AHMEDABAD/NEW DELHI: India and Germany on Monday unveiled measures to boost cooperation in areas of defence, trade, critical minerals and semiconductors, with Prime Minister Narendra Modi and Chancellor Friedrich Merz vowing to bolster overall bilateral ties to jointly navigate challenges arising out of geopolitical upheaval.

Following talks between Modi and Merz, the two sides inked 19 pacts, including a roadmap for defence industrial collaboration and another on expanding cooperation in the higher education sector. A separate pact was inked on engagement in the telecommunications sector.

The two leaders also pitched for early finalisation of the India-European Union (EU) free trade agreement to expand the overall trade basket. A visa-free transit for Indian passport holders for transiting through Germany was also announced to boost people-to-people ties.

The German leader, accompanied by a large business delegation,  landed in Ahmedabad early this morning on a two-day visit to India. It is his first trip to Asia as the German Chancellor.

"The growing cooperation in defence and security is a symbol of our mutual trust and shared vision. I express my heartfelt gratitude to Chancellor Merz for simplifying the processes related to defence trade," Modi said in his media statement.

"We will also work on a roadmap to enhance cooperation between our defence industries, which will open up new opportunities for co-development and co-production," he added.

In the talks, Modi and Merz reaffirmed their commitment to a free and open Indo-Pacific, respect for international law including UNCLOS (UN Convention on the Law of the Sea), and announced a new bilateral Indo-Pacific consultation mechanism.

The move comes amid China's increasing military muscle-flexing in the region.

Modi and Merz also reaffirmed their strong support for the India-Middle East-Europe Economic Corridor (IMEC), emphasising its transformational potential in reshaping and promoting global commerce, connectivity and prosperity.

In his comments, the prime minister also said that both sides are jointly advancing new projects in areas such as climate, energy, urban development, and urban mobility.

"The new mega project in green hydrogen involving companies from both countries will prove to be a game-changer for the energy of the future.
"India and Germany are working together to build secure, trusted, and resilient supply chains," he said.

Modi said the growing trade and investment ties have infused "new energy" into the India-German strategic partnership as he pointed out that the bilateral trade has now reached its highest level ever and crossed the USD 50 billion mark.

"More than 2,000 German companies have been present in India for a long time. This reflects their unwavering confidence in India and the immense opportunities that exist here," he said.

The prime minister said both sides agreed that "terrorism is a serious threat to all humanity" and that India and Germany will continue to fight it together with "full determination".

In his remarks, Chancellor Merz extensively talked about people-to-people connections between the two countries and said the number of skilled workers, including caregivers and nurses, needed from India is increasing rapidly.

An agreement on skill partnership inked following the Modi-Merz talks is expected to facilitate the mobility of more Indian healthcare professionals to Germany, which is home to around 300,000 Indian expatriates and 60,000 students.

"We are experiencing that great powers use supply chains and raw materials increasingly as instruments of power. Together we want to oppose this," Merz said.

"We reduce unilateral dependencies of our supply chains and that makes both our economies more resilient," he said.

In his remarks, Modi described the Indo-Pacific as an area of "high priority" for both countries.

The two leaders also discussed in detail a range of global and regional issues, including the conflict in Ukraine and the situation in Gaza.

"India has always advocated for the peaceful resolution of all problems and disputes, and supports all efforts being made in this direction," Modi said.

"India and Germany agree that reforming global institutions is crucial for addressing global challenges. Our joint efforts through the G4 group to reform the UN Security Council are a testament to this shared belief," he said.

On mobility of talents, Modi said special emphasis has been placed on enhancing migration, mobility and skilling.

"India's talented young workforce is making a significant contribution to Germany's economy." The prime minister said the comprehensive roadmap on higher education will give a new direction to the partnership in the education sector.

"I invite German universities to open their campuses in India," he said.