India and Germany have opened discussions on lifting a longstanding ban on Rheinmetall AG, Germany’s largest arms manufacturer, signalling a possible shift in New Delhi’s defence engagement with Berlin. The dialogue, now in its early stages, points towards a gradual normalisation of ties with the defence major more than a decade after it was blacklisted.

A Decade-Old Blacklist Under Review

Rheinmetall was blacklisted by the Indian Ministry of Defence in 2012 over alleged bribery charges involving officials from the Ordnance Factory Board. The company has consistently denied any wrongdoing. The ban effectively barred Rheinmetall from participating in Indian defence tenders or forming joint ventures with domestic firms.

According to German Ambassador to India Philipp Ackermann, preliminary dialogue is now underway between the two governments. “Rheinmetall is, in principle, interested in dealing with India, even setting up shop here,” Ackermann noted, adding that the process remains at an early but positive stage. Both the ministries of external affairs and defence are reportedly involved in evaluating the matter.

Reopening The Defence Channel

The potential reconsideration aligns with India’s broader efforts to expand defence partnerships with technologically advanced nations. Rheinmetall, with annual revenue estimated at around 10 billion euros, specialises in armoured vehicles, air defence systems, and advanced munitions — areas where India seeks technological collaboration and industrial diversification as part of its Make in India and Atmanirbhar Bharat initiatives.

Reallowing Rheinmetall’s participation could reinvigorate Indo-German defence trade, which has remained modest compared with New Delhi’s cooperation with France, the United States, and Russia. It would also offer Indian defence firms access to cutting-edge land and ammunition technologies that have long been under export restriction.

Submarine Partnership Progress

The renewed engagement comes alongside another major Indo-German collaboration — the potential submarine deal between Germany’s ThyssenKrupp Marine Systems (TKMS) and Mumbai-based Mazagon Dock Shipbuilders Ltd (MDL). The deal, reportedly valued in the multi-billion-euro range, involves the construction of six advanced conventional submarines under India’s Project-75(I) program.

Ambassador Ackermann confirmed that negotiations are progressing well and that the due diligence process has been completed. He expressed optimism that the agreement could be finalised next year, emphasising it as a potential “gamechanger” in bilateral defence ties. The project, expected to feature significant technology transfer and local manufacturing, would represent a major leap in Indo-German strategic cooperation.

Strategic And Political Dimensions

The evolving defence engagement is expected to gain further momentum with the anticipated visit of German Chancellor Friedrich Merz to India in the coming months. His visit may serve as a political catalyst for both the Rheinmetall reconsideration and the TKMS submarine agreement.

Germany views India as a key partner in its Indo-Pacific strategy, while India sees in Germany a reliable source of high-end defence technology and engineering quality. The ongoing negotiations signal a broader strategic convergence between the two nations amid evolving global security dynamics and supply-chain diversification efforts in the defence sector.

Outlook

If New Delhi proceeds with delisting Rheinmetall, it would mark one of the most symbolic reversals of a ban stemming from the UPA-era blacklisting policy, which had restricted several foreign arms suppliers on corruption grounds. A successful resolution would not only restore commercial opportunities for Rheinmetall but also demonstrate India’s reassessment of legacy defence bans based on present-day strategic priorities.

With the submarine project and potential Rheinmetall re-entry, India and Germany appear poised to elevate their defence cooperation to a level matching their shared economic and industrial strengths — blending German precision engineering with India’s growing manufacturing and strategic ambition.

Based On Times Now Report