PM Modi meets German Chancellor Merz in Gujarat: What's on the agenda

Prime Minister Narendra Modi met German Chancellor Friedrich Merz on Monday in Ahmedabad. The visit marks Chancellor Merz’s first official trip to India since assuming office last May.

 

The German Chancellor, who is on a two-day visit, will be accompanied by a 25-member delegation consisting of several chief executive officers. Heads of Siemens, DHL Group, Infineon Technologies, Uniper and Airbus Defence and Space are a part of the delegation, Bloomberg reported.

 

Upon his visit, Merz was received by the Governor of Gujarat Acharya Devvrat at the airport. In a post on X, the Ministry of External Affairs said, "Federal Chancellor Friedrich Merz has arrived in Ahmedabad on an official visit. India and Germany are celebrating 75 years of India-Germany diplomatic ties and 25 years of the India-Germany Strategic Partnership. Chancellor Merz’s visit and his meeting with PM Modi later in the day will further strengthen India-Germany partnership."

 

Visit to Sabarmati Ashram

According to the official release, PM Modi and Chancellor Merz will visit the Sabarmati Ashram at 9:30 am to pay tribute. At around 10 am, both leaders will take part in the International Kite Festival at the Sabarmati Riverfront. The event will host kite flyers from 50 countries and more than 900 participants from across India and Gujarat. The festival also features night kite flying, heritage havelis, and a kite museum.

 

Chancellor Merz is also scheduled to visit the Adalaj Step Well. From 11:15 am onwards, both leaders will hold bilateral talks at Mahatma Mandir in Gandhinagar.

What is on the agenda

During the bilateral meeting, the two leaders will review how the India-Germany partnership has progressed so far. They will discuss ways to work more closely in trade, investment, technology, pharma, defence, and security, among others.

 

According to Blomberg, Germany and India are expected to sign agreements on semiconductor development and defence projects. Germany aims to secure better access to critical minerals from India, as Berlin plans to decrease its dependence on China amid increasing disruptions.

 

During the talks, special focus will be on boosting trade and investment. The leaders will look at cooperation in high-end technology, defence, science, and research. They will also meet business and industry leaders from both countries to encourage stronger economic ties.

 

PM Modi and Chancellor Merz are likely to exchange views on important regional and global matters. These discussions aim to strengthen coordination between India and Germany on international challenges.

Why the visit matters

This visit assumes significance as it comes just two weeks ahead of the planned EU-India summit and ongoing discussions between India and the European Union on a free trade agreement. Merz will likely use the meeting to speed up negotiations on the free trade agreement, Bloomberg reported.

 

Both leaders have shared friendly ties since Merz assumed office in May. Soon after his swearing-in, Chancellor Merz spoke with PM Modi, and the two have met twice since then, first on the sidelines of the G7 leaders’ summit in Canada last June, and later during the G20 leaders’ summit in South Africa in November last year.

 

It is also significant as India is trying to diversify its trade ties since the US imposed steep tariffs on Indian exports. Starting August last year, the US imposed a 50 per cent tariff on Indian imports, including a 25 per cent penalty for buying Russian crude.

India-Germany ties

India and Germany have shared a strong partnership for 25 years. Over 2,000 German companies operate in India, while more than 700 Indian companies have investments in Germany. With bilateral trade close to $50 billion, Germany is India’s most important partner in the EU.

 

Germany is India’s ninth-largest foreign direct investor, with cumulative FDI of $15.11 billion between April 2000 and March 2025. Germany invested $469 million in India during FY25 across sectors such as transport, electrical equipment, metals, services, chemicals, and automobiles.