India-Germany Trade Surges Past $50 Billion As Modi, Merz Boost Ties
Overview
Prime Minister Modi and German Chancellor Friedrich Merz met to solidify economic cooperation, marking a milestone as bilateral trade between India and Germany surpassed $50 billion. The discussions, held alongside the India-Germany CEO Forum, focused on expanding trade, investment, technology, and renewable energy collaboration, including the establishment of a new Centre of Excellence.
Trade Milestone Reached
India and Germany have achieved a significant economic milestone, with bilateral trade surging past the $50 billion mark. Prime Minister Narendra Modi highlighted this achievement during high-level engagements with German Chancellor Friedrich Merz, noting it represents the highest level ever recorded between the two nations. This surge underscores the robust economic partnership and growing confidence in India's market.
Bilateral trade in goods and services reached $51.23 billion in the 2024–25 fiscal year, solidifying Germany's position as India's largest trading partner within the European Union. Germany now accounts for approximately one-fourth of India's total trade with the EU, a testament to the deepening economic integration.
Deepening Strategic Cooperation
Beyond trade figures, the leaders focused on strategic collaboration in technology and clean energy. The establishment of an India-Germany Centre of Excellence was announced, designed to foster shared knowledge, technology transfer, and innovation. This initiative signals a commitment to advancing cooperation in critical future-oriented sectors.
The meeting, which coincided with the India-Germany CEO Forum, brought together top executives from both countries to explore opportunities for expanded trade and investment. Several Memorandums of Understanding were signed, formalizing efforts to broaden institutional and sectoral cooperation.
Investment Landscape
Chancellor Merz's visit, his first official trip to India, involved extensive delegation-level talks. Discussions reviewed existing partnerships across trade, investment, education, and mobility, while also exploring new avenues in defence, security, science, and sustainable development. Germany is currently the ninth-largest foreign direct investor in India, with cumulative inflows totaling $15.40 billion from April 2000 to June 2025. German investments in the 2024–25 fiscal year alone amounted to $469 million.
