Germany and India want to expand their cooperation in the armaments sector. What investors should know about it and how the defense stocks are performing.
A corresponding declaration of intent by the defense ministries was signed during Chancellor Friedrich Merz’s visit to India in Ahmedabad.
TKMS is supposed to build submarines in India
Contracts for specific projects were not initially concluded. However, India wants to build six submarines worth eight billion euros in Mumbai in cooperation with the German company thyssenkrupp Marine Systems (TKMS). The signing of an agreement on this is expected shortly and could open the door to further collaborations.
According to the latest statistics from the peace research institute Sipri, India is the world’s largest arms importer. Between 2019 and 2023, the country still purchased 36 percent of its defense equipment from Russia – even if the trend is downward. German arms exports to India could also reduce dependence on Russia.
A total of 27 agreements
A total of 27 declarations of intent and announcements were signed on the sidelines of the talks between Merz and Indian Prime Minister Narendra Modi – from cooperation in mining rare earth to promoting young hockey players in both countries to recruiting specialists for the German health system.
The recruitment of skilled workers from India has already been pushed forward by previous governments. According to the Federal Labor Office, the number of Indians in Germany who are subject to social security contributions rose from almost 25,000 to almost 170,000 between 2015 and 2025. And with almost 60,000, the largest group of foreign students comes from India.
This is how the stocks of defense companies react
The TKMS shares rose by 4.73 percent to 86.40 euros via XETRA. Rheinmetall’s shares are now trading 1.08 percent higher at 1,920.50 euros. HENSOLDT rose by 1.2 percent to 92.40 euros, while RENK stocks rose by 2.57 percent to 65.83 euros.
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AHMEDABAD (dpa-AFX)
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