Trade, talent, tech on table as Merz’s visit begins today

During German Chancellor Friedrich Merz’s two-day visit to India, which begins on Monday, India and Germany are set to sign several agreements across sectors such as defence, mobility, education and skilling — including the teaching of German language in more Indian schools — investment, critical technology supply chain, green energy, and semiconductor, as Berlin is keen to double its trade with New Delhi from the current level of a little over $50 billion, with the India~European Union (EU) free trade agreement (FTA) on the anvil.

- ARCHIS MOHAN

As many as 25 chief executive officers (CEOs) of top German companies will accompany Merz to India. The German Chancellor, who is eight months into his job, will meet Prime Minister (PM) Narendra Modi in Ahmedabad on Monday, where he will also visit the Sabarmati Ashram. On Tuesday, Merz will be in Bengaluru, where he will visit the Indian Institute of Science and German firm Bosch’s offices.

Merz’s January 12-13 visit to India will be his first to Asia as German Chancellor and is also significant as it comes a fortnight before top EU leaders visit India later this month, when they are to be the chief guests at this year’s Republic Day parade and the two sides are slated to sign the India-EU FTA on January 27. Germany has been strongly backing the FTA.

Germany is India’s largest trading partner in the EU, and bilateral trade in goods and services between the two countries reached $51.23 billion in 2024-25. During his visit to India in September, German Foreign Minister Johann Wadephul met the PM and later said his country is keen to double bilateral trade, which currently stands at a little under 31 billion euros. In recent months, especially after the US increased tariffs on Indian goods to 50 per cent, New Delhi has explored diversifying its export markets.