Navigating India-Germany Relations

• 14 Jan 2026

This editorial is based on “India, Germany to simplify defence trade” which was published in The Hindu on 12/01/2026. This article examines the evolving India–Germany strategic partnership, highlighting growing cooperation in defence, technology, trade and green transition. It also analyses key divergences and outlines measures to strengthen bilateral ties in a rapidly changing global order.

For Prelims:India-EU FTA,Carbon Border Adjustment Mechanism,Decarbonization, IMEEE Corridor  

For Mains: India-Germany relations, Key issues, and measures to strengthen ties. 

India–Germany relations are witnessing a strategic upswing driven by shared democratic values and expanding cooperation across economic, technological and security domains. Bilateral trade has crossed USD 50 billion, making Germany India’s largest trading partner in the EU. Recent high-level engagements have yielded MoUs in defence, clean energy, skills and innovation, alongside momentum on the India–EU FTA.The partnership is thus evolving into a broad-based strategic collaboration beyond trade alone. 

How Have India–Germany Relations Evolved Over Time? 

• Phase I: Establishment and Development Cooperation (1951–1970s): India and Germany established diplomatic relations in 1951.  
  • In the post-war period, Germany emerged as an important development and technical partner for India, supporting industrial training, infrastructure and capacity building through institutions like KfW.  
  • Engagement remained largely economic and developmental with limited political or strategic depth. 
• Phase II: Cold War Constraints (1970s–1989): Cold War alignments restricted strategic engagement, as India maintained close ties with the Soviet Union while Germany remained within the NATO bloc.  
  • Cooperation continued in economic assistance, renewable energy and technical education, but political and defence ties remained limited. 
• Phase III: Post-Cold War Reorientation (1990–1999): German reunification and India’s 1991 economic liberalisation marked a turning point.  
  • Trade, investment and technology collaboration expanded rapidly, particularly in manufacturing and engineering sectors.  
    • Political engagement deepened as both adjusted to a multipolar global order. 
• Phase IV: Strategic Partnership Phase (2000–2010): In 2000, India and Germany formally declared a Strategic Partnership, institutionalising political dialogue and expanding cooperation in science, technology, education and multilateral forums.  
  • The relationship acquired long-term strategic intent during this phase. 
• Phase V: Institutional Deepening via IGC (2011–2019): The launch of Inter-Governmental Consultations (IGC) in 2011 elevated ties to a high-trust partnership.  
  • Cooperation expanded in renewable energy, climate action, urban development, skilling and higher education, with Germany emerging as a key partner in India’s sustainable development agenda. 
• Phase VI: Strategic Convergence (2020–Present): The relations have evolved, shaped by Indo-Pacific convergence, supply-chain resilience, defence industrial cooperation, green hydrogen, critical technologies and skilled mobility. 
  • Germany has committed to providing India with EUR 10 billion by 2030 within their 2022 Partnership for Green and Sustainable Development. 
  • The marking of 25 years of Strategic Partnership (2025) and 75 years of diplomatic relations (2026) reflects the maturity of ties. 

What are the Key Areas of Cooperation Between India and Germany? 

