Prime Minister Narendra Modi, in a significant meeting with German Chancellor Friedrich Merz in Ahmedabad on Monday, celebrated a historic milestone in the bilateral relationship: trade between India and Germany has surpassed the $50 billion mark for the first time. The leaders' high-level talks, which coincided with the India-Germany CEOs Forum, focused on deepening economic and strategic cooperation across multiple sectors.
A Partnership Built on Confidence and Commerce
Prime Minister Modi highlighted that the robust economic engagement is a testament to the strong confidence German industry has in India's potential. Over 2,000 German companies have established a long-term presence in the country, contributing to a bilateral trade in goods and services that reached $51.23 billion in the 2024–25 financial year. Germany solidifies its position as India's largest trading partner within the European Union, accounting for roughly a quarter of India's total trade with the bloc.
The services trade segment saw particularly strong growth, rising by 12.5% in FY 2024–25 to a record $16.65 billion. On the investment front, Germany stands as the ninth-largest foreign direct investor in India, with cumulative inflows totaling $15.40 billion from April 2000 to June 2025. In the last fiscal year alone, German investments amounted to $469 million.
Beyond Trade: Tech, Clean Energy, and Defence
The discussions between the two leaders extended far beyond pure commerce. PM Modi pointed to the steady advancement in technology cooperation and shared priorities in renewable energy. To institutionalize this collaboration, the two nations decided to establish an India-Germany Centre of Excellence. This platform is designed to be a shared hub for knowledge exchange, technology transfer, and joint innovation, particularly in clean energy.
Chancellor Merz's first official visit to India included comprehensive delegation-level talks that reviewed existing partnerships in trade, investment, technology, education, and skilling. The dialogue also explored new opportunities in critical areas like defence, security, science, innovation, research, and sustainable development. Several Memorandums of Understanding were signed during the event, underscoring the commitment to expand institutional and sectoral ties.
A Foundation for Future Growth
The meeting in Ahmedabad marks a pivotal moment in the India-Germany strategic partnership. The record-breaking trade figures, coupled with the launch of the Centre of Excellence and reinforced dialogue on future-oriented sectors, lay a strong foundation for the next decade of collaboration. The engagement signals a mutual commitment to transforming a robust trading relationship into a comprehensive alliance built on technology, sustainability, and shared strategic interests.
