#16 - WK03
NATO Defends Against NATO
What a week it’s been! While German Chancellor Friedrich Merz was in India sealing deals and strengthening ties, his first visit to Asia as Chancellor, markets were already responding. ThyssenKrupp Marine Systems (TKMS) saw its shares jump 10% as defense cooperation took center stage in the 19 agreements signed between our two nations.
But as India-Germany relations reached new heights with €1.24 billion committed to green energy projects, the Atlantic grew stormier. NATO allies, including Germany, are now deploying troops to Greenland, not to counter Russia or China, but to protect Danish territory from potential U.S. aggression. Yes, you read that right. NATO members defending against NATO.
In this week’s newsletter, we dive deep into Chancellor Merz’s visit, the meetings, and what these agreements mean for both economies. We explore the renewable energy opportunities emerging from redevelopment of Ukrain after peace deal.
On a personal note, I’ve built something for our community: deingeld.in a dual-currency portfolio tracker designed for those of us investing across India and Germany. It’s in testing mode, and I’d love your feedback. See exactly how EUR/INR movements impact your returns, all in one dashboard. Give it a try and let me know what you think.
Stock Market
Sensex had a mixed week, starting around 84,000 early on but facing selling pressure mid-week before recovering slightly to close at 83,570 on Friday. Overall, it ended the week a bit lower amid broader market caution, though IT stocks like Infosys provided some lift with better growth outlook.
DAX showed strength, climbing from about 25,124 on Jan 9 to peaks above 25,400 mid-week before settling at around 25,297 by Friday, for a modest weekly gain of 0.14%. Energy and AI-related names like Siemens Energy drove gains, offsetting losses in chemicals and telecom.
Germany News Roundup
Germany narrowly avoids third recession year, as its economy shows resilience amid global challenges and geopolitical tensions, preventing a prolonged downturn in 2026. - DW
US Investor Plans €4 Billion Data Center in NRW, aiming to develop a state-of-the-art facility for cloud and AI services with completion expected in the early 2030s in Lippetal’s industrial area. - Heise
AfD Youth Plans NRW Chapter Formation, aiming to establish ‘Generation Deutschland’ in Iserlohn this Saturday, potentially facing protests. - IKZ-Online
End of Citizen’s Allowance for Ukrainians in Germany, may increase state costs due to hindered labor market integration and higher administrative expenses, warns economist Marcel Fratzscher amid policy changes by Merz government. - FR.de
Merz Calls to End Working Hours Law, arguing it should be regulated by trade partners, not government, sparking sharp opposition from SPD defending employee protections and cautioning against deregulation risks. - FAZ
German Military Deployment to Greenland Begins, aiming to counter Russian and Chinese threats in the Arctic through coordinated NATO efforts under Danish leadership amid rising geopolitical tensions. - DW
Lufthansa to Equip All Aircraft with Starlink Wi-Fi, providing high-speed, free internet from 2026 on 850 planes, enhancing streaming and cloud usage, making it Europe’s largest Starlink-equipped airline fleet. - Lufthansa Group
Germany’s Gas Reserves Hit Historic Low, raising concerns over supply shortages as rapid depletion during cold weather may exhaust reserves before the heating season ends, prompting calls for stronger government intervention. - Balkanweb
India News Roundup
India-Germany Strengthen Strategic Partnership, with enhanced cooperation in defense, trade, technology, sustainable development, and education following Chancellor Merz's visit to India in January 2026. - MEA
India-EU Trade Deal Signing Set for 2026, marking the EU's largest-ever trade pact excluding agriculture but expanding economic ties and market access in sectors like technology, pharmaceuticals, and automobiles. - India Briefing
India Ends 10-Minute Delivery Deadlines, to improve gig workers' safety and address concerns raised during nationwide strikes against hazardous working conditions in quick-commerce platforms. - BBC News
Trump Imposes 25% Tariff on Iran Traders, affecting major partners like India, China, and UAE with implications for trade relations and key projects like Iran's Chabahar port development. - The Hindu
Deutsche Bank's India Retail Assets Draw Final Bids, with Kotak Mahindra and Federal Bank in advanced talks to acquire $2.5 billion portfolio including loans and wealth management, signaling expansion in India’s banking sector. - Livemint
Air India Upgrades Mumbai-Frankfurt Fleet, with new B787-9 aircraft featuring 100% new or upgraded products, enhancing passenger experience and supporting ongoing fleet transformation through 2026. - The Business Guardian
German Chancellor Merz's India Visit
Major Announcements and Agreements
German Chancellor Friedrich Merz, accompanied by a high-powered delegation including 23 top German CEOs, made India his first destination in Asia as Federal Chancellor, marking a significant milestone in India-Germany relations as the two nations celebrate 75 years of diplomatic relations and 25 years of their Strategic Partnership.
