Defence Ties
India, Germany agree to deepen co-operation in defence manufacturing
This story was originally published at 15:08 IST on 12 January 2026
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NEW DELHI – India plans to deepen ties with Germany in defence manufacturing and critical and emerging technologies, Prime Minister Narendra Modi said in a joint press conference with Germany's Chancellor Friedrich Merz on Monday. The prime minister said the two countries exchanged a Joint Declaration of Intent that will provide "clear policy support to Indian companies for co-innovation and co-production in defence".
"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. New opportunities for cooperation will also open up in the space sector," Modi said.
"We have to brace ourselves against the rough winds," Chancellor Merz said. "We want to deepen cooperation of our defence industries and this has strategic significance. We signed memorandum of understanding on closer cooperation between our defence industries on development, production, and promotion of innovation and strengthening of global supply chains," he said. Merz is on a two-day visit to India.
The two leaders held talks with Indian and German business leaders at the India-Germany CEOs Forum in Gandhinagar and discussed issues of mutual and global interest including the situation in the Indo-Pacific region and the situation in Ukraine and Gaza.
The German chancellor said that the partnership between India and Germany "is a strategic asset" in the backdrop of prevailing geopolitical uncertainty. "India is an important trading partner for Germany, and EU-India trade is at a record high. We can benefit even more from mutual trade based on open markets and rules-based systems," he said.
Modi said there are also immense possibilities for cooperation between the two countries in areas of power electronics, biotech, fintech, pharmaceuticals, quantum computing, and cybersecurity, while Merz underlined the need to have a free trade agreement between India and the European Union.
"We need to conclude a Free Trade Agreement between India and the European Union. We must use this opportunity. The President of the European Union will be travelling to India by the end of this month to make progress towards it," Merz said.
Modi said that the Indo-Pacific region is a "high priority for both countries" and the two countries are going to launch a consultation mechanism to enhance cooperation in the region. He added that India and Germany "agree that reform of global institutions is vital to address global challenges".
"Today, we discussed in detail a number of global and regional issues, including Ukraine and Gaza. India stands for the peaceful resolution of all problems and disputes and supports all efforts being made in this direction," Modi said.
The Indian prime minister also invited German universities to open their campuses in India.
Earlier, the two leaders visited Sabarmati Ashram, which was founded by Mahatma Gandhi, and enjoyed flying kites at the Sabarmati riverfront after Modi inaugurated the International Kite Festival 2026. End
Reported by Asim Khan
Edited by Ashish Shirke
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