Prime Minister Narendra Modi said on Monday that the growing cooperation between India and Germany in the defence and security sectors is a "testament to mutual trust and shared vision" and thanked German Chancellor Merz for simplifying the defence trade.

He mentioned that India and Germany share common priorities in the renewable energy sector. He also announced that the two nations will establish the India-Germany Centre of Excellence to further enhance cooperation.

During the joint press meet with German Chancellor Friedrich Merz following their talks on Monday, PM Modi noted that India and Germany are celebrating 75 years of diplomatic ties in 2026 and stressed that growing trade and investment ties have given new energy to the strategic partnership.

"Chancellor Merz's visit is taking place at a special time. Last year, we completed 25 years of our strategic partnership, and this year, we are also celebrating 75 years of our diplomatic relations. These milestones are not merely achievements of time. They are symbols of our shared ambitions, mutual trust, and ever-strengthening cooperation," he said.

"Close cooperation between economies like those of India and Germany is crucial for all of humanity. Growing trade and investment ties have given new energy to our strategic partnership. Our bilateral trade has reached its highest level ever, with bilateral trade now exceeding USD 50 billion," he added.

German Chancellor Friedrich Merz said on Monday that Iran's use of "disproportionate and brutal violence" against protesters was "a sign of weakness".

"We condemn this violence in the strongest possible terms," he said during a visit to India. "This violence is not an expression of strength, but rather a sign of weakness. This violence must end."

Gandhinagar, Gujarat: Prime Minister Narendra Modi says, "As a Chancellor, this is Friedrich Merz's first visit to India, and indeed to Asia. This is strong evidence of the deep importance he attaches to relations with India. India is fully committed to further strengthening its friendship and partnership with Germany. We extend a heartfelt welcome to Chancellor Merz in India. Chancellor Merz's visit is taking place at a special time..."

Ahmedabad, Gujarat: Prime Minister Narendra Modi holds a bilateral meeting with German Chancellor Friedrich Merz. Pacts were signed between India and Germany in the presence of Prime Minister Narendra Modi and German Chancellor Friedrich Merz in Gandhinagar, Gujarat.

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.

 German Chancellor Friedrich Merz is in India from January 12 to January 13. During this time, he'll hold bilateral engagements with Prime Minister Narendra Modi from 11:15 am onwards at Mahatma Mandir in Gandhinagar.

The two leaders will review progress on the India-Germany Strategic Partnership, which recently marked its 25th anniversary.

Their discussion will also focus on further intensifying cooperation in trade and investment, technology, education, skilling and mobility, while advancing collaboration in key areas of defence and security, science, innovation and research, green and sustainable development, and people-to-people ties.

Prime Minister Modi and Chancellor Merz will also exchange views on issues of regional and global importance and engage with business and industry leaders of the two countries.

The visit is expected to build on momentum from regular high-level political interactions and provide an opportunity to reaffirm India and Germany's shared vision to develop a forward-looking partnership for the benefit of both countries and the wider global community.

On January 13, Merz will visit Bosch, then Nano Science and Engineering, CeNSE, and depart for Germany.

 Prime Minister Narendra Modi on Sunday warmly welcomed German Chancellor Friedrich Merz to Sabarmati Ashram in Ahmedabad, marking the German leader's first official visit to India since taking office.

After his arrival at the Ashram, both leaders paid floral tributes to the Father of the Nation, Mahatma Gandhi. Merz also signed the visitors' book there.

Both leaders then participated in the International Kite Festival 2026, held at the Sabarmati Riverfront, underscoring the cultural and diplomatic significance of Chancellor Merz's visit to India.

The visit is part of Chancellor Merz's official trip to India, aimed at strengthening bilateral ties between India and Germany, and coincides with celebrations marking 75 years of diplomatic relations and 25 years of the India-Germany Strategic Partnership.

In India, high US tariffs are creating uncertainty, and the country is also re-evaluating its stance towards China, said economist Samina Sultan from the German Economic Institute.

"This is certainly a time when India is striving to expand trade relations, such as with Germany or with Europe as a whole," Sultan said.

India offers potential growth markets for German green energy technology and defence exports, Sultan said, with India interested in broader partnerships "so as not to become so dependent on Russia, China or even the USA".

Jan Noether, head of the Indo-German Chamber of Commerce, said the timing of Merz's visit is "absolutely "ideal"—especially as an EU-India free trade agreement appears within reach.

Discussions will also focus on the recruitment of skilled labour, according to the German government official.

With ageing Germany facing a chronic labour shortage, its companies have long relied on skilled Indian personnel, particularly in the IT sector. Germany is also looking to recruit more workers in the healthcare sector from India.

German universities are also a popular destination for Indian students, and Merz and Modi are expected to discuss mobility rules for workers and students as well as cooperation on research.

For India and Germany, security links could also be bolstered by a potential deal for German's Thyssenkrupp Marine Systems to build six submarines for the Indian Navy in a partnership with Indian state-run Mazagon Dock Shipbuilders. That deal remains under negotiation, but would allow India to replace its ageing fleet of Russian-built submarines and likely include technology transfer provisions that would help build up its domestic defence industry.

Citing sources, AFP reported that the contract is not expected to be signed during the chancellor's visit, but it should help move the discussions forward.

Merz will be accompanied by a large business delegation, including executives from corporate giants such as Siemens and Airbus.

"One of the main objectives of this trip is to deepen economic relations with India," a German government official said.

For Germany's exporters, India and its 1.4 billion inhabitants represent significant opportunities, with a bilateral trade volume of almost 50 billion euros.

Sales have slumped in China, and German firms now face fierce global competition from Chinese rivals in many industries.

German-Chinese relations have also become strained, with Beijing limiting supplies of semiconductors and some rare earth elements.

"German foreign trade is looking for growth markets, and India is precisely that," said Florian Wenke of the state-run agency Germany Trade & Invest.

Ahmedabad, Gujarat: Prime Minister Narendra Modi and German Chancellor Friedrich Merz fly a kite at the International Kite Festival 2026 at Sabarmati Riverfront.