Defense and Security:
Joint Declaration of Intent (JDoI) signed on strengthening bilateral defence industrial cooperation
Germany’s intent to participate in Naval Exercise MILAN and 9th Indian Ocean Naval Symposium (IONS) Conclave of Chiefs in February 2026
Germany’s participation in Air Combat Exercise TARANG SHAKTI in September 2026
Germany’s decision to deploy a Liaison Officer to the Information Fusion Centre-Indian Ocean Region (IFC-IOR)
Establishment of a new Track 1.5 Foreign Policy and Security Dialogue between the two countries
New Defence Industrial Cooperation Roadmap for long-term co-development and co-production
Source : pmindia.gov.in
Trade and Economy:
JDoI signed on strengthening bilateral economic cooperation by establishing a CEO’s Forum, integrated into a Joint India-Germany Economic and Investment Committee
Both leaders reiterated support for the conclusion of the India-EU Free Trade Agreement
Launch of India-Germany Centre of Excellence (CoE) to promote shared knowledge and innovation
Critical and Emerging Technologies:
Three JDoI signed on India Germany Semiconductor Ecosystem partnership and in the field of critical minerals and telecommunications
MoU signed between National Institute of Electronics & Information Technology (NIELIT) and Infineon Technologies AG, German semiconductor manufacturing and design company
Finalization of Work Plan for 2026-27 under the Indo-German Digital Dialogue focusing on internet & data governance, AI, semiconductors and Industry 4.0
Establishment of bilateral Indo-Pacific consultation mechanism
Green Energy and Climate:
Germany committed new funding of 1.24 billion Euros under the Green and Sustainable Development Partnership (GSDP), supporting projects in renewable energy, green hydrogen, PM e-Bus SEWA, and climate-resilient urban infrastructure
MoU signed between the Petroleum and Natural Gas Regulatory Board (PNGRB) and the German Technical and Scientific Association for Gas and Water Industries (DVGW)
Offtake agreement for Green Ammonia between Indian Company AM Green and German company Uniper Global Commodities
Launch of Battery Storage working group under the India-Germany platform for Investments in Renewable Energy worldwide
Science and Research:
JDoI signed for cooperation in Research and Development (R&D) on Bioeconomy
JDoI signed for the extension of tenure of the Indo-German Science and Technology Centre (IGSTC)
Education and Skill Development:
Indo-German Roadmap on Higher Education signed between India and Germany
JDoI signed on the Framework conditions of Global Skill Partnerships for fair, ethical and sustainable recruitment of healthcare professionals
JDoI for establishment of a National Centre of Excellence (NCoE) for Skilling in Renewable Energy at National Skill Training Institute (NSTI), Hyderabad
Traditional Medicine:
MoU signed between All India Institute of Ayurveda (AIIA) and Charité University, Germany
Cultural and People-to-People Ties:
MoU signed between National Maritime Heritage Complex (NMHC), Lothal and German Maritime Museum-Leibniz Institute for Maritime History, Bremerhaven
Two JDoI signed for cooperation in the field of Sport and Postal services
Letter of Intent (LoI) signed between the Department of Posts and Deutsche Post AG
MoU signed between Hockey India and the German Hockey Federation for Youth Hockey Development
Opening of Honorary Consulate in Ahmedabad
Migration and Mobility:
Germany announced visa-free transit for Indian passport holders for travel through Germany
Expanded legal skilled migration under the Migration and Mobility Partnership Agreement
Strategic Significance
The visit reflects the high priority Germany attaches to India as a key strategic partner in the Indo-Pacific, with cooperation expanding to include new areas such as semiconductors, critical minerals, emerging technologies, and green fuels, alongside defense, climate, scientific research, and labor mobility.
Both leaders agreed that the next India-Germany Inter-Governmental Consultations will be held in Germany later in 2026, ensuring continued momentum in this deepening strategic partnership.
Read more at pmindia.gov.in / Affairs Cloud
Opportunity
Russia-Ukraine Peace Deal and Reconstruction - Part 3
Energy and Renewables
Ukraine’s energy reconstruction centers on renewables, creating a €50 billion opportunity over the next decade. The country aims for 50% renewable energy by 2035, up from just 15% in 2021, a transformation that positions German renewable companies for substantial growth.
Why Renewables Lead Ukraine’s Rebuild
Decentralized solar and wind systems prove more resilient against attacks than centralized power plants. Ukraine already built more onshore wind capacity (114 MW) since the war began than England, powering 200,000 homes near the frontline. The EU’s Ukraine Facility provides up to €50 billion through 2027, with renewable projects receiving priority funding.
Top German Companies to Watch
Siemens Energy (ENR) remains the strongest play with its Siemens Gamesa wind division and grid solutions. The company supplies turbines for Ukraine’s wind projects and grid reconstruction systems, dual revenue streams from both generation and transmission infrastructure.
RWE AG (RWE) operates Europe’s largest renewable portfolio at 18 GW installed capacity. The company plans €55 billion investment by 2030 to expand renewables capacity beyond 65 GW, with Eastern European projects as key growth drivers.
Nordex SE (NDX1) manufactures onshore wind turbines specifically suited for Ukraine’s geography. The company’s N149 and N175 models match Ukraine’s wind conditions perfectly, and it already supplies equipment to DTEK’s Ukrainian projects.
SMA Solar Technology (S92) produces photovoltaic inverters and battery storage systems essential for distributed solar installations. Ukraine’s rooftop solar program for schools and hospitals creates immediate demand for SMA’s residential and commercial solutions.
EnBW Energie (EBK) develops both onshore and offshore wind farms across Europe. The company maintains strong Eastern European relationships through existing projects in Poland and Romania.
ETF Options
iShares Global Clean Energy UCITS ETF provides diversified renewable exposure including several German companies. Lower geographic concentration risk than single stocks.
Lyxor New Energy UCITS ETF tracks renewable energy technology companies with emphasis on European manufacturers.
Decentralized renewable infrastructure serves both Ukraine’s energy security and investor interests, damaged solar panels or wind turbines can be replaced individually rather than rebuilding entire power plants.
Until Next Sunday…
Conclusion
As we wrap up this week’s newsletter, one thing is clear: the world isn’t standing still.
Before you go, I genuinely hope you’ll check out deingeld.in. I built it because I needed it myself, a clear view of how my India and Germany investments perform together, accounting for currency swings that can make or break returns. It’s free to try, still in testing, and your feedback would mean a lot.
Stay informed, stay invested, and see you next week.
See you next Sunday,
Jimit Patel