Chancellor Merz's India Visit: German Defence Deal on the Horizon
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New Delhi: German Chancellor Friedrich Merz is set to visit India on January 12-13, with a focus on strengthening bilateral defence ties. Ahead of the visit, German Ambassador Philipp Ackermann met Defence Secretary Rajesh Kumar Singh to discuss co-production of defence equipment, including a ₹70,000-crore deal for six stealth submarines for the Indian Navy. The meeting comes amidst speculation that India and Germany may finalize a intergovernmental agreement to enable the deal, which would be one of the biggest 'Make in India' defence production initiatives in recent years. The agreement would also be a significant step in Germany's efforts to build a stronger defence partnership with India and boost its domestic defence industry. Thyssenkrupp Marine Systems (TKMS), a German yard, is in commercial negotiations with the Indian side for an agreement on the pricing of the submarines. TKMS CEO Oliver Burkhard has stated that if the deal is sealed, it could be the beginning of a long-standing partnership with India, with bipartisan support in Germany to ramp up overall defence ties. The submarines are expected to have significant indigenous content, with a minimum of 45% indigenisation in the first submarine, increasing to 60% in the sixth. The first submarine is expected to be delivered to the navy seven years after the contract is signed, with the rest at the rate of one per year. Merz's visit comes at a crucial time, as the project is currently in the cost negotiation stage. The meeting between Ackermann and Singh is seen as a positive step towards finalizing the deal and strengthening India-Germany defence ties.
