Germany Must Keep Its Focus On India
Aditi Mukund and Joel Sandhu argue that delays in deepening cooperation between India and Germany will weaken long-term economic and security prospects, and miss opportunities to tackle pressing global challenges.
The incoming German government faces no shortage of challenges. They will be tasked with reviving Europe's largest economy after two consecutive years of economic contraction, driven by high energy costs and rising Chinese competition. And they will need to address immigration, which emerged as a second key issue for voters during the recently concluded election campaign. Adding to these pressures are uncertainties in transatlantic relations with the Trump administration and the ongoing war in Ukraine, both of which demand a careful recalibration of Germany’s foreign relations. Strategic global partnerships will be essential to overcoming the challenges posed by this complex domestic landscape and growing geopolitical fragmentation. Germany’s new coalition government would do well to build on the work of its predecessor and continue to deepen the country’s strategic ties with India.
The partnership between Germany and India gained momentum in late 2024. That year, in October alone, Germany released its Focus on India document and Skilled Labour Strategy: India, and India hosted both the 7th India-Germany Intergovernmental Consultations (IGC), which followed the visit of a German Bundestag delegation (alongside Australian parliamentarians) to New Delhi as part of the Robert Bosch Stiftung Global Dialogue program, and the 18th Asia-Pacific Conference of German Business (APK). In Germany, these developments reflected a non-partisan and cross-ministerial effort to strengthen relations with India in hopes of bolstering both countries’ economic resilience, innovation, and geopolitical stability. To India, it sent a strong message about the high standing it holds among political decision makers in Germany.
Considering the difficult economic and political dynamics within the country and on the global stage, Germany’s new coalition has a lot to gain from building on this promising partnership with India. Four areas where sustained Indo-German collaboration and strategic initiatives can be broadened and deepened for mutual benefit include maritime security in the Indo-Pacific, climate change and the energy transition, trade and migration, and applied research and technology partnerships.
Maritime Security in the Indo-Pacific
Germany and India share an interest in securing a free, open and stable Indo-Pacific region. Although the Indo-Pacific is geographically distant from Germany — and Europe more broadly — they have deep economic and security interests in the region. 20 percent of German trade is conducted in the Indo-Pacific, and half of Germany’s sea-borne supply traverses the Indian Ocean along with a majority of European sea trade. The region is also key to global trade overall: annually, 30 percent of maritime trade passes through the South China Sea and 80 percent through the Indian Ocean. For India, maintaining a rules-based order in the Indo-Pacific is not only important for global economic prosperity, but also maintaining regional stability.
Germany is trying to increase its presence in the Indo-Pacific. In 2024, Germany conducted its second Indo-Pacific deployment with the German Navy’s frigate “Baden-Württemberg” sailing through the Indian Ocean and joining naval exercises with India, Japan, the US and other allies. One aim of these efforts is to keep trade routes open. Another is to counterbalance China’s presence and sometimes aggressive behavior in sea lanes vital for global trade, including the South China Sea, which the Baden-Württemberg crossed. As the Indo-Pacific is an increasingly crowded strategic arena, Germany’s role as an extra-regional power must be clearly defined.
Meanwhile, India has strengthened its role as a “net security provider” in the region. Especially since the launch of its 2015 Maritime Security Strategy, it has been deploying warships, drones and surveillance aircraft for humanitarian missions, counterterrorism and anti-piracy operations. India’s new maritime focus also comes as China bolsters land and sea capabilities in the South China Sea and the Indian Ocean. Germany’s Focus on India policy seemingly recognizes this ramping up, putting new emphasis on India as a “security partner.”
The German and Indian governments should focus on two parallel approaches to realize their “convergences on key foreign and security policy challenges.” First, as set out in the Focus on India statement, they should pursue “practical cooperation” between their armed forces and “reliable armaments cooperation.” This means the German Navy needs to ramp up maritime activities in collaboration with its Indian counterpart. They should pursue more complex maneuvers such as replenishment-at-sea exercises, joint drills for offensive and defensive scenarios, and crew member exchanges between ships to gain insights into the life and work of Indian naval officers. Such cooperation not only serves the purpose of professional training but also promotes inter-cultural understanding and personal contact between the crews.
Second, the two governments need to act on their commitment to “enhanced industrial-level cooperation in the defense sector” focusing on “technology collaboration, manufacturing/co-production and co-development of defense platforms and equipment.” Doing this will also diversify Indian military imports away from Russia (which accounted for 36% of India’s defense imports from 2019-2023). The recent announcement by the German engineering and steel production conglomerate Thyssenkrupp of their plan to team up with India’s state-owned Mazagon Dock Shipbuilders (MDS) to build six advanced conventional submarines for the Indian Navy is a welcome move. The new German government can expect more collaboration between India and Germany on defense when the requirements, price expectations and availability match.