• Defence and Security Cooperation: Defence cooperation has emerged as a key pillar of India–Germany relations, marked by deeper military engagement, strategic dialogue, and defence industrial collaboration.  
  • The Joint Declaration of Intent on a Defence Industrial Cooperation Roadmap signals a shift from a buyer–seller model to co-development. 
  • Germany’s participation in MILAN (Naval exercise), Indian Ocean Naval Symposium, and TARANG SHAKTI (Air exercise) reflect growing Indo-Pacific convergence, complemented by cooperation in advanced defence technologies such as the Eurodrone MALE UAV programme.  
  • Progress on frameworks like reciprocal logistics support, peacekeeping training, and DRDO–BAAINBw collaboration further strengthens interoperability and strategic trust. 
• Counter-Terrorism Cooperation: India and Germany unequivocally condemned terrorism and violent extremism in all forms, including cross-border terrorism.  
  • Germany strongly denounced recent terror attacks in Jammu & Kashmir and Delhi, reaffirming zero tolerance for terrorism.  
  • The ratification of the Mutual Legal Assistance Treaty and progress under the Joint Working Group on Counter-Terrorism enhance legal and institutional cooperation.  
  • Both sides are committed to strengthening cooperation against terrorist entities, including those listed under the UN 1267 Sanctions Committee. 
• Trade, Investment and Economic Cooperation: Economic engagement forms the backbone of India–Germany relations, with bilateral trade in goods and services crossing USD 50 billion in 2024, accounting for over a quarter of India’s trade with the EU and sustaining momentum into 2025.  
  • Germany has positioned itself as a gateway for Indian firms to Europe and advanced technologies.  
  • Strong support for the early conclusion of the India–EU FTA and the strengthening of the German-Indian CEO Forum reflect efforts to institutionalise private-sector cooperation across manufacturing, defence, infrastructure, pharmaceuticals, and energy. 
• Technology, Innovation, Science and Research: India–Germany ties have increasingly assumed an innovation-led character, anchored in the Innovation and Technology Partnership Roadmap covering semiconductors, digitalisation, health, bioeconomy and emerging technologies.  
  • A Joint Declaration of Intent on a Semiconductor Ecosystem Partnership and another on critical minerals aim to strengthen collaboration across R&D, manufacturing, recycling and third-country supply chains, addressing strategic vulnerabilities. 
  • The extension of the Indo-German Science and Technology Centre (IGSTC) reinforced industry–academia linkages and inclusive innovation in areas such as AI, advanced manufacturing and sustainable production.  
    • The proposed Indo-German Centres of Excellence and expanding ISRO–DLR space cooperation further institutionalise long-term scientific and technological collaboration. 
• Green and Sustainable Development Partnership: The Green and Sustainable Development Partnership is a flagship pillar of India–Germany relations, with around €5 billion of Germany’s €10 billion commitment (2022–2030) already deployed or earmarked by the 2026 mid-point.  
  • The partnership supports climate mitigation and adaptation, renewable energy, sustainable mobility, biodiversity, circular economy and skilling, while aligning closely with Indian initiatives such asPM e-Bus Sewa, National Green Hydrogen Mission, solar rooftop expansion, metro rail projects and battery storage. 
  • Joint working groups on solar manufacturing, wind energy and energy storage strengthen cooperation on technology, standards and resilient supply chains.  
• Global Governance and Strategic Convergence: India and Germany reaffirmed support for a free, open and rules-based Indo-Pacific, grounded in UNCLOS and international law, and institutionalised strategic coordination through a new Indo-Pacific consultation mechanism, complemented by Germany’s engagement in the Indo-Pacific Oceans Initiative. 
  • Shared backing for the India–Middle East–Europe Economic Corridor (IMEC) reflects convergence on transparent, sustainable and resilient connectivity.  
    • On global governance, both countries reiterate support for UNSC reforms under the G4 alliance, including expansion in permanent and non-permanent categories and early text-based negotiations. 
  • On global issues, India and Germany expressed concern over the war in Ukraine, supported efforts for a just peace under the UN Charter, welcomed progress on Gaza in line with UNSC resolutions and reiterated commitment to a Two-State Solution. 
• Education, Skilling, Mobility and People-to-People Ties: People-to-people linkages remain a core pillar of India–Germany relations, reflected in the growing presence of Indian students and skilled professionals in Germany.  
  • The Indo-German Comprehensive Roadmap on Higher Education strengthens institutional partnerships, joint degrees and research collaboration, while India has invited German universities to establish campuses under the NEP framework.  
  • The  Migration and Mobility Partnership facilitates ethical skilled migration, especially in healthcare and addresses labour-market needs through initiatives such as the Indo-German Centre of Excellence for Skilling in Renewable Energy.  

What are the Key Areas of Divergence in India–Germany Relations? 

