PM Modi announces ‘limitless’ India-Germany economic partnership

Prime Minister Narendra Modi on Monday (January 12) said India and Germany have decided to elevate their economic engagement into a “limitless” partnership, expanding cooperation beyond traditional sectors into strategic and emerging areas. His remarks come on the first day of German Chancellor Friedrich Merz’s first official visit to India.

‘Growing trust between India, Germany’

Addressing the India-Germany CEOs Forum, PM Modi said the decision reflects growing trust between the two countries and Germany’s recognition of India’s central role in its diversification strategy.

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“We have decided to make this seamless economic partnership limitless. This means that along with traditional economic sectors, there will now be deeper cooperation in strategic sectors as well. In the defence sector, we are exchanging a Joint Declaration of Intent today,” said PM Modi as quoted by ANI.

‘India-EU FTA to materialise soon’

The PM further stated that India continues to record growth of over eight per cent, driven by wide-ranging reforms in sectors such as defence, space, mining and nuclear energy. According to the Prime Minister, reduced compliance burdens and improvements in the ease of doing business have positioned India as a global symbol of growth and optimism.

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PM Modi also expressed confidence that the India-EU Free Trade Agreement would materialise soon, opening a new chapter in trade, investment and bilateral partnerships. Inviting German companies to combine their precision and innovation with India’s scale and speed, he assured policy stability and a long-term vision.

“The path is clear for you here. I invite German precision and innovation to combine with India’s scale and speed. You can manufacture in India, take full advantage of domestic demand, and export without any restrictions,” he said.

Merz on India-EU FTA’s importance

Speaking at a joint press conference with PM Modi in Gandhinagar, Chancellor Merz underlined the importance of concluding negotiations on the India-EU FTA to unlock the full potential of bilateral economic ties.

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“To tap into the full potential of India-Germany economic relations, we need to conclude the negotiations on a free trade agreement between India and the European Union,” he said, describing India as “a desired partner” and “a partner of choice” for Germany.

Elaborating further, Merz said the international order is undergoing significant change and highlighted the strategic importance of defence cooperation.

“The world order is changing as we meet here. We have to brace ourselves against the rough winds,” he said, adding that the two sides have signed a Memorandum of Understanding to enhance cooperation in defence industry development, production, innovation and global supply chains.

PM's invitation to German universities

During the joint press conference, PM Modi also invited German universities to establish campuses in India under a comprehensive roadmap for higher education cooperation. He thanked Chancellor Merz for announcing visa-free transit for Indian citizens, calling it a step that would strengthen people-to-people ties.

“The comprehensive roadmap on higher education that we have developed today will give a new direction to our partnership in the field of education,” PM Modi said.

Ukrain, Gaza issues discussed

The two leaders discussed global and regional issues, including Ukraine and Gaza, and reiterated their shared view that terrorism poses a grave threat to humanity. PM Modi also stressed the need for reform of global institutions, citing joint efforts through the G4 group to reform the UN Security Council.

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Highlighting cooperation in climate, energy, technology and defence, he said upcoming green hydrogen projects could be game changers and noted that defence and security cooperation reflects mutual trust and a shared vision.

Chancellor Merz’s visit coincides with 75 years of diplomatic relations and 25 years of the India-Germany Strategic Partnership. He is in India from January 12 to January 13 and is scheduled to visit Bosch and the Centre for Nano Science and Engineering before departing for Germany.