India–Germany Dual-Use Technology Cooperation 2025: Expanding Strategic and Defence Horizons

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Background

India and Germany are celebrating their strategic partnership, which has been over 25 years long, and recently started cooperating in defence and dual use technologies more than before. The world is getting more and more uncertain—due to conflicts, climate issues, and technological disruptions—the two countries want to increase their partnership through practical cooperation in high-tech areas supporting civilian as well as military purposes.

Both the countries have been trading, sustainability, and research kept their relationship strong over the years. Nevertheless, in recent time security and defence issues have been the main areas of their strategic interaction. India’s External Affairs Minister visit to Germany in May 2025 was a pledge, saying that the Indo-German partnership should be able to change along with the world, and through technology, maritime security and defence production, explore new ways of cooperation.

At the same time, during the seventh Indo-Pacific Regional Dialogue (IPRD) 2025 in New Delhi, senior officials and defence experts of both countries highlighted the importance of maritime cooperation and regional capacity-building. India’s naval exercises with Germany and other Indo-Pacific partners show India’s changing position as a net security provider in the area.

The partnership is also backed by the India–Germany High Defence Committee (HDC) meeting, which took place in Berlin in February 2024. This platform has been dedicated to the defence industry’s expansion and joint research in high-tech and dual-use areas along with technological ventures.

Cooperation between Indo-German defence has been established through these interactions and considered them as a whole, and it is a joint and futuristic approach based on common democratic values, the building of trust between the two countries, and the use of innovations in the field of security.

Functioning 

The cooperation India–Germany defense and dual-use technology partnership is functioning through multi-level engagements—dialogue, collaboration, and exercises.

The government at the policy level is trying to use defense cooperation as a framework of strategic partnerships. Germany’s Focus on India policy document points out India as a significant security partner in the Indo-Pacific. It indicates two parallel approaches: the first one is through joint naval exercises and training programs, and the second one by pursuing industrial-level cooperation for technology co-development and co-production.

The industrial and technological aspect of the partnership is to focus on collaborating in advanced technology areas such as AI, advanced propulsion, and defense manufacturing. Project 75 (India) aims at next-generation submarines with Air Independent Propulsion (AIP) systems, where Germany’s ThyssenKrupp Marine Systems (TKMS) collaborates with Mazagon Dock Shipbuilders Limited (MDL). This project shows the dual-use technology model, where defense innovations have wider applications in the area of propulsion, materials, and energy efficiency.

In addition, the HDC meeting held in Berlin in 2024 put the linkage of Indian and German defence industries for the joint development and innovation ecosystems to be the top most priority. Both nations accepted the very same government-to-government framework for the closer research, development, and manufacturing cooperation as the one used in the past for the defence procurement.

On the operational aspect, the cooperation has already reached out to the sea. Germany has made its presence felt in the Indian Ocean region militarily through joint training, port calls, and even its expected participation in the Milan exercise in India in 2026. Such operational ties will not only help the two nations understand and be prepared for each other but also develop a collaborative approach towards dealing with the regional issues like freedom of navigation and maritime stability.

Performance

Indo-German defence cooperation performance in the last two to three years portrayed moderate but steady progress through institutional engagement and industrial collaboration.

High-level meetings such as the German Defence Minister’s visit to India and reciprocal delegations have helped sustain the dialogue framework. Regular meetings of HDC have ensured that the discussions at the policy level become projects that can be implemented.

Germany’s increased involvement in India’s naval drills, in the face of its Indo-Pacific deployments in 2024, is a sign of operational commitment to the partnership. These activities have already changed the scenario of defence cooperation, and they will also help develop the region and affirm Germany’s willingness to take up a bigger role in providing security in the Indo-Pacific.

On the industrial side, the Project 75 (India) submarine program is the most obvious sign of progress and maturity. The Indian Navy’s assessment of TKMS’s AIP technology and the continuing negotiation are aspects of the project that promise an increase in the local defence industry’s capacity. Moreover, the licensing for defence exports to India that Germany is working on has established a mutually beneficial environment for collaboration in arms and technology.

The performance of the alliance in the technical domains next to defence—like AI, semiconductors, and renewable energy—points to the dual-use aspect. These areas provide a boost to both national security and economic stability which goes hand in hand with the global trends towards environmentally friendly, technology-based growth.

Impact 

India–Germany cooperation in dual-use technologies has an impact on multiple levels—strategic, industrial, and geopolitical.

