India and Germany have taken a big step to boost their defence ties. Prime Minister Narendra Modi and German Chancellor Friedrich Merz signed key agreements during Merz’s visit to Ahmedabad on January 12, 2026. This move simplifies defence trade processes and opens doors for joint work in military tech.
The two nations inked 19 pacts, including a Joint Declaration of Intent for defence industrial cooperation. This roadmap focuses on co-development and co-production of defence equipment like submarines, helicopter systems, and counter-drone tech. PM Modi thanked Chancellor Merz for easing export clearances, which will speed up deals and cut red tape.
Bilateral trade hit over $50 billion in 2024, with goods and services growing fast—India’s exports to Germany reached $10.54 billion in FY25. Defence cooperation builds on this, reducing India’s reliance on Russia and using Germany’s tech with India’s skilled workers. Joint exercises, naval visits, and new dialogues on security will strengthen ties further.
This partnership marks 75 years of diplomacy in 2026 and supports Atmanirbhar Bharat for self-reliant defence. It also covers critical minerals, semiconductors, and green energy, with nearly €5 billion used from Germany’s €10 billion commitment by 2030. These steps promise jobs, innovation, and security in a tough global world.
FAQs [Frequently Asked Questions]
1. What agreements were signed between India and Germany?
India and Germany signed 19 pacts, key ones being a Joint Declaration of Intent for defence industrial cooperation and deals on critical minerals, semiconductors, and higher education.
2. How will defence trade be simplified?
Germany will expedite export clearances and simplify processes, enabling faster co-development and co-production of defence equipment like submarines and counter-drone systems.
3. What is the current India-Germany trade volume?
Bilateral trade exceeded $50 billion in 2024, with India’s exports to Germany at $10.54 billion in FY25 and services trade up 12.5%.
4. Why is this defence partnership important?
It reduces India’s Russia dependence, boosts self-reliance via Atmanirbhar Bharat, and leverages Germany’s tech with India’s workforce for joint military innovation.