By choosing India as its first travel destination, Merz wants to live up to this claim. India has now replaced China as the world’s most populous country and is the fifth strongest economy.
But it is also a country that moves “between worlds” and maintains close relations with both Russia and Western countries. Modi only received Russian President Vladimir Putin in New Delhi in December and is linked to Russia through the Brics group of countries.
India continues to purchase Russian oil on a large scale, and Putin uses the revenue to finance his war against Ukraine. India, unlike most other countries in the UN General Assembly, has not condemned this war, but its contacts with Russia could perhaps be helpful in diplomatic efforts to end the war. This is all what the Chancellor’s visit will be about.
India’s close ties with Russia also include the fact that the Indian armed forces are still predominantly equipped by Moscow. Germany would like to help change that. Thyssenkrupp Marine Systems is currently negotiating the sale of six submarines to the Indian Navy. There is also interest in India in the Airbus A400M transport aircraft.
There will probably be no concrete conclusions reached during the Chancellor’s visit. However, a declaration of intent is to be signed by the two defense ministries to strengthen cooperation between the two countries’ defense companies.
Increased economic cooperation could also help loosen India’s ties with Russia. There is still room for improvement at this point. India is only in 23rd place among Germany’s trading partners. “In view of its economic dynamism, young population and growing industrial base, India is rapidly becoming more relevant for our companies,” says the head of foreign trade at the German Chamber of Commerce and Industry (DIHK), Volker Treier.
The conclusion of a free trade agreement between the EU and India would provide a boost. The negotiations began 18 years ago and were interrupted for several years. There is still no conclusion in sight at the EU-India summit planned for the end of January.
In addition, it will again be about recruiting skilled workers from India, for which the traffic light government already decided on a strategy in October 2024. According to the Federal Labor Office, the number of Indians in Germany who are subject to social security contributions rose from almost 25,000 to almost 170,000 between 2015 and 2025. And with almost 60,000, the largest group of foreign students comes from India.