India is a key security player in the Indo-Pacific and with its growing economic and technological importance globally, it is a prime candidate for Germany and Europe as they continue to seek new, deeper and more diverse bilateral partnerships. If Germany plans to return to the Indo-Pacific anytime soon and wishes to demonstrate its commitment to upholding freedom of navigation in the Indian Ocean, it will need to be ready to sail alongside India
Climate and Energy
Other areas ripe for deeper cooperation between Germany and India are developing clean energy and tackling climate change. The latter constitutes a major economic and security issue for India, and increasingly for Germany and Europe.
If the Indian economy and population continue to grow at the current trajectory, so will its energy needs and consumption. This is particularly true for major Indian cities where the number of inhabitants is growing steadily as more and more people move from rural to urban areas seeking job opportunities and a better life. Given that India is dependent on importing around 40% of its energy, massive growth in this domain will set the country’s energy needs up to dominate the global energy market.
It will also mean an increase in India’s greenhouse gas emissions as well as its vulnerability to climate change. India is already the world’s third largest emitter of greenhouse gases after China and the US, but the government under Prime Minister Narendra Modi has made some commitments aimed at reducing its footprint. For example, it has made an immense push to reduce the country’s dependence on coal, and at the International Climate Conference in Glasgow (COP26) in 2021, it announced a new target of increasing renewable energies to a volume of 450 gigawatts by 2030. This would mean tripling its renewable energy capacity in less than ten years.
Expanding their cooperation on clean energy/renewables and a green energy transition offers many potential benefits to both Germany and India and existing Indo-German initiatives — such as the Green Hydrogen Task Force and the Indo-German Energy Forum — provide an already strong foundation to build upon. The agreement signed between Germany-based Uniper and Greenko ZeroC to source green ammonia from India is an encouraging example of the role India can play in helping Germany secure a supply of low carbon hydrogen products. Indo-German collaboration on the deployment of flexible renewable electricity and other hydrogen products, such as e-methanol and sustainable aviation fuels, are promising areas to further advance research and development.
There is also a strong economic incentive for Germany to stay invested — both politically and financially — in the energy transition of the world’s most populous country. With Indian energy market poised to grow by such enormous proportions in the coming years, Germany can build on its EUR 10 billion commitment to drive forward the energy transition in India by promoting clean energy initiatives that also help India achieve its climate targets. Organizations such as the German Solar Association are well positioned to link up with businesses in certain Indian states, such as Gujarat and Andhra Pradesh, to drive rapid expansion in solar and wind energy generation. Existing infrastructure, favorable business environments, and high renewable energy potential support these states as key landing zones for international cooperation and Indo-German B2B initiatives. Achieving the already ambitious — and hopefully multiplying — goals of Indo-German cooperation on renewable energy will require focused, state-level implementation across India’s diverse regions.
New Delhi, for its part, seeks greater cooperation from its partners for its energy security. While the European Union is actively supporting climate change adaptation programs with development funding, there is room for Germany to become more involved in this field. Germany should expand the work done by its KfW Development Bank on upgrading energy distribution grids to better absorb fluctuations when they're fed by green energy, which reduces both power losses and greenhouse gas emissions. By strengthening India’s distribution networks and their efficient management, Germany could support India’s drive to ensure a stable power supply for its citizens and thus its economic development.
Trade, Migration and People-to-People Relations
India and Germany have a robust economic partnership, with bilateral trade reaching approximately €26 billion in the 2022-2023 fiscal year. Germany is India's largest trading partner within the EU and India ranks among Germany's top trading partners in Asia, but there is potential for even greater mutual benefit through trade. In February 2025, discussions on the long-stalled EU-India Free Trade Agreement (FTA) were revived, following a visit by Ursula von der Leyen, president of the European Commission, to India. The FTA offers a moment of synergy for both Germany and the EU’s approaches to India. The two sides should seize the momentum of the current moment to accelerate the finalization of the FTA. Europe urgently needs stronger trading partners amidst shifting global trade dynamics, and with India also facing new tariff pressures from the US, the need for stable economic partnerships is paramount.
That said, while waiting for an FTA breakthrough, Germany and India should continue to prioritize sector-specific trade. This includes machinery, electronics, chemicals, aviation and vehicles; however, trade in these goods should not outpace parallel collaborations on climate, energy and technology. Ensuring trade remains future-ready and strategically aligned will also require India and Germany to expand their cooperation in artificial intelligence (AI), semiconductors and digital infrastructure — areas already shaping Indo-German investments.
