The countries signed a memorandum of understanding to that effect during Merz’s first trip to the South Asian nation, in addition to agreements on critical minerals, the health sector and an artificial intelligence innovation centre.

“India and Germany are working together to build secure, trusted and resilient supply chains. The MoUs being signed today on all these issues will give new momentum and strength to our cooperation,” said Modi at a joint news conference.

India still works closely with Russia, where much of its military equipment originates, on security policy, and it is one of the largest buyers of Russian gas and oil alongside China.

Germany is working to ensure the Indian government prevents Indian companies from circumventing sanctions on Russia and reduces its energy imports – demands India has so far rejected.

Merz also called for India and the EU to conclude negotiations on a free trade agreement, with his visit intended to provide impetus for concluding a deal by the end of January.

The world is experiencing “a renaissance of protectionism,” said Merz, and this damages Germany and India.