German Chancellor Olaf Scholz backed increased arms cooperation with India, as he concluded his visit to the South Asian country on Saturday.

Speaking in the western Indian state of Goa, Scholz noted how the two countries had concluded a strategic partnership more than 20 years ago and now aim to intensify their alliance, including in weapons exports.

"This will play a larger role in the future, and it is right that it should," he said, without giving further details.

The chancellor was referring to the 27 new cooperation agreements signed on Friday in New Delhi during talks with Indian Prime Minister Narendra Modi, in the fields of renewable energy, research and critical technologies.

Defense cooperation, co-production planned

Both leaders also agreed to support "enhanced industry-level cooperation in the defense sector," according to a joint statement, which singled out a specific focus on "technology collaboration, manufacturing/co-production and co-development of defense platforms and equipment."

In the first six months of the year, India was the third-largest recipient of German arms, according to German Economy Ministry data requested by a lawmaker from the populist leftist Sahra Wagenknecht Alliance. Berlin approved licenses worth €153.75 million (approximately $166 million).

Earlier this year, Germany lifted curbs on the export of small arms and their spare parts to India as an exception, due to the growing ties between the two countries. Berlin maintains strict rules on the sale of small arms to non-NATO countries.

Germany's Thyssenkrupp Marine Systems hopes to participate in the construction of six submarines for the Indian Navy. While a declaration of intent was agreed last year, the Indian government has yet to take a decision.

European aerospace giant Airbus is also seeking to sell its A400M transports to India, but negotiations on a possible contract are still in the early stages.

Scholz meets German navy fresh from Indo-Pacific patrols

Also Saturday, Scholz paid tribute to German sailors who had just wrapped up several days of joint military exercises with the Indian Navy.

The Frankfurt am Main naval supply ship and the Baden-Württemberg frigate departed Germany's North Sea port of Wilhelmshaven in May, before crossing the Atlantic and passing the Panama Canal to the Pacific. They then passed through the Taiwan Strait, before entering Mormugao Port in Goa on Saturday.

Scholz said the German ships are contributing to ensuring the freedom of global maritime traffic. 

"It's important that our navy is involved in this to show that it is something that we strive for together," he said.

During the visit, Scholz also advocated for skilled workers for the German labor market and pressed for swifter negotiations between the European Union and India over a free trade agreement.

He said there is "plenty of potential" in trade with the South Asian country and for investments.

mm/rmt (AFP, dpa)