EU-India Free Trade Deal in Focus as Merz Meets PM Modi Today

Prime Minister Narendra Modi will hold talks with German Chancellor Friedrich Merz in Ahmedabad on Monday, with discussions expected to cover a wide range of issues including trade, investment, critical technologies and defence cooperation. Merz’s visit comes at a time of heightened geopolitical uncertainty, and both leaders are also likely to exchange views on key global and regional challenges. Notably, this is Merz’s first visit to Asia since assuming office as German Chancellor.

Trade and investment ties are set to be a major focus of the talks, as India looks to deepen its economic engagement with Europe amid evolving global trade dynamics. Germany is India’s largest trading partner within the European Union, and both sides are keen to further expand commercial ties, boost market access and enhance cooperation in emerging sectors.

Defence and security cooperation is another key area on the agenda. Bilateral defence ties have strengthened in recent years, and discussions may include progress on a potential inter-governmental agreement for the supply of six advanced stealth submarines to the Indian Navy. German defence major ThyssenKrupp Marine Systems and India’s Mazagon Dock Shipbuilders are currently engaged in negotiations for the proposed deal, which would mark a significant step in defence collaboration and support India’s domestic manufacturing goals.

India and Germany also cooperate closely on security matters, including counter-terrorism. Both countries have a joint working group on counter-terrorism, and Germany is set to deploy a naval liaison officer at India’s Integrated Fusion Centre – Indian Ocean Region, reflecting growing maritime security cooperation.

Apart from official talks with Prime Minister Modi, Chancellor Merz will visit the Sabarmati Ashram, attend the International Kite Festival at the Sabarmati Riverfront and participate in a skill development programme in Ahmedabad. He will later travel to Bengaluru for engagements focused on technology and innovation.
India-Germany Partnership

Germany remains one of India’s most important partners in Europe. Bilateral trade in goods and services crossed USD 51 billion in 2024-25, while Germany is among the top foreign investors in India, with over 2,000 German companies operating across the country. Merz’s visit comes ahead of a proposed India-EU leadership meeting, where progress on the long-pending India-EU free trade agreement is also expected.