India, Germany move to deepen defence ties as Modi hosts Merz in Gujarat

India and Germany are seeking to deepen defence industry cooperation, Prime Minister Narendra Modi said on Monday after hosting German Chancellor Friedrich Merz in his home state of Gujarat, as both countries look to strengthen security ties and diversify military supply chains.

Merz said Berlin was also keen to build a closer security partnership with New Delhi, including deeper “cooperation between our defence industries”, a move he said would help reduce India’s traditional dependence on Russia for military hardware.

Merz began his two-day visit to India — his first to Asia since taking office in May — ahead of an upcoming EU-India summit and as India and the European Union continue negotiations on a free trade agreement.

Following the leaders’ meeting, the two sides announced several agreements and joint declarations aimed at boosting bilateral trade, which currently stands at around $50 billion. These included measures to strengthen defence industry cooperation as well as collaboration on semiconductors and critical minerals.

The two countries “are working together on secure, trusted, and resilient supply chains and our MoUs on these issues will strengthen our partnership,” Modi said.

The meeting comes at a time when both India and Germany are facing economic and security challenges linked to the world’s two largest economies, China and the United States.

Merz said Berlin remained “committed to an international order in which we can live freely and securely, because the world is currently undergoing a process of realignment”.

“It is increasingly characterised by great power politics and thinking in terms of spheres of influence, which is why we must join forces to weather these rough winds,” he added.

“That is why we also want to move closer together in terms of security policy, such as conducting joint exercises between our air forces and navies for security in the Indo-Pacific.”

Recent actions and statements by US President Donald Trump, including the imposition of trade tariffs, have contributed to shifting global alliances and regional geopolitics. India is still negotiating a trade deal with Washington.

‘Strategic importance’

“It is of particular strategic importance that we deepen cooperation between our defence industries. This strengthens both sides and also helps to make India less dependent on Russia, for example,” Merz said.

India has relied on Moscow for decades for much of its key military hardware, but in recent years has sought to reduce that dependence by diversifying imports and expanding domestic defence manufacturing.

France, Israel and the United States are now among India’s major military suppliers alongside Russia.

Berlin and New Delhi are also in talks over a potential agreement for Germany’s Thyssenkrupp Marine Systems to build six submarines for the Indian Navy in partnership with state-run Mazagon Dock Shipbuilders.

If finalised, the deal would allow India to replace its ageing fleet of Russian-built submarines and is expected to include technology transfer provisions to support India’s domestic defence industry.

Beyond submarines, the two sides are exploring other areas of cooperation as India plans to invest billions of dollars in upgrading its naval fleet and air force in the coming years.

Germany is home to around 300,000 Indians and people of Indian origin, including about 60,000 students, many of whom are engaged in science, engineering and other key technology research fields. Indian professionals have also helped address skill shortages in Germany’s IT, banking and finance sectors.

Modi said that “India is honoured that he (Merz) has chosen our nation as the place of his first visit in Asia”.

He added that the leaders had agreed on “deeper cooperation in defence, space and other critical and emerging technologies”.

Merz will conclude his visit with a trip to the southern technology hub of Bengaluru on Tuesday.