days after Merz's trip, the top leaders of the European Union will visit New Delhi during which the two sides may announce finalisation of the much-awaited India-EU free trade agreement.
(With inputs from PTI)
