Funding will advance renewable energy, PM e-bus Sewa, and cooperation in critical minerals, semiconductors, and telecommunications sectors.
India and Germany have agreed to significantly deepen their strategic partnership, with Prime Minister Narendra Modi and German Chancellor Friedrich Merz placing strong emphasis on electric mobility, semiconductors, defence cooperation and green energy during Merz’s first official visit to India. A joint statement said the two leaders reaffirmed cooperation across defence, economy, and technology.
A major highlight was the expansion of the green and sustainable development partnership, under which Germany has already utilised or earmarked nearly €5 billion of its €10 billion commitment up to 2030. Fresh funding will support renewable energy, green mobility including electric vehicles and the PM e-bus Sewa programme, battery storage, solar manufacturing and wind energy. Both sides also advanced cooperation on green hydrogen and welcomed a landmark green ammonia offtake agreement between Indian and German companies.
Economic and technology cooperation featured prominently, with new agreements covering semiconductors, critical minerals, telecommunications, artificial intelligence and innovation. The leaders agreed to establish institutional dialogue across the semiconductor value chain and strengthen research and development collaboration, reflecting shared ambitions to build resilient and secure supply chains.
In defence and security, India and Germany endorsed deeper military cooperation through joint exercises, training and exchanges. They welcomed a new Defence Industrial Cooperation Roadmap focused on co-development, co-production and technology partnerships, alongside Germany’s participation in major Indian naval and air exercises.
Bilateral trade exceeded $50 billion in 2024, and both leaders backed early conclusion of the India EU Free Trade Agreement. People to people links were also boosted through education, skilling and mobility initiatives, reinforcing the partnership as India and Germany marked 25 years of strategic ties.
