Modi-Merz Summit Ignites India-Germany Partnership with $50 Billion Trade Milestone
Prime Minister Narendra Modi and German Chancellor Friedrich Merz turned Ahmedabad into a hub of diplomacy on January 12, 2026, as they unveiled a powerhouse India Germany Partnership at the India-Germany CEOs Forum. With bilateral trade smashing the $50 billion mark, this meeting isn't just ceremonial—it's a bold response to global uncertainties, blending economic muscle with cultural bonds. Happening amid 75 years of diplomatic ties and 25 years of strategic partnership, it spotlights why strengthening India Germany Partnership matters now more than ever.
Cultural Kickoff at Sabarmati Ashram and Kite Festival
The day kicked off with a poignant visit to Sabarmati Ashram. Modi and Merz paid floral tributes to Mahatma Gandhi, with Merz penning in the guest book: Gandhi's non-violence and dignity "are more relevant now than ever." This nod to shared values set a warm tone.
Next, they dove into Gujarat's vibrancy at the International Kite Festival 2026 on Sabarmati Riverfront. Flying kites amid folk dances and cheers of "Har Har Modi," the leaders symbolized soaring friendship. Modi even explained kite-making traditions, blending heritage with high-stakes talks. These moments humanize the Modi Merz Meeting, showing diplomacy's joyful side.
Economic Powerhouse: Trade Hits $50B, New MoUs Signed
At the Mahatma Mandir Convention Centre in Gandhinagar, the Ahmedabad CEOs Forum stole the show. PM Modi hailed over 2,000 German firms in India as proof of "unwavering confidence." Bilateral trade crossed $50 billion—a record—fueled by reforms in defence, space, and ease of doing business.
Key announcements:
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Joint Declaration of Intent for defence co-innovation and production.
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Deeper tech ties in semiconductors, biotech, quantum, and cybersecurity.
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Hints at an imminent India EU FTA, with Modi inviting German "precision and innovation" to pair with India's "scale and speed."
Merz called the India Germany Partnership a "strategic asset" amid tech shifts and geopolitics. He pushed for the India-EU FTA and praised India as Germany's "partner of choice." Modi thanked Germany for visa-free transit for Indians, easing people-to-people links.
Why This Matters Now: A Timely Global Anchor
In a world rocked by uncertainties, this Modi Merz Meeting positions India and Germany as innovation engines. With India's 8% growth and Germany's engineering prowess, the duo eyes limitless economic synergy. Experts like former diplomat Sandeep Chakravorty note: "This elevates ties from trade to tech-trust, countering supply chain risks."
Actionable takeaways for businesses:
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Explore defence and space co-production—stable policies await.
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Leverage domestic demand; export freely from India.
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Watch for India EU FTA breakthroughs by mid-2026.
Looking Ahead: Boundless Horizons
As Merz wraps his first Asian trip as Chancellor, the momentum is palpable. Swami Vivekananda's philosophical bridge, as Modi invoked, now carries economic freight. This India Germany Partnership isn't just bilateral—it's a global good, promising jobs, tech leaps, and stability. Stay tuned for MoU details and live updates from Gujarat.
