By A Correspondent

New Delhi: India and Germany are edging closer to a significant reset in their defence partnership, with both sides holding early discussions on lifting the decade-old ban on German arms giant Rheinmetall AG.

The move signals a potential shift in New Delhi’s defence procurement strategy and could pave the way for deeper industrial collaboration with Berlin.

The company, Germany’s largest defence manufacturer with annual revenues of nearly Euro 10 billion, was blacklisted by India in 2012 over allegations of bribing officials in the then Ordnance Factory Board.

Rheinmetall has consistently denied the charges. The ban barred it from participating in tenders or partnering with Indian firms, effectively freezing all cooperation for over a decade.

German Ambassador to India Philipp Ackermann, as reported by the Indian media, confirmed that initial talks on Rheinmetall’s potential delisting have begun.

“Rheinmetall is, in principle, interested in dealing with India, even setting up shop here. There is still a way to go, but there is a direction; and that’s a good start,” he said. India’s ministries of defence and external affairs are currently assessing the matter.

Stronger Defence Ties on the Horizon

The renewed push comes at a time when India is actively diversifying its defence partnerships, focusing on high-tech, high-value collaborations under Make in India and Atmanirbhar Bharat (Self-Reliant India).

Rheinmetall’s expertise in armoured vehicles, air defence systems and advanced munitions makes it a potentially valuable partner as India seeks to modernise land forces and boost indigenous production.

Submarine Deal Could Be a ‘Gamechanger’

The discussions coincide with major progress on another flagship Indo-German defence project — the proposed submarine partnership between ThyssenKrupp Marine Systems (TKMS) and Mazagon Dock Shipbuilders Limited (MDL).

The multi-billion-euro deal under India’s Project-75(I) aims to build six cutting-edge submarines in Mumbai.

Ambassador Ackermann said negotiations “look very good,” with due diligence already completed. He expressed hope that the agreement could be signed next year, describing German submarines as “quality products,” noting that India’s four HDW submarines from the 1980s are still performing well.

Defence Capital exclusively reported earlier this month that Indian Navy is targeting signing of the submarine deal with MDL-TKMS before this fiscal year ends in March 2026.

Political Push Expected Soon

The anticipated visit of German Chancellor Friedrich Merz to India in the coming months is expected to accelerate both the Rheinmetall decision and the submarine deal, giving a major boost to bilateral strategic cooperation.

If approved, Rheinmetall’s reinstatement would mark one of the most symbolic reversals of India’s UPA-era blacklist policies, and open the door to a new chapter in Indo-German defence ties.

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