Germany filling the gap
Germany takes advantage of the India-US rift to strengthen links with India. New Delhi also builds closer ties with Russia and China.
BERLIN/NEW DELHI (own report) – Germany is seeking to intensify relations with India and can take advantage of the current policy conflict between India and the United States. Last week, German Foreign Minister Johann Wadephul wrapped up his first visit to India since taking office last week. During talks in New Delhi plans were agreed to double the volume of trade between the two economies and to expand Germany’s recruitment of skilled workers from India. Berlin is also keen to fast-track negotiations on a free trade agreement between the EU and India. Wadephul’s visit took place at a time when relations between India and the US are in crisis due to Washington’s decision to slap high tariffs on imports from India. The Trump administration accuses New Delhi of supporting Moscow’s war in Ukraine by purchasing Russian oil. This is the reason for a doubling of the tariffs already scheduled. Refusing to give in to US pressure, the Modi government is now keen to improve relations with China. And the German government is also keen to fill the gap created by the dispute between India and the US. Germany industry is looking for alternative options as business with the US becomes less profitable.
Wadephul in India
German Foreign Minister Johann Wadephul made his first visit to India since taking office last week. The trip began in Bengaluru, known as “India’s Silicon Valley”, where he visited the Indian branches of major German companies such as Mercedes Benz and SAP.[1] He also met with representatives of Indian tech institutions such as the Indian Space Research Organisation (ISRO) and the Indian Institute of Science (IISc), and talked with Indian students learning German at the local Goethe Institute. Travelling on to New Delhi, Wadephul met his Indian counterpart Subrahmanyam Jaishankar and the Commerce and Industry Minister, Piyush Goyal. He also spoke on the telephone directly with Prime Minister Narendra Modi.[2] Both sides signalled their intention to finalise ongoing negotiations on a free trade agreement between the EU and India. These talks began back in 2007 and have been marked by long interruptions and delays.[3] The EU is pushing for a reduction in import duties on cars and access to India’s agricultural and dairy markets, while New Delhi wants better protection for Indian farmers and the easing of strict commitments on climate and labour standards. The high tariffs imposed by Trump on imports from the EU and even higher tariffs on imports from India have given both sides an incentive to overcome any obstacles. They are both looking to expand mutual trade as quickly as possible in order to offset the potentially heavy loss of business with the US.
25 years of strategic partnership
Before his departure Wadephul had emphasised India’s importance for Germany. He declared that the world’s most populated nation was “a strategic partner for Germany throughout the Indo-Pacific region”. Indeed, he claimed it played “a decisive role in the system of global partnerships”. Both countries, which are currently celebrating the 25th anniversary of their strategic partnership,[4] agreed on the objective of doubling their mutual trade volume, which currently stands at around 31 billion euros. This is a modest figure, amounting to less than Germany’s trade with Ireland or Denmark. Another key topic is the recruitment of skilled workers from India. Wadephul said that Indian professionals were “an important pillar” of the German economy, no less. At a time when other Western countries are restricting the entry of Indian citizens, Germany is pursuing a more liberal policy as businesses search for skilled workers. Since 2015, the number of Indians in Germany has more than tripled from 86,000 to 280,000 (german-foreign-policy.com reported [5]). The reliance on foreign and especially Indian workers is mainly due to Germany’s ageing and shrinking population. The labour shortages can only be met by an annual net immigration of 400,000 workers by 2035. Berlin and New Delhi recently agreed on free visas to promote student exchanges and educational relations between the two sides.[6]
Defence industry relations
In addition, the two countries are boosting cooperation in the field of armaments. At the beginning of this year, Germany’s Rheinmetall and India’s Reliance announced plans for the joint production of precision-guided Vulcano 155 mm ammunition and for manufacturing explosives and propellants needed in medium- and large-calibre weapons (german-foreign-policy.com reported [7]). Defence Minister Boris Pistorius visited India last year with ambitious plans. An agreement has been signed between Thyssenkrupp Marine Systems (TKMS) and Indian defence companies on the joint development and future construction of six modern diesel-electric stealth submarines.
Exemplary punishment
Wadephul’s India visit comes at a time when relations between New Delhi and Washington have been rapidly deteriorating due to the exorbitant tariffs imposed on India by the Trump administration. In addition to the general 25 per cent tariffs on Indian imports, India has been hit with an additional punitive tariff of 25 per cent. This is explicitly intended as punishment for buying Russian oil. It brings the total tariff to 50 per cent. Stephen Miller, deputy chief of staff at the White House and one of Trump’s key advisers, said it was “not acceptable for India to continue financing this war by purchasing oil from Russia.”[8] Others, such as US Senator Lindsey Graham, have even threatened to “crush” the Indian economy because of New Delhi’s continued cooperation with Moscow.[9] According to the Indian government’s chief economic adviser, V. Anantha Nageswaran, US tariffs could cost almost 55 per cent of India’s exports to the US. That comes to a total value of 87 billion US dollars, shaving half a percent of India’s gross domestic product this year.[10] What has added to the strained relations is the fact that, while Washington is punishing India with huge tariffs, China, the largest importer of Russian energy, is to be untouched by such duties. Many in India believe that the real reason for the Trump’s punitive action lies in India’s refusal to credit Trump with brokering a peace deal with Pakistan in the four-day war between India and Pakistan in May this year. Pakistani leaders, by contrast, have even nominated Trump for the Nobel Peace Prize.[11]
New Delhi remains steadfast
Despite all the threats from the US, India has so far refused to cut its oil imports from Russia, as Finance Minister Nirmala Sitharaman recently confirmed: “We will have to take a call on which [source of supply] suits up the best. So we will undoubtedly be buying it.”[12] To confirm this course, New Delhi sent a high-level delegation to Russia immediately after Trump announced the punitive tariffs, including National Security Advisor Ajit Doval.[13] Shortly afterwards, Foreign Minister Jaishankar also arrived in Moscow.[14] Both visits appear to have given a boost to defence and trade relations between the two countries. They have also laid the groundwork for a visit by Putin to India, which is to take place later this year.
