During his visit to Germany, Raksha Mantri Shri Rajnath Singh addressed the Defence Investor Summit in Munich, signalling a shift in India’s defence engagement model from a buyer–seller framework to co-development and co-production partnerships. The outreach was aimed at German defence industry stakeholders, positioning India as a long-term manufacturing and innovation partner.
This approach is anchored in India’s pursuit of strategic autonomy, where self-reliance is framed not as isolation but as joint capability creation. German industry has been invited to collaborate in niche, high-technology domains, including AI-enabled Unmanned Aerial Systems (UAS), advanced sensors, and underwater communication systems, where India seeks to scale both design and manufacturing capacity.
The visit also advanced institutional cooperation through the Defence Industrial Cooperation Roadmap, aimed at streamlining engagement between governments and industry. A parallel arrangement on UN Peacekeeping training signals broader defence collaboration beyond hardware production.
Maritime capability emerged as a key priority, with engagement at the TKMS submarine facility in Kiel, reflecting India’s focus on naval modernisation and underwater systems. India also positioned itself as a stable and predictable manufacturing ecosystem, highlighting its skilled workforce, startup hubs, and regulatory reforms to attract long-term industrial partnerships.
Key Strategic Focus Areas
Co-Development Model: Transition from imports to joint design, development, and production
Niche Technologies: Focus on AI-enabled UAS, advanced sensors, sonobuoys, and underwater transmitters
Maritime Capability: Engagement with TKMS to strengthen submarine and naval systems
Industrial Ecosystem: Leveraging Bengaluru and Hyderabad hubs for innovation and manufacturing
Supply Chain Strategy: Building resilient and diversified global defence supply chains
Institutional Framework: Implementation of Defence Industrial Cooperation Roadmap
Ease of Doing Business: Emphasis on FDI reforms, transparency, and regulatory stability
What is "Co-Development & Co-Production"?
Co-development and co-production mean that two countries (or their companies) work together from the very first sketch of a weapon system until the final product rolls off the assembly line. Instead of India simply buying a finished submarine or drone from Germany (the "buyer-seller" model), Indian engineers and German engineers design it together, sharing intellectual property (IP).
The parts are then manufactured in India, often for both countries' militaries or for export to third nations. This ensures that India gains the "know-how" (technology transfer) and creates local jobs, while Germany gains access to a cost-effective manufacturing base.
Policy Relevance
Ensuring Strategic Autonomy: By designing and producing niche tech domestically with Germany, India reduces its reliance on any single nation for critical defence spares, ensuring "Self-Reliance" during times of global uncertainty.
Boosts the "Defence Industrial Base": The focus on collaboration among industry and academia facilitates the creation of Deep-Tech Startups, contributing to India’s goal of becoming a developed nation by 2047.
Diversifying Supply Chains: Partnering with a reliable European power like Germany helps India de-risk its defence inventory from traditional dependencies, aligning with the "ReArm Europe" initiative.
Maritime Security: The engagement with TKMS is critical for the Indian Navy’s modernisation, particularly for underwater capabilities required to maintain stability in the Indian Ocean Region (IOR).
Capitalising on Digital India: Utilising India’s world-class Digital and AI capabilities for UAS and sensors allows India to leapfrog traditional defence technologies and lead in next-generation electronic warfare.
Relevant Question for Policy Stakeholders: With the 'Defence Industrial Cooperation Roadmap' now in place, how can the Ministry of Defence (MoD) create a 'Fast-Track German Desk' to ensure that technical IP-sharing agreements between German OEMs and Indian startups are cleared within a fixed 60-day window?
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