New Delhi: German Chancellor Olaf Scholz, in talks with Indian Prime Minister Narendra Modi, expressed Germany’s aim to deepen defence collaboration and enhance military ties with India. Traditionally distant in defence, Germany is now positioning itself as a partner in India’s effort to diversify from its historical reliance on Russian arms, aligning with broader Western efforts to counter China’s regional influence.
Scholz emphasized a need for increased cooperation and, along with several German ministers, highlighted Germany’s strategic interest in India’s vast market as a balance to China. German company Thyssenkrupp is among the finalists in India’s $5 billion submarine project, a crucial part of Germany’s defence proposals. Renewable energy also featured prominently, with both nations exploring projects in transport infrastructure, and Germany’s state lender KfW committing €10 billion to help India achieve its climate targets.
At the Asia-Pacific conference, Modi underlined India’s infrastructure transformation, noting significant investment opportunities for German and Indo-Pacific companies. Scholz also pressed for a swift finalization of the India-EU Free Trade Agreement (FTA), urging a resolution within months. Indian Trade Minister Piyush Goyal, however, cautioned that a deal would require sensitivity to India’s dairy sector concerns, indicating that initial focus may be on industrial sectors amid ongoing agricultural negotiations.
