India-Germany: An economic relationship whose time has come as the world changes and challenges grow

The visit reinforced strategic alignment across political, economic and technological domains and precedes the anticipated European Union-India Summit, expected to push forward negotiations on an India-EU trade agreement.

Amid increasing geopolitical fragmentation, renewed emphasis on tech sovereignty and techno-nationalism, with the strategic control and weaponization of technologies a new reality, India and Germany share comprehensive relations dating back to a pact on ‘Cooperation in Scientific Research and Technological Development’ that is over half a century old.

India and Germany share a future-oriented partnership in science and technology, rooted in trust, shared democratic values and a strong commitment to innovation. This cooperation spans several priority areas, including mega science, space research, artificial intelligence (AI), digital transformation, green hydrogen, renewable energy, biotechnology, advanced manufacturing and sustainable mobility.

This collaboration is supported by robust institutional mechanisms, joint research programmes and academic and research exchanges.

By aiming to link research institutions, universities, startups and industry, the Indo-German partnership can strengthen innovation ecosystems and create skilled employment. By combining Germany’s tech strengths with India’s scale, talent and digital capabilities, we are well placed to drive economic growth and address common challenges such as climate change and the related energy transition, apart from those posed by rare-earth scarcity and gaps in health and security.

Together, we could deliver solutions with global impact that advance the cause of sustainable and inclusive development. The partnership extends to triangular technology cooperation projects in countries such as Cameroon, Malawi and Peru, focusing on agriculture, sustainable livelihoods and geospatial planning.

Merz’s visit strengthened the Innovation and Technology Partnership Roadmap. Several agreements and MoUs were adopted in emerging and critical technology domains that are vital for economic competitiveness and strategic autonomy, including semiconductors, critical minerals, telecom, AI and digital technologies.

Both countries aim to diversify supply chains and build resilience against potential disruptions, even as they plan to harness AI for sustainable development by adopting an innovation-led, inclusive and human-centric approach to AI governance. There is ample scope for joint efforts in shaping global AI norms, standards and applications, given Germany’s participation in the Global Partnership on Artificial Intelligence and India’s hosting of the AI Impact Summit this February.

A call for enhanced space industry level engagements could help accelerate innovation and the commercialization of advanced space technologies.

As for the green agenda, initiatives like the Green and Sustainable Development Partnership, Green Hydrogen Roadmap and the Indo-Germany Energy Forum are expected to facilitate collaboration on renewables, climate mitigation and a just energy transition. Deeper engagement is also possible through the Global Biofuel Alliance, launched during India’s G20 Presidency to ensure that sustainability goals are closely linked with energy security and climate commitments.

Other joint strides were taken on an R&D programme for bioeconomic progress. Others include the Semiconductor Ecosystem partnership. There was further good news in a five-year extension of the Indo-German Science & Technology Centre, an institutional mechanism that advances collaboration in basic and applied research through a unique 2+2 academia-industry model that fosters innovation on a public-private partnership basis.

At 75 years, the India-Germany relations have evolved into a mature, institutionalized and future-oriented partnership.

Given how the world is shaping up, all of this is essential.By aligning science, technology and innovation cooperation with sustainability imperatives, both countries are set to deepen bilateral ties and collaboratively shape responses to global challenges.

Chancellor Merz’s visit did not just reflect continuity and a renewed momentum, it underlined a shared vision. India’s growing STEM diaspora in Germany is acting as another bridge between the two countries, with knowledge diffusion between the two a key aspect of it. With collaborative research, talent mobility and tech partnerships on firm ground, the two have much to offer each other and the rest of the world.

The authors are, respectively, science consultant and consultant, Research and Information System for Developing Countries.