Prime Minister Narendra Modi on Monday said that strong economic ties between India and Germany are important not just for the two countries, but for the wider good of the world.
Speaking at a joint press conference with German Chancellor Friedrich Merz during his official visit to India, Modi said, “You can manufacture in India, take full advantage of domestic demand, and export without any restrictions. On behalf of the government, I assure you that India will further strengthen its cooperation with Germany through stable policies, mutual trust, and a long-term vision.”
He further said that Germany’s trust in India was reflected in several key decisions taken during Merz’s visit. He explained that both countries have agreed to expand their economic partnership without limits. Along with traditional areas of trade, cooperation will now grow in strategic sectors as well.
‘India continues to grow at over 8%’
Later, while addressing the Forum, the PM said that India is continuing to grow at over 8% despite global challenges. He highlighted that this progress is the result of steady and wide-ranging reforms across many sectors, including defence, space, mining and nuclear energy.
The Prime Minister added that rules are being simplified and doing business in India is becoming easier. He further added that these steps have made India a global symbol of “growth and optimism”.
‘India-EU FTA to materialise soon’
The PM said that the India-European Union Free Trade Agreement is expected to be finalised soon, which will boost trade, investment and long-term partnerships. “The India-EU Free Trade Agreement is also going to materialise soon. This will open a new chapter for our trade, investment, and partnerships. The path is clear for you here,” PM Modi said.
Inviting German companies to invest, Modi said Germany’s expertise and innovation can work well with India’s large market and fast pace. He encouraged German firms to manufacture in India, meet local demand, and export freely. He assured them that the Indian government remains committed to deepening cooperation with Germany through stable policies, trust, and a long-term approach.
India moving towards becoming world leader in clean and green energy, AI in focus
Speaking at the India-Germany CEOs Forum, Prime Minister Narendra Modi said that India is on its way to becoming a global leader in clean energy such as green hydrogen, solar power, wind energy and biofuels. This, he added, creates major manufacturing opportunities for German companies in areas like solar cells, electrolysers, batteries and wind turbines.
The PM said that by working together, India and Germany can offer solutions to global challenges, including electric mobility, food security and healthcare. He also spoke about India’s inclusive approach to artificial intelligence, adding that linking it with Germany’s strong AI ecosystem could help build a digital future that keeps people at the centre.
He pointed out that India’s large and skilled workforce can help drive innovation and improve productivity in German industries. Modi noted that movement of skilled workers, especially in high-tech fields, has grown quickly in recent years, and encouraged German companies to make full use of Indian talent and deepen cooperation between industries.
Joint declaration of intent in defence
PM Modi also highlighted that India and Germany are moving closer in defence ties, with a joint declaration of intent being signed to support companies in working together on defence innovation and manufacturing. Modi added that the space sector will also see new areas of collaboration.
The Prime Minister said both sides have agreed to turn trusted partnerships into strong technology partnerships. As the world’s two largest democratic economies, India and Germany will work more closely on critical and emerging technologies.
He said both countries are partners in the semiconductor sector and have strong potential to cooperate in fields such as power electronics, biotechnology, financial technology, pharmaceuticals, quantum computing and cybersecurity.
‘Partnership between India, Germany a strategic aspect,’ says Merz
Speaking to the Forum, German Chancellor Friedrich Merz said his decision to visit India as his first Asian destination was deliberate and timely.
He said the world is going through major changes, with rapid technological shifts and growing geopolitical tensions affecting how economies function and compete.
In this situation, Merz said the partnership between India and Germany is a strong strategic advantage, not just in economic terms but also politically and on the global stage.