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Akbar Novruz

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German Chancellor Friedrich Merz began a two-day visit to India on Monday, underscoring Berlin’s efforts to deepen ties with New Delhi as both countries navigate economic and geopolitical pressures from the United States and China.

The trip — Merz’s first to Asia since taking office in May — comes two weeks ahead of a planned EU-India summit and as Brussels and New Delhi work towards a long-awaited free trade agreement. India’s commerce ministry said on Friday that the deal is envisioned “not just as a trade agreement, but as a comprehensive partnership that addresses modern economic realities”.

Prime Minister Narendra Modi will host Merz in Ahmedabad, in the western state of Gujarat, before the chancellor travels to Bengaluru, India’s main technology hub. The leaders are due to attend a traditional kite festival and visit the Sabarmati Ashram, where Mahatma Gandhi lived for many years.

A German government spokesman said Merz’s decision to make India his first Asian destination “demonstrates how India, the world’s largest democracy, is an important strategic partner for Germany”.

The visit also coincides with heightened EU-India engagement. European Commission President Ursula von der Leyen and European Council President António Costa are scheduled to attend India’s Republic Day celebrations in New Delhi on 26 January.

Security cooperation is expected to feature prominently, with discussions continuing over a potential deal for Thyssenkrupp Marine Systems to build six submarines for the Indian Navy in partnership with state-owned Mazagon Dock Shipbuilders. While the contract is not expected to be signed during the visit, informed sources said the talks could advance the negotiations. The deal would help India replace its ageing Russian-built submarines and is likely to include technology-transfer provisions aimed at strengthening India’s domestic defence industry.

Merz is accompanied by a large business delegation, including executives from Siemens and Airbus. A German government official said one of the main objectives of the trip was to deepen economic relations with India.

Bilateral trade between the two countries is worth almost €50 billion, and India’s population of 1.4 billion offers significant growth opportunities for German exporters. Sales in China have fallen, while German firms face intensifying competition from Chinese rivals across a range of industries. Relations between Berlin and Beijing have also become more strained, with China restricting supplies of semiconductors and certain rare earth elements.

“German foreign trade is looking for growth markets, and India is precisely that,” said Florian Wenke of the government-backed agency Germany Trade & Invest.

Labour mobility is also high on the agenda. Germany faces chronic labour shortages due to an ageing population and has long relied on skilled Indian professionals, particularly in the IT sector. Berlin is also seeking to recruit healthcare workers from India, while German universities remain a popular destination for Indian students.

Merz and Modi are expected to discuss mobility rules for workers and students, as well as closer cooperation in research and innovation.