NEW DELHI: German Chancellor Friedrich Merz met Indian Prime Minister Narendra Modi on Monday to push for defense industry cooperation ahead of India’s awaited free trade agreement with the EU.

Merz’s two-day trip is his first since taking office in May and he is accompanied by German business leaders.

The visit started in Ahmedabad in Gujarat, Modi’s home state, where they held a press conference after a delegation-level meeting and a series of joint declarations, including on strengthening bilateral cooperation in the defense industry, critical minerals, semiconductors, and energy.

“The growing cooperation in defense and security is a symbol of our mutual trust and shared vision,” Modi said, as he thanked Merz for “simplifying the processes” related to defense trade.

“We will also work on a roadmap to enhance cooperation between our defense industries, which will open up new opportunities for co-development and co-production.”

The roadmap would promote long-term industry-level collaboration, including technology partnerships, co-development and co-production of defense platforms and equipment, according to Prof. Ummu Salma Bava, chairperson of the Special Centre for National Security Studies at Jawaharlal Nehru University.

“This defense cooperation marks a transformational shift in the bilateral relations that had till now focused on economic cooperation, and inaugurates a new chapter on a scaled-up defense engagement,” she told Arab News.

“PM Modi indicated that both countries are entering the ‘limitless’ phase in expanding economic cooperation in strategic sectors.”

Germany is India’s most important trading partner in Europe and one of its top partners worldwide, with bilateral trade in goods and services estimated by the Indian Ministry of External Affairs at $50 billion.

In Merz’s delegation are 25 CEOs and industry leaders, including from Thyssen Krupp Maritime Systems, Siemens, DHL Group, Infineon Technologies, Uniper, Airbus Defence and Space.

German media reported that one of the key focuses of the visit is finalizing the details of an $8 billion deal to jointly build submarines in India.

The visit comes as India and the EU — of which Germany is the largest economy — are working on a free trade agreement. It also takes place ahead of an EU-India summit in New Delhi on Jan. 27, where parts of the pact are expected to be finalized.

“The visit of the large business delegation with 25 German CEOs is to tap into the growing economic potential and also further strengthen the bilateral economic relations,” Bava said.

“The signing of the India-EU FTA will further expand trade between India and Germany. Germany is the largest economy in the EU and has a strong base in automobiles, engineering, advanced manufacturing, chemicals and defense industry.”