German Chancellor Friedrich Merz is seeking to increase business and defence collaboration with India on his first trip to Asia, aiming to strengthen Europe’s largest economy amid growing tensions with its top trading partners, China and the US.
Friedrich Merz is expected to meet Narendra Modi on Monday in Ahmedabad, Gujarat. It has been decided that both leaders will hold a bilateral meeting, followed by a visit to the Mahatma Gandhi Memorial site and a local kite festival.
This meeting is a great opportunity for both leaders to bolster their strategic and economic ties amid strained relations with other nations. U.S. President Donald Trump’s repeated threats to annexe Greenland have shocked European allies, while India remains subject to one of the highest U.S. tariff rates at 50 per cent.
During Merz’s two-day trip, India and Germany decided to sign an agreement on business cooperation, semiconductor development, and defence projects. Germany also hopes to gain better access to critical minerals from India, with both countries to sign a memorandum of understanding (MoU) on the matter. Berlin is struggling to reduce its dependence on China for rare earths and other raw materials.
Germany and India are also expected to sign an agreement to ease the barriers for Indian healthcare workers to work in Germany, where labour shortages across many sectors are holding back economic growth.
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Both sides are also aiming to deepen cooperation in the pharmaceutical and defence sectors. Chancellor Merz will use this meeting with PM Modi to expedite negotiations between the European Union and India on a Free Trade Agreement.
