Modi-Merz Summit: India & Germany to Ink Pacts on Defence, Semiconductors & Skills
India-Germany Summit: Key Pacts on Defence, Semiconductors Today

Prime Minister Narendra Modi and German Chancellor Friedrich Merz are set to hold crucial bilateral talks in Ahmedabad on Monday, with a series of significant agreements on the table. This marks Chancellor Merz's first bilateral visit to India since taking office in May last year.

Strategic Pacts on the Anvil

The high-level discussions are expected to culminate in the signing of multiple pacts covering vital sectors. Agreements on semiconductors, critical minerals, and a comprehensive defence and security roadmap are poised to be sealed. Additionally, the two nations will firm up plans to establish a skill development centre in Hyderabad, underscoring a partnership that extends beyond traditional diplomacy.

Chancellor Merz arrived in Ahmedabad early Monday, leading a 25-member delegation that includes top CEOs. Notably, the presence of executives from a leading submarine manufacturer signals that bolstering defence industrial ties is a key priority. The proposed defence roadmap is designed to strengthen the defence manufacturing network base in India, aligning with the 'Make in India' initiative.

Broadening the Strategic Dialogue

The bilateral strategic partnership, built on what sources describe as a "high degree of mutual trust and confidence" over 25 years, will form the core of the talks. The leaders are expected to discuss the transfer of German technology for India's defence preparedness.

Global geopolitical challenges will also feature prominently. The conversation will cover the war in Ukraine, where Germany is part of the European coalition against Russia, and the shared aim of fostering a multi-polar world order. The strategic challenge posed by China will be addressed, acknowledging India's view of Beijing as a threat while Germany maintains major trade ties. Reforms of the United Nations Security Council, a goal for both G-4 members India and Germany, will be discussed.

Pillars of Partnership: From Green Energy to Skills

According to sources, the partnership rests on four main pillars. First, under 'Germany and Make in India', over 2,000 German companies are already active, with more keen to join. Collaboration spans the Green Hydrogen Mission, sustainable urban mobility, and solar projects.

Second, 'Germany and Skill India' sees Germany as a leading partner, with plans for a skills centre for renewable energy professionals. Third, 'Germany and Green India' focuses on collaboration in renewable energy, next-gen infrastructure, and green hydrogen.

The fourth pillar is a next-generation technology partnership, with Germany as a key source for high-tech products in AI, semiconductors, digital, and quantum technologies following liberalised export controls.

People-to-people ties, including the mobility of about 60,000 Indian students in Germany and potential new concessions for them, will also be reviewed. The visit sets the stage for a busy season of India-EU engagement, with EU leaders visiting for Republic Day and French President Macron's arrival in February.