The trade deal is slated to be signed on January 27 during the visit of European Commission President Ursula von der Leyen and European Council President Antonio Costa, both of whom will also be chief guests at this year’s Republic Day parade. 

During his talks with Modi, and at their subsequent joint press briefing, Merz spoke of instability in the world order, and said it was ever more important for India and Germany to take their ties to a new level.

He highlighted the “strategic approach” that Germany was taking in its relations with India to foster closer economic and security ties to counter the instability.

“Rough winds are blowing, and we must join forces to weather them,” Merz said. He said Germany wanted closer security cooperation with India so that it was less dependent on Russia. 

Modi underlined the importance the German Chancellor placed on relations with India since it was “his first visit not only to India, but to Asia”, and that it was taking place as the two countries completed 25 years of strategic partnership last year. 

Addressing a gathering earlier in the day, Merz said it was not a coincidence that his first visit to Asia, after taking over as Chancellor eight months ago, had been to India.

Bilateral trade in goods and services between the two nations has increased over 50 per cent in the past couple of years, and reached $51.23 billion, with Germany, India’s largest trading partner in the EU, accounting for over 25 per cent of India’s trade with the bloc.