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India and Germany on Monday signed a series of agreements to strengthen economic and security cooperation, reflecting a broader attempt by both sides to reduce dependence on China and hedge against growing uncertainty driven by US policy under President Donald Trump.
The engagement comes as India actively reorients its global partnerships amid high US tariffs, while Europe is increasingly seen by policymakers as the most viable counterweight to Washington’s economic pressure tactics.
Push for India-EU free trade deal
German Chancellor Friedrich Merz, who met Prime Minister Narendra Modi on the sidelines of a kite festival in Gujarat, said the European Union and India could sign a landmark free trade agreement as early as this month. Such a deal would significantly reshape trade ties between the two blocs.
India’s expanding engagement with the EU reflects a deeper structural shift in its external economic and strategic outlook. With trade ties with the US strained by punitive tariffs of up to 50 percent, Europe — long considered a secondary economic partner — is emerging as a more prominent, and potentially critical, alternative market and strategic collaborator.
Defence cooperation gains momentum
Beyond commerce, the world’s third- and fifth-largest economies are also seeking to enhance defence cooperation as geopolitical shifts alter the global strategic balance. Germany is rapidly building up its defence industrial base as the threat from Russia grows more acute.
At the same time, Europe appears increasingly keen to dilute India’s long-standing defence dependence on Russia — a notable recalibration of a geostrategic approach it has pursued for decades. For New Delhi, closer engagement with Europe offers diversification and strategic leverage at a time when traditional power alignments are under strain.
India’s defence sourcing driven by national interest
Amid these developments, Foreign Secretary Vikram Misri said India’s defence procurement decisions are guided entirely by national interest and not by ideology.
Responding to comments by Chancellor Merz, who said Germany wanted to deepen security cooperation with India to reduce its reliance on Russia, Misri said the German leader was pointing to a broader shift in Berlin’s defence and security policy towards India.
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View All“Our approach on defence sourcing is driven entirely by national interest. There are many factors involved, and it is certainly not ideological. Sourcing from one country is not linked to sourcing from another,” Misri said.
India is currently in discussions with Germany’s Thyssenkrupp Marine Systems for a potential deal to build six submarines in partnership with Mazagon Dock Shipbuilders.
Russia remains a key defence partner
India continues to work closely with Russia on security policy, with a significant share of its military equipment sourced from Moscow. India is also among the largest buyers of Russian oil and gas, alongside China.
Defence cooperation remains a core pillar of the India-Russia strategic partnership and is governed by the Agreement on the Programme for Military Technical Cooperation. The two sides regularly conduct military exercises and personnel exchanges.
India continues to operate several Russian-origin platforms, including T-90 main battle tanks, Sukhoi-30MKI fighter jets and MiG-29K aircraft. Over time, cooperation has expanded from a buyer-seller relationship to joint research, development and production, with key examples including the BrahMos cruise missile and the manufacture of AK-203 assault rifles in India.
Germany clears defence backlogs, submarine talks continue
Misri also pointed to a shift in Germany’s defence policy towards India, noting that approvals which once took considerable time are now being cleared faster, with much of the backlog addressed.
On the proposed submarine deal, he said technical, financial and commercial discussions were ongoing and had maintained positive momentum, though he cautioned that it was difficult to assess the precise stage of talks.
“The Defence Ministry would have a better sense of where things stand. What I can say is that discussions are proceeding positively, and we hope to see a positive outcome,” Misri said.
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