• Strategic Autonomy vs Alliances:  India and Germany differ in their approaches to security and strategic alignment. India follows a doctrine of strategic autonomy, seeking flexibility in its external engagements and resisting formal military alliances.  
  • Germany, in contrast, is deeply embedded within NATO and EU security architectures, which shape its defence policies and threat perceptions. 
  • For instance, in the Russia–Ukraine Conflict, Germany has taken a firm position against Russia, supplying military aid to Ukraine and advocating strict sanctions within the EU framework.  
    • India, while expressing concern over civilian suffering and supporting peaceful resolution, has avoided condemning Russia explicitly . 
• Trade Protectionism: Germany generally aligns with the EU’s preference for sanctions, regulatory conditionalities and trade standards as tools of foreign policy.  
  • India, however, remains cautious about sanctions and extraterritorial trade restrictions, viewing them as disruptive to global supply chains and development goals. 
  • For instance, EU regulatory regimes such as the Carbon Border Adjustment Mechanism (CBAM), data protection norms, and environmental conditionalities, which India sees as potential non-tariff barriers affecting its exports. 
    • India’s steel and aluminum exports to the EU fell 24.4%, from USD 7.71 billion in FY24 to USD 5.82 billion in FY25, underscoring weak European demand and tighter trade norms with the slowdown also spilling over into India–Germany bilateral trade. 
• Climate Action Divergence: India and Germany broadly cooperate on climate change, yet differences persist over pace, responsibility and financing. 
  • While Germany advocates for a rapid, legally binding "phase-out" of all fossil fuels to meet 1.5°C targets, India maintains that "climate justice" requires a distinction between the "luxury emissions" of the West and the "survival emissions" of the developing world.  
    • This divergence manifests in heated negotiations over timelines, where New Delhi insists on a "phase-down" approach that allows for continued coal usage to ensure energy poverty is eliminated before a total transition. 
  • Germany advocates faster emissions reductions and stricter climate standards, while India stresses climate justice, equity and common but differentiated responsibilities (CBDR).  
    • India seeks assured climate finance and technology transfer, whereas Germany often operates within broader EU fiscal and regulatory constraints.  
• Defence Exports and Technology Transfer Issues: Although defence cooperation is expanding, Germany’s stringent export control regimes and cautious approach to sensitive technologies sometimes slow progress. 
  • India seeks faster approvals, deeper technology transfer and local manufacturing rights, while Germany balances commercial interests with domestic political oversight and alliance considerations.  
  • This creates occasional friction in timelines and scope of defence industrial collaboration. 
• Indo-Pacific & China Outlook: India views China primarily through the lens of territorial integrity, border security and regional power balance, whereas Germany’s China policy has historically been shaped more by economic interdependence, though this is changing. 
  • While both support a free and open Indo-Pacific, Germany’s engagement is still evolving from an economic to a strategic outlook, creating differences in urgency and threat perception. 
• Consular and Legal Frictions (The Ariha Shah Case): A specific, persistent irritant in bilateral relations is the legal dispute over the custody of Ariha Shah, an Indian child taken into German foster care in 2021.  
  • This case has become a symbol of cultural and legal disconnect, with the Indian government and public viewing the German state's refusal to return the child as a violation of her cultural and linguistic rights. 
  • India seeks the repatriation of the child to an Indian foster home to preserve her identity, while Germany maintains that its judicial process is independent and focused solely on "child welfare" laws. 

What Measures are Needed to Strengthen India-Germany Ties ?  

