Merz and Modi agree on closer German-Indian defence cooperation

Germany and India aim to expand their cooperation in the defence sector, with a corresponding declaration of intent signed by their defence ministries signed during Chancellor Friedrich Merz’s visit to the Indian city of Ahmedabad on Monday.

Merz was welcomed earlier by Modi in what is his home region, where they first visited a place linked to national hero Mahatma Gandhi

Germany’s TKMS to build submarines in India

Contracts for specific projects were not initially concluded, but India plans to build six submarines in collaboration with the German company Thyssenkrupp Marine Systems (TKMS) in Mumbai, valued at €8 billion ($9.34 billion).

The signing of an agreement on this is expected shortly and could pave the way for further cooperation.

According to the latest statistics from the Stockholm International Peace Research Institute (SIPRI), India is considered the world’s largest arms importer.

Between 2019 and 2023, the country sourced 36% of its armaments from Russia, although the trend is declining. German arms exports to India could therefore also reduce India’s dependency on Russia.

A total of 27 agreements signed

In total, 27 declarations of intent and announcements were signed on the sidelines of the talks between Merz and Indian Prime Minister Narendra Modi – ranging from cooperation in the extraction of rare earths to the promotion of hockey talent in both countries and the recruitment of skilled workers for the German health-care system.

The recruitment of skilled workers from India has already been advanced by previous governments.

According to the Federal Employment Agency, the number of Indians employed in regular jobs in Germany has risen from just under 25,000 in 2015 to nearly 170,000 in 2025.