Modi in Tianjin
The most notable development, however, is the unexpected rapprochement between India and China, two countries which have long had a tense relationship due to border disputes. In the context of their conflicts with the US, Beijing has described Trump as a “bully” and declared that China “stands firmly with India”.[15] In August, Foreign Minister Wang Yi visited India at the invitation of National Security Advisor Ajit Doval.[16] Although no formal agreement was signed during his stay, both sides discussed ways of strengthening trade and investment. The politicians announced a resumption of direct flights and the reintroduction of general visas for travel between the two countries. The icing on the cake, however, was Modi’s participation in the recent Shanghai Cooperation Organisation (SCO) summit held in the northern Chinese port city of Tianjin. A bilateral meeting with Modi’s Chinese counterpart Xi Jinping was held on the side-lines of the gathering.
‘Trust and reliability’
Wadephul is now hoping to use the recent discord between the US and India to present Germany as a more reliable partner. The German Foreign Minister described relations between the two countries as “based on mutual trust and reliability”.[17] Doing more business with India also enables Germany and the EU to compensate for some of the damage done by the expected tariff-related slump in exports to the US. Since the beginning of Trump’s second term, more and more voices in the EU have been calling on Brussels to “build alternative geopolitical relationships”, highlighting India as a case in point.[18] It was in this context that EU Commission President Ursula von der Leyen and numerous other EU commissioners travelled to Delhi in February this year. Both sides agreed to conclude the planned “free-trade pact” before the end of this year.[19] Those talks also explored the possibility of signing a “security and defence partnership” similar to those the EU has already concluded with Japan and South Korea.[20] Until now, the EU’s stance towards India has been characterised in part by an intention to position India against China, driving a wedge between New Delhi and Moscow. In 2024, for example, the German government adopted a paper entitled “Focus on India” declaring that Berlin wanted “India to rely more strongly on German arms companies ... so that it can free itself further from its arms-related orientation towards Russia.”[21] During his most recent visit, however, Wadephul struck a more cautious note. He refrained from damning India’s cooperation with Russia and China.[22] For Berlin, strengthening relations between the two countries is currently the priority.
[1] Foreign Minister Wadephul kicks off India visit in Bengaluru. dw.com 02.09.2025.
[2] Till Fähnders: Deutschland will von Trumps Politik profitieren. faz.net 03.09.2025.
[3] Mark Hallam: India asks Germany for help in search for EU free trade deal. dw.com 03.09.2025.
[4] Statement by Foreign Minister Wadephul prior to his departure for India. auswaertiges-amt.de 01.09.2025.
[5] See also: Arbeitskräfteimport aus Indien.
[6] Visit of H.E. Mr. Johann Wadephul, Foreign Minister of Federal Republic of Germany to India (September 01-03, 2025). mea.gov.in 03.09.2025.
[7] See also: Joining the arms race in India.
[8] Trump aide accuses India of financing Russia’s war in Ukraine. aljazeera.com 04.08.2025.
[9] ‘We’re going to crush your economy’: US Senator Lindsey Graham warns India, China, Brazil over ‘cheap’ Russian oil; threatens to ‘tariff the hell out’. timesofindia.indiatimes.com 22.07.2025.
[10] India’s chief economic adviser says Trump’s tariffs could shave 0.5% off GDP, Bloomberg News reports. reuters.com 08.09.2025.
[11] Sanstuti Nath: “Trump Is Not Happy With India Because…”: What Ex-Diplomat Said. ndtv.com 14.08.2025.
[12] Hritam Mukherjee, Nidhi Verma: India will continue to buy Russian oil despite US tariffs, finance minister says. reuters.com 05.09.2025.
[13] NSA Doval travels to Russia for talks on crucial issues. taxtmi.com 06.08.2025.
[14] India, Russia agree to boost trade ties after foreign ministers meet in Moscow. reuters.com 21.08.2025.
[15] Shweta Sharma: China says it stands with India against ‘bully’ Trump’s trade tariffs. independent.co.uk 22.08.2025.
[16] Satyajeet Malik: Ist das schon Normalisierung? jungewelt.de 21.08.2025.
[17] Statement by Foreign Minister Wadephul prior to his departure for India. auswaertiges-amt.de 01.09.2025.
[18] James Crabtree: In the wake of Trump: The EU’s chance to redefine its India relationship. ecfr.eu 25.02.2025.
[19] EU, India agree to finalize free-trade pact this year, von der Leyen says. politico.eu 28.02.2025.
[20] Speech by President von der Leyen: ‘The Consequential Partnership: Reimagining and realigning EU and India ties for today’s world’. ec.europa.eu 28.02.2025.
[21] Auswärtiges Amt: Focus on India. Berlin, October 2024.
[22] Till Fähnders: Deutschland will von Trumps Politik profitieren. faz.net 03.09.2025.
