Merz hedges bets by wooing India

ByRhys Hughes

January 22, 2026 , , ,
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German Chancellor Friedrich Merz’s first visit to Asia highlighted Berlin’s push to rebalance its economic and strategic partnerships as Germany’s export-driven model comes under strain.

With ties simultaneously tense with China and the United States, Merz is positioning India as a long-term hedge for Europe’s largest economy. During talks with Prime Minister Narendra Modi in Ahmedabad, the two sides signed 19 agreements spanning trade, defence, critical minerals, pharmaceuticals, and labor mobility.

The visit came amid Germany’s economic contraction, rising trade frictions with Washington, and broader geopolitical uncertainty affecting both Europe and India. Accompanied by senior executives from major German firms and Mittelstand leaders, Merz emphasised commercial ties over symbolism.

For Berlin and New Delhi alike, deeper engagement offers a partial buffer against growing trade volatility and strategic fragmentation.

German Federal Government/Guido Bergmann

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