The partnership strategically positions India as a regional security provider and at the same time allows Germany to increase its presence and influence in the Indo-Pacific. It is a significant step in the direction of the enduring international rule of law, and also of the protection of the sea routes that are of utmost importance to global trade.

On the industrial front, cooperation in defence production, particularly via co-development projects, results in rapid technology transfer and innovation. It not only complements the Indian government’s “Make in India” and “Atmanirbhar Bharat” programs but also nurtures local production and lessens reliance on single-source suppliers. Overall, Germany’s defense market is getting opened to promising markets and getting connected to a burgeoning economy through industrial linkages.

The partnership has a remarkable economic impact as it not only enhances the flow of innovations but also improves the quality of labor in the participating countries and raises the level of trade between them in the areas of high-value goods. Moreover, combining digital technologies and AI in military systems contributes to creating innovation ecosystems that are advantageous to both the civilian sector and research institutions.

The partnership has a strong geopolitical impact as it counteracts the fragmentation of the world which is becoming more and more pronounced. Germany’s involvement in the Indo-Pacific is a reflection of its desire to keep the sea routes safe, and at the same time, India’s involvement with the European democracies helps it to be more independent in its strategic thinking. The two countries are already laying down a very strong partnership that is made of economic realism and shared security objectives.

Emerging Issues

Even though the partnership between India and Germany in defence and dual-use technology has a bright future, there are still some challenges and emerging issues to deal with:

1. Regulatory and Bureaucratic Hurdles: Complicated export control systems and different regulatory frameworks may lead to delays in the project implementation. So, this simplification is the main need.

2. Technology Transfer Concerns: The weighing of the high-end tech access of the users against the protection of the intellectual property rights would be a very tricky operation.

3. Industrial Compatibility: The two industries must first determine the production standards and then the operational practices for Indian and German respectively in order to work together more smoothly.

4. Geopolitical Constraints: The unpredictable world political situation—especially the conflicts in Europe and the Indo-Pacific—has the potential to change the supplier’s resources and priorities.

5. Timely Execution: Continuous collaboration, clear understanding of each party’s needs, and reliable political backing from both sides are the factors that will help to prevent delays in the case of the P75I project.

To overcome these challenges, the parties involved will have to adopt a proactive approach, and create a situation of mutual trust. 

Way Forward

The partnership between India and Germany, in the future, must be a model of collaboration in dual-use technology that will promote both security and sustainability.

To begin with, the High Defence Committee and similar institutional mechanisms should be utilized to set up a schedule with deadlines and milestones for each of the ongoing projects. Besides, there will be ministerial dialogues and defence-industrial working groups that can facilitate the coherence of policy and fast-track decision-making.

Moreover, the two countries will be encouraged to collaborate more through cutting-edge technology research and development, e.g., AI, cyber defence, autonomous systems, and advanced materials. This will not only keep both nations at the forefront of the innovation race but also help in the provision of global technology and stability.

Furthermore, the establishment of resilient industrial supply chains through co-production and innovation sharing among companies will yield long-term strategic benefits. Specifically, there is an opportunity to engage other like-minded democracies in the Indo-Pacific region through trilateral partnerships.

At last but not least, the cooperation in defence should always match with the broader goals of peace, development, and a sustainable future. The construction of new maritime infrastructure, the provision of training in partner countries, and the adherence to a rules-based order will all contribute to the Indo-German partnership being a major source of stability in the Indo-Pacific area.

References

The Dialog, & TheDialog. (2025, November 4). ‘Germany and India poised to Expand Maritime and Defence Cooperation, ready to develop modern systems together’—Ambassador Ackermann – TheDialog. TheDialog – India-Germany Relations, https://thedialog.net/germany-and-india-poised-to-expand-maritime-and-defence-cooperation-ready-to-develop-modern-systems-together-ambassador-ackermann/ 

Global Public Policy Institute (GPPi). (2025, June 2). Seize the India–Germany moment. GPPi. https://gppi.net/2025/06/02/seize-the-india-germany-moment 

Defence Secretary co-chairs India-Germany High Defence Committee meeting in Berlin. (n.d.). https://www.pib.gov.in/PressReleasePage.aspx?PRID=2009618 

About the Contributor:

Aditi Bisht is a Research Intern at IMPRI. She holds a bachelor’s degree in Journalism and Mass Communication from Vivekananda Institute of Professional Studies (VIPS). Her research interests lie in government policy and economics

Acknowledgment:  The author sincerely thanks Ms. Aasthaba Jadeja and the IMPRI team for their valuable support. 

Disclaimer: All views expressed in the article belong solely to the author and not necessarily to the organisation.

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