• Institutionalising Strategic Dialogues: India and Germany must further institutionalise strategic dialogue beyond episodic high-level visits.  
  • The newly announced Indo-Pacific consultation mechanism and Track 1.5 Foreign Policy and Security Dialogue should be made regular, outcome-oriented and linked to defence planning, maritime security and cyber security cooperation. 
• Advancing Defence Industrial Cooperation: A critical measure is the effective operationalisation of the Defence Industrial Cooperation Roadmap.  
  • Both sides should move from intent to implementation by fast-tracking co-development and co-production projects, enabling deeper technology transfer and joint intellectual property creation.  
  • Germany can benefit from India’s skilled workforce, cost competitiveness and scale, while India gains from German expertise in precision engineering, advanced materials and defence electronics. 
• Push for Acceleration of ndia–EU FTA: India and Germany should push for early conclusion and balanced implementation of the India–EU Free Trade Agreement. This would reduce tariff and non-tariff barriers, improve market access and provide regulatory certainty to businesses. 
  • Both countries should also expand cooperation in MSMEs, startups and innovation ecosystems through joint incubators, easier access to finance and digital platforms.  
• Enhanced Convergence on Climate Action: India and Germany should deepen climate cooperation by ensuring that ambitious climate goals are matched with adequate finance, technology transfer and capacity building.  
  • Expanding concessional finance under the GSDP, scaling joint initiatives in green hydrogen, battery storage and urban mobility, and co-developing climate-resilient technologies can bridge developmental gaps.  
• Strengthening Cooperation in Emerging and Critical Technologies:To future-proof the partnership, India and Germany must intensify collaboration in semiconductors, AI, quantum technologies, critical minerals, space and biotechnology.  
  • Establishing joint research hubs, shared standards, and coordinated industrial strategies will reduce dependence on concentrated global supply chains.  
  • Facilitating smoother movement of researchers, engineers and innovators, along with protection of intellectual property, will further deepen trust and innovation-led growth. 
• Enhancing People-to-People Ties and Skilled Mobility: People-to-people engagement remains a long-term stabiliser of bilateral relations.  
  • Ethical and mutually beneficial skilled migration frameworks, especially in healthcare, renewable energy and advanced manufacturing, should be scaled up under the Migration and Mobility Partnership Agreement. 
• Managing Differences through Dialogue and Mutual Sensitivity: Regular diplomatic dialogue can help address differences on Russia–Ukraine, human rights discourse, sanctions and trade regulations such as CBAM. 
  • Mutual sensitivity to each other’s strategic compulsions, domestic constraints and development priorities will prevent misunderstandings and preserve trust.  
• Expanding Cooperation in Global Governance and the Global South: India and Germany should enhance coordination in multilateral forums on UN reforms, climate finance, health security and digital governance.  
  • Scaling up triangular development cooperation in Africa, Asia and Latin America will combine India’s development experience with Germany’s financial and technical capabilities. 

Conclusion: 

India–Germany ties are moving towards a 3D partnership- Defence, Digitalisation and Decarbonisation—anchored in shared democratic values and strategic trust. By combining India’s scale, skills and growth momentum with Germany’s technology, capital and industrial strength, the partnership can become future-ready. Constructive dialogue to manage differences will keep cooperation resilient amid global uncertainty. Together, India and Germany can emerge as key architects of a secure, sustainable and rules-based global order. 

Drishti Mains Question

How can India and Germany leverage their complementary strengths to promote resilient supply chains, green transition and reformed global governance? Discuss in the context of emerging geopolitical and economic uncertainties.

 

FAQs 

1. Why is Germany important for India’s Indo-Pacific strategy?
Germany supports a free and open Indo-Pacific, maritime security, and supply-chain resilience. 

2. What is the focus of India–Germany defence cooperation? 
Co-development, co-production, and long-term defence industrial collaboration. 

3. Why is the India–EU FTA crucial for India–Germany ties? 
It will boost trade, investment flows, and reduce regulatory and tariff barriers. 

4. How do India and Germany cooperate on climate action? 
Through the Green and Sustainable Development Partnership and green hydrogen initiatives. 

5. What anchors people-to-people ties between the two countries? 
Education exchanges, skilled mobility, diaspora contribution, and cultural cooperation.

UPSC Civil Services Examination, Previous Year Question (PYQ)

Prelims

Q. ‘Broad-based Trade and Investment Agreement (BTIA)’ is sometimes seen in the news in the context of negotiations held between India and (2017)   

(a) European Union   

(b) Gulf Cooperation Council   

(c) Organization for Economic Cooperation and Development   

(d) Shanghai Cooperation Organization   

Ans: (a)

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Mains

Q. “Africa was chopped into states artificially created by accident of European competition”. Analyze. (2013)

Q. To what extent can Germany be held responsible for causing the two World Wars? Discuss critically (2015)