India and Germany are stepping up efforts to strengthen cooperation between their defence industries and boost security ties, reflecting a growing strategic partnership between the two countries, officials said following talks on 12 January 2026.

According to Channel NewsAsia, Indian Prime Minister Narendra Modi and German Chancellor Friedrich Merz discussed plans to expand defence collaboration and pursue joint development and production of military equipment as part of broader bilateral cooperation.

At their meeting in Gujarat’s Ahmedabad, Mr Modi and Mr Merz signed agreements aimed at enhancing defence industrial cooperation, semiconductor production, and critical mineral supply chains, underscoring the broadening scope of India-Germany ties beyond trade into strategic sectors. According to NDTV Profit, the leaders signed a Declaration of Intent on defence industrial cooperation and agreements on critical minerals and semiconductors designed to support manufacturing and security linkages. 

Mr Modi said the expanding partnership reflects “mutual trust and shared vision,” and underlined the importance of building a roadmap to increase collaboration in defence production and technology sharing. Channel NewsAsia reported that both sides agreed to work on co-development and co-production initiatives, which could open up new opportunities for joint manufacture of defence equipment. 

Chancellor Merz highlighted the importance of closer cooperation in security and defence to address shared challenges posed by global geopolitical shifts. He said Berlin is committed to an international order that promotes freedom and security and noted that stronger defence links with India were part of that goal. Channel NewsAsia noted that Merz said deeper defence cooperation could help India reduce reliance on traditional suppliers, such as Russia, and strengthen strategic ties with European partners.

The discussions also touched on multinational military exercises and interoperability training, with officials signalling Germany’s interest in participating in joint drills and exchanging insights on regional security dynamics. Firstpost reported earlier that India and Germany had reaffirmed defence cooperation through a High Defence Committee meeting in November 2025, where they reviewed possibilities for co-production of advanced defence systems and expanding military collaboration. 

Another area of potential cooperation includes the Thyssenkrupp Marine Systems submarine project, where Germany is expected to partner with Indian shipbuilders in future defence production. Reuters noted that during the visit, discussions included possibilities for joint infrastructure and industrial cooperation in strategic sectors such as defence, trade and semiconductors.

The push for closer defence ties comes amid a broader strengthening of economic relations, with bilateral trade between India and Germany having surpassed USD 50 billion, illustrating how economic and security cooperation are increasingly linked. The Economic Times reported that German Chancellor Merz underscored deeper security cooperation as a complement to robust trade ties between the two democracies.

Observers say closer defence industry cooperation could position India and Germany as important strategic partners in an evolving geopolitical landscape, especially amid shifting global alliances and security considerations in the Indo-Pacific and beyond.