Navigating a world of geopolitical storms and fragile supply lines, Germany has elevated India to ‘preferred partner’ status, as articulated by Chancellor Friedrich Merz. Miriam Bauman’s ‘One World Outlook’ article spotlights the multifaceted gains.
Benefits span market expansion, China diversification, defense export growth, and R&D synergy. Germany’s 2024 ‘Focus on India’ policy forecasts India’s third-place economy by 2027, drawn by its middle-class surge and digital edge.
Trade boomed past €35B in 2025 (15% YoY rise); FDI hit $15.11B since 2000. 2,000 German entities employ 400,000, thriving in automotive, chemical, and renewable sectors.
EU-India FTA prospects offer 12% tariff relief, €20B trade uplift. Merz’s visit inked 19 MoUs across defense, tech, minerals, green power.
Defense evolves to co-production era: joint declaration fosters tech transfer, shared development. ThyssenKrupp poised for Project 75I (€5B, six AIP subs via Mazagon Dock), spurring German employment, Indian modernization, less Russia tilt.
It fortifies Germany’s 2020 Indo-Pacific policy with maritime/logistics boosts against China, protecting 90% trade via Indian Ocean.
Germany, India’s premier EU trader (25% share), saw $50B+ bilateral flow in 2024-25. Exports: $18.3B (machinery/electrics/chems); Imports from India: $10.54B (meds/auto components).
‘India First’ ambitions €50B trade by 2030 through robust chains, cementing a vital axis for future stability.