German Chancellor Friedrich Merz on Monday said Germany is keen to explore further business opportunities in India during a meeting with Prime Minister Narendra Modi at Ahmedabad’s Sabarmati Ashram. Merz also signed key memoranda of understanding (MoUs) in Modi’s presence, aimed at strengthening bilateral trade between India and Germany. 

“Under my government, Germany is open for business and open for business cooperation. At the same time, we are strongly interested in further opportunities for German businesses in India...India and Germany are innovation driven economies...There are significant opportunities for cooperation across industries and technologies,” he said.  

Two weeks before the planned EU-India Summit, Merz is on a two-day visit to India. The visit aimed at boosting the economic ties between two countries and further pushing the ongoing talks of India-EU free trade agreement (FTA).  Notably, the visit is also unique as Merz is accompanied by the CEOs of top 25 German companies.  

Underscoring the importance of economic partnership between India and Germany, Prime Minister Modi said that the strong linkages between two countries have directly benefited trade, which has now crossed the $50-billion mark. 

"Our ongoing manufacturing collaboration between our MSMEs and Germany's Mittelstand, the rapidly growing cooperation in IT and services, joint ventures and research collaborations in the automotive, energy, machinery, and chemical sectors are leading to the emergence of new technologies. These strong linkages have directly benefited our trade, which has now crossed the $50-billion mark," Modi said.

25 years of strategic cooperation 

Furthermore, Modi said ties between India and Germany have grown much stronger, with 25 years of strategic cooperation and 75 years of diplomatic relations marking the partnership.  

"These milestones are not merely achievements of time. They are symbols of our shared ambitions, mutual trust, and ever-strengthening cooperation. Close cooperation between economies like those of India and Germany is crucial for all of humanity. Growing trade and investment ties have given new energy to our strategic partnership," he said. 

India- Germany economic ties 

According to the reports, more than 2,000 German companies are doing business in India, and over 700 Indian companies have invested in Germany. Trade between the two countries is close to $50 billion, making Germany India’s most important partner in the European Union. 

Germany is also India’s ninth-largest source of foreign direct investment. Between April 2000 and March 2025, German companies invested a total of $15.11 billion in India. In the financial year 2024–25 alone, Germany invested $469 million across sectors such as transport, electrical equipment, metals, services, chemicals, and automobiles.