German Chancellor Friedrich Merz’s visit to India on 12-13 January marked his first trip to Asia since his inauguration as Chancellor in May 2025. The visit also commemorated 75 years of diplomatic ties and 25 years of strategic partnership between the two countries, and marked the milestone of bilateral trade reaching USD 50 billion. These numbers have provided institutional scaffolding for the list of 27 outcomes identified during this meeting, covering trade, defence cooperation, renewables, technology, energy, skilling and mobility, and people-to-people ties.

Merz’s presence catalyses New Delhi’s Europe-first start to 2026. Following External Affairs Minister S Jaishankar’s visit to France and Luxembourg, and preceding the Polish Foreign Minister’s visit to New Delhi, this flurry of activity will culminate in the India-EU Summit and the Republic Day visit by EU leaders Ursula von der Leyen and António Costa. This diplomatic traffic points towards a singular strategic destination: the India-EU free trade agreement (FTA).

By choosing India for his inaugural Asian visit, Merz has signaled Berlin’s attempt to execute a new German strategic realism in which New Delhi is viewed as an essential partner in navigating the multiple quid pro quos of a fragmenting global order.

The Visit: Operationalising the “Focus on India”

Merz’s first bilateral visit outside NATO and the EU resulted in the signing of 19 MoUs and eight major announcements (totaling 27 outcomes), thereby giving functional wheels to Germany’s 2024-released “Focus on India” policy framework. One of the crucial pillars of this has been the Joint Declaration of Intent (JDI) on strengthening ‘Bilateral Defence Industrial Cooperation’, which, in practice, hints at a shift from a buyer-seller relationship to co-development and co-production. Prime Minister Modi acknowledged this as a “symbol of our mutual trust and shared vision.” He also expressed gratitude for Merz’s efforts in “simplifying the processes related to defence trade,” suggesting a potential cooling off of German regulatory caution.

Alongside technology, the increased focus on critical and emerging technologies further anchors the economic outcome of this visit. The JDI on ‘Cooperation in the Field of Critical Minerals’, ‘India-Germany Semiconductor Ecosystem Partnership’ and ‘Cooperation in the Field of Critical Minerals’ act as outcomes to counter ongoing supply chain disruptions. Germany has also demonstrated its trust in India as a critical partner in the energy transition by committing 1.24 billion Euros in new funding to the Green and Sustainable Development Partnership (GSDP). GSDP supports initiatives such as PM e-Bus Sewa, renewable energies, green hydrogen, and climate-resilient urban infrastructure.

Two of the crucial bedrocks of the Indo-German relationship are cultural and people-to-people ties and skilling and mobility. Indian students are among the largest student communities in Germany, and Indian skilled workers are among the most sought-after, earning the highest median pay. On that front, declarations have been announced for the recruitment of healthcare professionals and skilling in renewable energy. Cultural and people-to-people ties have strengthened in sports, postal services, and maritime museums, and gained momentum with the announcement of visa-free transit for Indian passport holders transiting through Germany.

Navigating Geopolitical Fragmentation

Merz’s decision to visit India on his first trip to Asia marks a departure from Berlin’s traditional Asian hierarchy established by former Chancellors Schröder and Merkel. Scholz struck a balance by visiting Tokyo first, and now Merz has elevated New Delhi in this hierarchy. The upgrade by Berlin can be viewed as an attempt to accelerate de-risking from Beijing, reducing one-sided dependence on Chinese supply chains and raw materials. The energy crisis with Russia has led to hard lessons in Germany and Europe. Berlin’s shift is also underscored by a contentious 2025 with Beijing. In August 2025, German Foreign Minister Johann Wadephul denounced China's "increasingly aggressive behaviour" in the Taiwan Strait and the East and South China Seas and declared that Europe’s "Fundamental principles of our global cooperation are at stake.” Then, following his August visit to India, Wadephul’s planned October tour of Beijing was abruptly cancelled because the Chinese side hadn’t confirmed any meetings beyond one with Wang Yi. Eventually, he visited Beijing in December 2025. Thus, Merz’s landing in Ahmedabad suggests that Germany might prefer a relatively predictable India to a temperamental, competing China.

There is also a profound strategic quid pro quo binding New Delhi and Berlin more than ever. For New Delhi, Germany, and by extension, the EU, provide an essential alternative to an unpredictable and volatile US. It also allows New Delhi to diversify away from Moscow, especially on defence matters. In Europe, India can find a logical third pole amid an American squeeze, protectionism, and a waning Russia, to reignite its push to become an alternative Asian power. For Berlin, India provides an alternative for de-risking and a stable source of skilled workforce. Further, as Merz mentioned in his press statement, the two countries are united by “fundamental political values” and “shared essential interests” in today’s international order, “which is currently undergoing a reorganization.”

The shifting domestic political landscape in Europe frames the urgency of this engagement between India and Germany, and between Europe at large and India. The two partners must institutionalise these comprehensive, value-based ties amid a surge in far-right and populist movements across the Eurozone. While the European far-right has not yet affected India, the inherently volatile and protectionist nature of populist politics pushes the Modi government, the Merz administration, and the EU to operate under a time constraint. They must firm up the India-EU FTA and defence cooperation roadmaps before the political winds in Brussels shift. Merz’s arrival in India serves as an anchor for India and the EU to build a resilient partnership insulated from volatile, protectionist headwinds.

Conclusion

It has long been a paradox that despite being the world’s third- and fourth-largest economies, Germany and India have historically underperformed as partners. All words and little play have been a cornerstone of their relationship up until now. It has taken global upheaval to bring these two promising partners together and finally turn their words into actionable outcomes. The success of this visit will ultimately be measured not by the number of documented outcomes, but by the quality and speed of their implementation. As the focus shifts to the upcoming India-EU Summit and the FTA, this meeting makes clear that New Delhi and Berlin have begun operationalising a shared future.

Ashutosh Nagda is Senior Researcher with IPCS’ Centre for Internal and Regional Security (IReS).