As many as 25 chief executive officers (CEOs) of top German companies will accompany Merz to India. The German Chancellor, who is eight months into his job, will meet Prime Minister (PM) Narendra Modi in Ahmedabad on Monday, where he will also visit the Sabarmati Ashram. On Tuesday, Merz will be in Bengaluru, where he will visit the Indian Institute of Science and German firm Bosch’s offices.
Merz’s January 12–13 visit to India will be his first to Asia as German Chancellor and is also significant as it comes a fortnight before top EU leaders visit India later this month, when they are to be the chief guests at this year’s Republic Day parade and the two sides are slated to sign the India–EU FTA on January 27. Germany has been strongly backing the FTA.
Germany is India’s largest trading partner in the EU, and bilateral trade in goods and services between the two countries reached $51.23 billion in 2024–25. During his visit to India in September, German Foreign Minister Johann Wadephul met the PM and later said his country is keen to double bilateral trade, which currently stands at a little under 31 billion euros. In recent months, especially after the US increased tariffs on Indian goods to 50 per cent, New Delhi has explored diversifying its export markets.
Germany is also keen to host more skilled labour from India, including for caregiving, nursing, and craftsmanship, as well as students. There are 300,000 Indian passport holders in Germany, including almost 60,000 Indian students, making them the largest group of international students in the country. The number of Indian students in Germany has doubled over the past five years.
“Indian skilled workers in Germany are successful in their jobs, earn above-average incomes, and show above-average integration. They are an asset for the German labour market,” Wadephul had said during his September visit. In 2024, almost a third of all student visas issued globally were issued in India.
However, Germany is keen to improve and enhance the language training on offer for these migrations, including expanding infrastructure for German language tuition and language exams, as well as teaching German as a foreign language in Indian schools, from 58 partner schools currently to 1,000 schools soon.
India and Germany signed the Comprehensive Migration and Mobility Agreement on December 5, 2022. The two countries will also look to further intensify higher education collaboration by offering joint and dual programmes. Currently, seven such agreements exist, with 300 students enrolled. The two countries are working to deepen their voluntary education and training cooperation.
Under the India-Germany Green and Sustainable Development Partnership, launched in May 2022, Germany has committed 10 billion euros, with 1.24 billion euros pledged in December 2025, in sectors such as green urban mobility, clean energy, resource management, and infrastructure. Projects include the Nagpur Metro Rail, green energy corridors in five states, and the integrated water transport project in Kochi.
The two sides will look to expand cooperation in green hydrogen, green energy financing, and biofuels. India is also keen to seek German assistance in the semiconductor manufacturing sector.
Germany accounts for roughly one-fourth of India’s trade with the EU, reinforcing its position as New Delhi’s leading EU trading partner. Indo-German trade in services rose by 12.5 per cent in 2024–25 (FY25), reaching a record $16.65 billion. Germany is the ninth-largest foreign direct investor in India, with cumulative foreign direct investment inflows of $15.4 billion from April 2000 to June 2025. German investment in India during FY25 accounted for $469 million. More than 2,000 German companies currently operate in India, while more than 215 Indian companies operate in Germany.
In the defence sector, with the easing of export controls and expeditious clearance of cases, defence exports from Germany to India have increased. Germany will deploy a German Navy liaison officer to the Information Fusion Centre — Indian Ocean Region. The two sides are working on an intergovernmental agreement to supply six stealth submarines to the Indian Navy.
Subsequent to the German foreign minister’s visit to India in September, Commerce and Industry Minister Piyush Goyal was in Germany from October 22 to 24.
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Berlin seeks to host more professionals as well as students from India in caregiving, nursing and craftsmanship
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Germany aims to improve German language training infra in schools across India
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Berlin is keen to double its trade with New Delhi from the current level of a little over $50 billion
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At the renewable energy front, both nations look to expand cooperation in green hydrogen, energy financing and bio-fuel
 "India is also keen to seek German assistance in the semiconductor manufacturing sector")