India and Germany will enhance defence trade with a focus on co-production and co-development, Prime Minister Narendra Modi said on Monday, as the two countries signed an agreement to strengthen bilateral defence industrial cooperation.
Welcoming German Chancellor Friedrich Merz to India, Mr Modi said the two sides will launch a consultation mechanism to boost cooperation in the Indo-Pacific region. Chancellor Merz, on his first visit to Asia since taking office in May 2025, said that global politics faces uncertainty and a closer partnership is needed.
Mr Modi said growing defence cooperation reflects mutual trust and a shared vision. He thanked Germany for easing defence trade processes and said a roadmap will be prepared to expand industry ties. Several agreements, including one on defence industrial cooperation, were signed along with MoUs in areas such as skilled mobility, sports, and higher education.
The leaders noted that the visit marked 25 years of strategic partnership and 75 years of diplomatic relations. They discussed Ukraine, Gaza, and terrorism, with India reiterating support for peaceful solutions. Mr Modi said trade has crossed 50 billion dollars, adding energy to ties.
Chancellor Merz urged cooperation on global supply chains and free trade. Both sides backed the India-EU trade pact and eased transit.
