Gandhinagar

German Chancellor Friedrich Merz on Monday said that finalising the India–European Union Free Trade Agreement (FTA) is critical to fully realising the economic potential between India and Germany, describing India as both a “desired partner” and a “partner of choice” for Berlin.

Speaking at a joint press conference with Prime Minister Narendra Modi in Gandhinagar, Merz stressed that stronger trade frameworks are essential to deepening bilateral economic ties.

“To unlock the full potential of India-Germany economic relations, it is important to conclude the negotiations on a free trade agreement between India and the European Union,” the Chancellor said.

Highlighting Germany’s commitment to its partnership with India, Merz said the relationship carries growing strategic and economic weight, especially at a time when the global order is undergoing rapid change.

“The world order is shifting. It is increasingly shaped by great power competition and spheres of influence. We must prepare ourselves for challenging times,” he said.

Merz underlined the strategic importance of defence cooperation, noting that both countries have signed a Memorandum of Understanding to enhance collaboration in defence industry development, joint production, innovation, and the strengthening of global supply chains.

“We want to deepen cooperation between our defence industries. This has strategic significance for both sides,” he added.

The German Chancellor said India and Germany are working to take their relationship to a higher level, reflecting shared interests across economic, strategic and global domains.

“We want to elevate India-Germany relations to a new and higher level,” Merz said.

Thanking Prime Minister Modi for hosting him in Gujarat, Merz described the invitation to the Prime Minister’s home state as a gesture reflecting strong personal warmth and deep bilateral ties.

Chancellor Merz’s visit marks his first official trip to India since assuming office and coincides with the 75th anniversary of diplomatic relations and 25 years of the India-Germany Strategic Partnership.

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The two-day visit, from January 12 to 13, aims to further strengthen cooperation across trade, defence, innovation and global challenges, as both countries seek to advance a forward-looking partnership.