Why Germany’s Chancellor Came to India: 5 Takeaways

German Chancellor Friedrich Merz’s recent visit to India in mid-January 2026 – his first official trip to the country – underscores the growing depth of India-Germany relations. From boosting trade talks to symbolic kite-flying, the two-day tour highlighted how New Delhi and Berlin are aligning on economic and strategic fronts. Here are five key takeaways from Merz’s India visit:

1. Trade Talks – Fast-Tracking the India-EU FTA

One top agenda item was accelerating the long-pending India-EU Free Trade Agreement (FTA). Merz urged India and the EU to conclude their FTA negotiations, aiming for a deal by the end of January[1]. The trade pact has been under discussion for years, and talks relaunched in 2022 have gained momentum[2]. Germany – India’s largest trading partner in Europe – sees the FTA as a “huge opportunity” to spur bilateral business and investment[3].

Trade liberalization is key: negotiators are tackling thorny issues like Europe’s demand for lower tariffs on cars, wine and whiskey, and India’s reluctance to open up sectors such as dairy and agriculture[4]. Overcoming these barriers would unlock a deal that could significantly expand the current ~$50 billion India-Germany trade volume[5] and boost exports on both sides. Merz’s visit, just weeks before an India-EU summit, was meant to provide political impetus to finally seal the FTA[3][6].

2. Strategic Alignment in a Shifting World

Merz’s trip also showcased a broader strategic alignment as both countries adapt to changing geopolitics. With US-China trade tensions disrupting global supply chains, India and Germany are looking to diversify and “friend-shore” production. In Ahmedabad, Modi noted that India and Germany are working together to build “secure, trusted and resilient supply chains,” backed by new agreements on critical minerals and technology[7]. The German Chancellor has warned of a “renaissance of protectionism” worldwide – a trend he says harms both the German and Indian economies[8].

Strengthening ties with India is one way Germany and the EU hope to balance economic dependencies. Europe’s relations with its traditional partners are in flux: ties with the U.S. have become less predictable, and China is now viewed as a “systemic rival” by the EU[9]. In this context, closer India-Germany cooperation can help both sides reduce over-reliance on China and build more resilient supply lines. Merz’s emphasis on open markets and diversified supply chains highlights a shared interest in guarding against protectionism and ensuring mutual growth in a volatile global economy[8][10].

3. Republic Day Buzz – A Tilt Toward Europe

The timing of Merz’s visit – just ahead of India’s Republic Day celebrations – fueled speculation about Europe’s role in India’s high-profile annual event. Mid-January is when New Delhi reveals its Republic Day Chief Guest, and Merz’s presence sparked talk that he or another EU leader might get the honor. In fact, India extended an unprecedented invitation to the European Union’s top leadership. For Republic Day 2026, European Commission President Ursula von der Leyen and European Council President Antonio Costa were invited as chief guests at the January 26 parade[11].

 This diplomatic first – inviting EU leaders jointly – carried major symbolism. It highlighted India’s visible tilt toward Europe and the blossoming India-Europe strategic partnership[12]. By honoring Europe’s chiefs on Republic Day, India signaled a commitment to deeper ties with the EU in trade, security and global governance. The high-profile EU presence at the parade, followed by an India-EU summit, underlined that New Delhi now sees Brussels as a key strategic partner. In short, Merz’s visit was part of a larger European outreach, showcasing the increasing alignment between India and Europe on the world stage[12].

4. Technology & Climate Cooperation

Another focus of the visit was boosting collaboration in cutting-edge technology and climate action. Chancellor Merz traveled to Bengaluru – India’s tech hub – to engage with innovators. During the visit, India and Germany announced new partnerships in areas like artificial intelligence and clean tech. Notably, the two sides agreed to set up an AI innovation centre to spur joint research[13]. They also discussed cooperation in securing semiconductor supply chains, building on the EU-India Trade and Technology Council initiatives. On the climate front, the leaders reinforced their Green and Sustainable Development Partnership, which coordinates work on clean energy and sustainable infrastructure[14].

Green hydrogen is a flagship area: Germany is backing India’s plans to become a green hydrogen hub, and the countries are collaborating on technologies to produce and use this clean fuel[14]. In fact, as Merz visited, German energy firm Uniper inked a deal to import up to 500,000 tons of green ammonia (a hydrogen-based fuel) per year from India[15]. They are also expanding cooperation in solar and wind renewables and electric mobility. From launching an AI hub to financing climate solutions, the visit saw India and Germany deepen their innovation alliance – marrying German technical expertise and capital with India’s growing tech and clean energy markets.

5. Symbolic Moments and Soft Power

Prime Minister Modi and Chancellor Merz wave to crowds at the International Kite Festival in Ahmedabad, Gujarat (January 2026). One of the most memorable moments of Merz’s India trip came not in a conference room, but under the open sky. Modi and Merz flew kites together on the banks of the Sabarmati in Ahmedabad, as they inaugurated Gujarat’s famous International Kite Festival during the Uttarayan festivities[16]. The German leader gamely joined the local tradition – even trying his hand at kite-flying alongside India’s Prime Minister[17]. This joyful scene of the two leaders bonding amid colorful kites and cheering crowds showcased the human side of diplomacy.

It was a deft display of soft power and cultural camaraderie, sending a message that India-Germany ties are not just about contracts and strategic deals, but also about friendship and mutual respect. Such symbolic moments – a foreign dignitary celebrating an Indian festival – go a long way in building public goodwill. Merz’s willingness to participate in Indian customs reflected warmth in bilateral ties and underscored that the Indo-German partnership is grounded in people-to-people connection as much as in policy. The kite-flying episode capped the visit on a high note, quite literally, and became an enduring image of the warmth in India-Germany relations.

Sources: The takeaways above are based on reports from Reuters, The Print, Hindustan Times, Indian Express, and other reputable outlets that covered Chancellor Merz’s visit and its context[1][9][12][3][4][16]. These provide factual details on the agreements signed, statements made, and significance of the visit’s timing and symbolism.

This visit also strengthens broader Germany–India relations, reinforces India–EU FTA momentum, deepens India–Europe relations, expands cooperation in green hydrogen in India, and opens new avenues for AI cooperation between the two economies.

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[1] [6] [7] [8] [13] [15] Merz: Germany wants closer security cooperation with India to reduce Russia reliance | Reuters

https://www.reuters.com/world/india/merz-germany-wants-closer-security-cooperation-with-india-reduce-russia-reliance-2026-01-12/

[2] [4] India, EU push to close gaps in trade talks as year-end deadline looms | Reuters

https://www.reuters.com/world/india/india-eu-push-close-gaps-trade-talks-year-end-deadline-looms-2025-09-09/

[3] [5] Merz’s India visit signals deepening ties, business and migration on agenda: German envoy

https://indianexpress.com/article/india/german-chancellor-merz-arrives-tomorrow-first-bilateral-outside-nato-eu-space-10466742/

[9] [10] [11] Indian diplomacy set for European January with visits by German Chancellor Merz, EU leaders

https://theprint.in/diplomacy/indian-diplomacy-set-for-european-january-with-visits-by-german-chancellor-merz-eu-leaders/2820101/

[12] [14] Reinforcing old ties to face new challenges | Hindustan Times

https://www.hindustantimes.com/opinion/reinforcing-old-ties-to-face-new-challenges-101768148330775.html

[16] [17] Gandhi’s teachings are needed more than ever: German Chancellor Friedrich Merz at Sabarmati Ashram

https://www.newindianexpress.com/nation/2026/Jan/12/gandhis-teachings-are-needed-more-than-ever-german-chancellor-friedrich-merz-at-sabarmati-ashram