In a period of systemic turbulence, both seeking a multipolar order that preserves their strategic autonomy amid intensifying great-power rivalry.
German Chancellor Friedrich Merz’s visit to India earlier this month underscored a quiet but consequential recalibration in bilateral ties. Timed to mark 25 years of the India-Germany Strategic Partnership and 75 years of diplomatic ties, the two-day engagement in Ahmedabad and New Delhi went beyond symbolism.
It reflected a shared recognition that the relationship can no longer remain anchored primarily in trade and investment, but must evolve into a strategic partnership shaped by shifting geopolitical realities.
The most significant outcome of the visit was the Joint Declaration of Intent on a Defence Industrial Cooperation Roadmap. It marked a clear departure from the buyer-seller model that has long characterised India’s defence engagement with Europe.
By committing to co-development and co-production of military platforms, Berlin signalled its willingness to loosen export controls and facilitate the transfer of sensitive technologies—an issue that has historically constrained defence cooperation.
Merz’s delegation, which included senior representatives from Germany’s submarine industry, also pointed to tangible progress on India’s long-pending project to acquire six advanced conventional submarines, a deal with both commercial and strategic implications.
Beyond defence, the visit reflected converging concerns over supply-chain vulnerabilities in an era of rising protectionism and geopolitical fragmentation. The creation of a CEO Forum, designed to embed business leaders into government-level investment deliberations, illustrates an attempt to align state strategy with private-sector capabilities.
Merz’s optimism that the India-EU Free Trade Agreement could be concluded by early 2026 was politically significant, even if past experience counsels caution about timelines.
Agreements on semiconductors, critical minerals, and telecommunications further reinforced the shared objective of “de-risking” from excessive dependence on China. In this context, Merz’s optimism that the India-EU Free Trade Agreement could be concluded by early 2026 was politically significant, even if past experience counsels caution about timelines.
Sustainability emerged as another pillar of the evolving partnership. Germany’s additional €1.24-billion commitment under the Green and Sustainable Development Partnership targets sectors critical to India’s energy transition, including green hydrogen, electric mobility, and climate-resilient urban infrastructure.
The green ammonia offtake agreement between India’s AM Green and Germany’s Uniper demonstrated how climate cooperation is increasingly being tied to industrial strategy and long-term energy security.
The visit also addressed the softer yet no less strategic dimensions. Visa-free airport transit for Indian passport holders and a new higher education road map—encouraging German varsities to set up campuses in India and facilitating the ethical recruitment of Indian professionals—reflect Germany’s demographic and labour-market imperatives, while deepening societal linkages with India.
Taken together, these initiatives aligned India’s “Viksit Bharat” ambitions with Germany’s broader quest for strategic resilience. In an Indo-Pacific increasingly shaped by great-power competition, Berlin appears to view New Delhi as a critical partner in sustaining a more balanced regional order.
The momentum in India-Europe ties will continue in the coming months. French President Emmanuel Macron’s visit to attend the India-AI Impact Summit highlights Europe’s growing engagement with India on emerging technologies.
The state visit by European Council President António Costa and European Commission President Ursula von der Leyen next week will be another inflection point.
Co-chaired by Prime Minister Narendra Modi, the summit marks a deliberate shift in global AI discourse—from abstract safety concerns to questions of developmental impact—while reinforcing India’s claim that the benefits of frontier technologies must extend beyond the West.
The state visit by European Council President António Costa and European Commission President Ursula von der Leyen next week will be another inflection point. Their participation as chief guests at the Republic Day celebrations and co-chairing of the 16th India-EU Summit underscore the political salience Brussels attaches to New Delhi.
The accompanying India-EU Business Forum will emphasise the economic underpinnings of the ties.
India-EU relations are thus being shaped by a convergence of strategic anxieties and economic opportunity. Shared concerns about an increasingly unstable global order, China’s assertiveness, and uncertainties associated with renewed American unilateralism have nudged both sides towards closer coordination, particularly in the Indo-Pacific.
Negotiations on trade, investment protection, and supply-chain resilience reflect efforts to hedge against overdependence on any single market.
Technology and sustainability are emerging as central drivers of engagement, from digital public infrastructure and semiconductors to green hydrogen and climate finance. Yet, frictions remain, mainly over regulatory instruments such as the EU’s Carbon Border Adjustment Mechanism and differing approaches to standards and governance.
Technology and sustainability are emerging as central drivers of engagement, from digital public infrastructure and semiconductors to green hydrogen and climate finance.
Normative divergences on human rights and regulatory practices also surface periodically, even as expanding education, mobility, and research linkages lend durability to the relationship.
In a period of systemic turbulence, both India and the EU are seeking a multipolar order that preserves their strategic autonomy amid intensifying great-power rivalry. It is this shared impulse that has brought India and Europe closer together. Given the structural forces at play, this convergence is unlikely to be transient and is set to deepen in the years ahead.
This commentary originally appeared in Financial Express.
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Professor Harsh V. Pant is Vice President - ORF and Studies at Observer Research Foundation, New Delhi. He is a Professor of International Relations with ...
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