As global supply chains falter and geopolitics realign, Germany is forging unbreakable bonds with India. Chancellor Friedrich Merz champions India as Germany’s ‘preferred partner,’ a beacon in turbulent times, per Miriam Bauman’s analysis in ‘One World Outlook.’
Key advantages include prime market access, slashing China reliance, ramping up arms exports, and spurring collaborative innovation. The 2024-launched ‘Focus on India’ strategy eyes India’s trajectory to global economic #3 by 2027, supercharged by its middle-class boom and tech savvy.
2025 bilateral trade crossed 35 billion euros, growing 15% yearly. German FDI totals $15.11 billion from 2000 to early 2025, backing 2,000+ firms that employ 400,000 in autos, chems, and green energy.
Prospective EU-India FTA could trim tariffs by 12%, generating €20 billion more trade. Merz’s trip yielded 19 pacts on defense, technology, critical resources, and renewables.
From dialogue to deeds, defense ties now feature joint industry efforts. A pivotal declaration opens doors to co-building advanced platforms with tech sharing. ThyssenKrupp eyes major wins in Project 75I, the €5B sub buildout with Mazagon Dock, creating German jobs, aiding Indian fleet upgrades, and curbing Russia dependence.
Indo-Pacific strategy gains teeth, matching 2020 guidelines with better sea domain awareness and logistics to uphold rules-based order versus China, securing 90% trade-dependent Indian Ocean routes.
Trade anchors the relationship: Germany leads EU partners at 25% share. $50B+ in 2024 goods/services trade persisted in 2025—Germany exported $18.3B (machines, electrics, chems); India $10.54B (pharma, parts).
‘India First’ sets 2030 goal of €50B trade via diversified chains, heralding enduring strategic synergy.