In addition to trade, Germany and India should mainstream their already successful efforts to facilitate smoother business collaboration and deeper people-to-people ties. At the 7th India-Germany Inter-Governmental Consultations (IGC) in 2024, both countries reaffirmed the success of the Fast-Track System for Indian companies to operate in Germany. Established in 2017, this system streamlines permits, visas and regulatory processes, making business operations smoother. Other initiatives like the German Indian Startup Exchange Program (GINSEP) and its partnership with MeitY Startup Hub have strengthened the startup ecosystem — which both countries see as key to their lucrative economic partnership — facilitating market entry, knowledge sharing and investment. High-level momentum will only translate into results if these platforms are equipped with the capacity and capability to scale and sustain meaningful bilateral collaborations.
Trade, migration, and mobility are deeply interconnected. Strong economic ties create demand for skilled professionals and the movement of talent, students and entrepreneurs strengthens trade and investment networks. Given that India has a surplus of skilled workers and a shortage of jobs, and Germany has a shortage of skilled workers in some key sectors, facilitating the easy movement of workers across borders comes with benefits for both countries. India and Germany should continue their Migration and Mobility Partnership Agreement to help boost the German economy by bringing in highly skilled Indian professionals to build up high-growth sectors in the German economy. In turn, remittances sent back to India can help reduce household-level poverty and increase economic activity in the country. Germany’s 2024 Skilled Labour Strategy for India outlines concrete measures to attract and integrate talent. This is a crucial step toward bridging the gap between economic potential and policy action, but sustained efforts will be needed to translate strategy into reality.
Germany should also consider more effectively leveraging the linkages created by the India diaspora population, already living within its borders. Over 34,000 Indian students are currently studying in Germany, making them the second-largest group of foreign students in the country. This growing Indian presence, along with professionals in high-demand sectors, is gradually shaping business and academic exchanges. However, compared to the US and the UK, where a well-established Indian diaspora has influenced economic engagement, Germany has yet to fully take advantage of these connections. A deeper cultural and business understanding of India would enhance trade flows, encourage investment, and open new areas for collaboration. Given India’s scale, a stronger focus on state-to-state and city-to-city partnerships could enhance cooperation. With a few exceptions, this remains a severely underutilized opportunity.
Applied Research and Technology
Applied research and technology partnerships have long been a cornerstone of Indo-German relations, formalized first in 1974 with an intergovernmental agreement on scientific research and technological development. This agreement laid a strong foundation for decades of joint initiatives, but the need for stronger, more advanced research, particularly on environmental issues, will only continue to grow in our increasingly complex world. Because applied research and technology development are areas where Germany excels, and where India is producing both today’s and tomorrow’s talent, collaboration in this domain is a clear win-win.
There are many partnerships already in place, which deliver tangible benefits, and they must be continued and built upon. The Indo-German Science and Technology Centre (IGSTC) drives applied research in advanced manufacturing, embedded systems and sustainable energy, bridging academia and industry. The Indo-German Digital Dialogue, launched in 2017, shapes cooperation on internet governance, tech regulation and digital transformation, fostering a pro-innovation ecosystem. High-level engagements, including the 7th IGC in October 2024, reaffirmed both nations’ commitment to innovation, mobility and sustainability and put forward a structured roadmap for digital cooperation. It is now imperative to advance this research partnership into areas that align with and will enhance bilateral relations. Continued development must be a focal point of this collaboration. Joint efforts in energy, water management, land use and waste management are essential as both countries navigate the complexities of environmental sustainability. By leveraging Germany's advanced research capabilities and India's large-scale implementation potential, these partnerships can develop scalable solutions to pressing environmental issues.
Conclusion
Maritime security, climate, trade and applied research and technology intersect in ways that demand a more integrated approach from global leaders. It is impossible to talk about security in the Indo-Pacific today without acknowledging the growing threat of climate change, which exacerbates regional instability. Similarly, discussions on the green energy transition cannot be separated from the need for equitable distribution of its benefits, ensuring that economic and social gains reach all sections of society. Failing to act collectively on these issues now risks deepening vulnerabilities and missing critical opportunities for cooperation.
Given their shared goals, complimentary capabilities, and already strong ties, India and Germany are well placed to tackle some of these pressing global challenges together. As their approach to working together, especially under new German leadership, continues to evolve in the years ahead, leaders in both countries should focus on balancing the breadth and depth of their partnership to ensure the right combination of long-term commitments and agility to adapt to new challenges. While on the one hand, focused collaboration in key sectors builds trust and proves that cooperation delivers results, a diverse agenda ensures the partnership remains flexible and responsive to changing priorities. But one thing is sure: delays in deepening cooperation will weaken long-term economic and security prospects, leading to disappointment and frustration. A fragmented and highly contested geopolitical landscape and an unpredictable administration across the Atlantic leave no room for hesitation. Germany’s new government cannot afford to lose its focus on India.
Aditi Mukund is German Chancellor Fellow at the Global Public Policy Institute (GPPi), and Joel Sandhu is Head of Global Dialogue and Facilitation at GPPi.
Photo by Emiliano Arano
