New Delhi: German Chancellor Friedrich Merz used his first visit to India to push for a deeper strategic partnership anchored in defence cooperation and skilled migration, while acknowledging India’s continued reliance on Russian energy and arguing that closer security ties with Europe could help New Delhi reduce long-term dependence on Moscow.The visit, Merz’s first to Asia since taking office and his maiden trip to India as chancellor, comes as Germany seeks to diversify away from China and reinforce partnerships in the Indo-Pacific, while India balances growing engagement with Europe amidst strained economic ties with United States over tariffs.In Ahmedabad on Monday (January 12), in the Indian Prime Minister Narendra Modi’s home state, Merz and Modi oversaw the signing of 27 agreements and declarations.In a notable shift in Berlin’s Indo-Pacific posture, defence cooperation topped the bilateral agenda. The two sides agreed to draw up a defence industrial cooperation roadmap focused on joint development, co-production and innovation, alongside deeper collaboration between their defence industries.“We want to deepen our defence industries and the cooperation of our defence industries, and this has strategic significance that strengthens both sides,” Merz said at a joint press appearance with Modi. Such cooperation, he added, would also contribute to India becoming “less dependent on others, such as Russia.”However, Indian foreign secretary Vikram Misri later told reporters, in response to a question about the German leader’s remarks, that India’s “approach to defence sourcing” was driven by national interest.“There are a lot of factors involved in that and it is certainly not ideological, it is entirely driven by our interest,” he said.While speculation around a major submarine deal involving Germany’s ThyssenKrupp and Indian partners did not translate into an announcement, Foreign Secretary Vikram Misri said technical and commercial discussions were “proceeding positively” and had gathered “positive momentum”.Former Indian ambassador to Germany Gurjit Singh described the emphasis on defence as a structural shift. “In the joint statement, point one is defence and security cooperation,” he told DW, underscoring what he called Germany’s clear preference for India as a partner in the Indo-Pacific.The two countries agreed to expand joint exercises between naval and air forces, reciprocal port calls, personnel exchanges and cooperation on advanced platforms and technologies. Germany also announced plans to post a liaison officer to India’s Information Fusion Centre for the Indian Ocean Region and to participate in India’s Milan naval exercise and Tarang Shakti air combat exercise in 2026.Russia and Ukraine inevitably featured in the talks, with Merz addressing India’s continued purchases of Russian oil and gas. While stressing that Berlin and New Delhi share a common assessment of Russia’s invasion of Ukraine, the chancellor said he understood India’s constraints.“India, as a country of 1.4 billion people with few domestic energy resources, is dependent on Russian oil and gas imports,” Merz said later. If India can reduce that dependence, he added, “then they will do so,” but pressure was not the right tool. “Exerting pressure is not the instrument to place a partnership on a new footing.”India has dramatically increased purchases of Russian crude oil since the start of the Ukraine war, transforming Russia from a marginal supplier to its second largest buyer. New Delhi maintains these purchases are a matter of “vital national necessity” for affordable energy and has accused both the United States and European Union of double standards while continuing their own strategic trade with Moscow.India’s oil purchases from Russia had dipped to its lowest point in December in three years under pressure from Trump’s tariffs, even though Indian officials framed it as matter of market forces.The joint statement reflected carefully calibrated language on Ukraine, with both leaders reiterating “concern over the ongoing war” and expressing “support for efforts to achieve a comprehensive, just and lasting peace in Ukraine in accordance with international law and the principles of the UN Charter.” But, there was no mention of Russia.Merz described Russia’s invasion of Ukraine as the “most drastic expression” of a global upheaval driven by great-power politics and thinking in terms of spheres of influence.“No, we do not always agree on all issues. Nor are we with most of our European neighbours. But the similarities we have with each other are nevertheless very great,” he added.On Gaza, both sides backed humanitarian access and reiterated support for a negotiated two-state solution. At the press conference, Merz also condemned the Iranian authorities’ violent crackdown on protesters, calling it “not an expression of strength, but of weakness,” and urged Tehran to protect its population. Modi refrained from any comment on the protests in Iran.Economic cooperation formed another major pillar of the visit, with bilateral trade reaching record levels. Modi noted that India-Germany trade surpassed USD 50 billion, accounting for more than 25 percent of India’s total trade with the European Union.Both leaders strongly endorsed the conclusion of a long-awaited India-EU Free Trade Agreement, with Merz indicating European Commission President Ursula von der Leyen would travel to India later this month for an EU-India summit where the agreement could be signed.The German leader noted that the issues of automobile industry quotas, steel policy and Carbon Border Adjustment Mechanism have still to be resolved, but that there was “genuine progress”.“The world is going through a renaissance of protectionism,” Merz observed, noting this hurts both India and Germany. The urgency has increased given recent US trade policy uncertainty and the imposition of tariffs on Indian goods.The visit included the establishment of a new India-Germany CEO Forum, bringing together 23 German business leaders who accompanied Merz. Key sectors for expanded cooperation include semiconductors, critical minerals, telecommunications, automotive, pharmaceuticals, biotechnology, and renewable energy.Among specific outcomes, German energy company Uniper signed an off-take agreement with Indian company AM Green for the supply of 125,000 tons of green ammonia annually, scaling to over 500,000 tons over 15 years, one of the largest agreements under India’s National Green Hydrogen Mission.A significant focus of the visit was expanding legal pathways for Indian skilled workers and students to Germany, reflecting Germany’s acute labour shortages and India’s large young workforce.The two countries signed a Joint Declaration of Intent for Global Skills Partnership focusing on healthcare professionals, an area where Germany faces severe shortages. Germany announced it would establish a National Centre of Excellence for Skilling in Renewable Energy at the National Skill Training Institute in Hyderabad.Currently, approximately 280,000 Indian nationals reside in Germany, a number that has nearly tripled over the past decade. More than 60,000 Indian students are enrolled at German universities, making them the largest group of international students in the country. Over 152,000 Indians work in jobs covered by social security, with Indian workers earning an average gross wage of EUR 5,359 – well above the German median.Merz announced that Indian nationals would receive visa-free transit for Indian passport holders traveling through German airports, though Foreign Secretary Misri cautioned that internal legal processes still need completion before formal implementation.“Special emphasis has been placed on enhancing migration, mobility, and skilling. India’s talented young workforce is making a significant contribution to Germany’s economy,” Modi said.The Migration and Mobility Partnership Agreement signed in 2022 is being expanded, with Germany publishing a Skilled Labour Strategy for India in October 2024 that aimed to facilitate ethical recruitment, particularly in healthcare, engineering, and renewable energy sectors.The visit yielded significant agreements in emerging technologies. A Joint Declaration of Intent on Semiconductor Ecosystem Partnership aims to establish institutional dialogue across the semiconductor value chain, with Germany’s Infineon having opened a Global Capability Centre in Gujarat’s GIFT City.Both nations signed cooperation agreements on critical minerals, essential for batteries, semiconductors, and renewable energy, covering exploration, research and development, processing, recycling, and joint acquisition of mineral assets in third countries.Under the Green and Sustainable Development Partnership, Germany announced new funding commitments of €1.24 billion for renewable energy, green hydrogen, PM e-Bus Sewa, and climate-resilient urban infrastructure. Of Germany’s total commitment of €10 billion until 2030, approximately €5 billion has been utilized or earmarked since 2022.The partnership has already contributed to the Ahmedabad and Surat metro projects in Gujarat, the Bangalore metro, and battery storage projects in West Bengal.