In a significant move, India and Germany on Thursday agreed to set up a High Technology Partnership Group even as the European power, for the first time, expressed its support for New Delhi's bid for full membership to Multilateral Export Control Regimes (MECRs).
Germany is second country to have such a partnership with India after the US.
"We look forward to expanded defence cooperation anchored in technology transfer, co-development and co-production in India.
"High technology commerce would benefit from further easing of German export controls for India. The agreement today on scientific collaboration on technologies for civilian security adds a new dimension to our growing security cooperation.
"I am very happy that, following our discussion, we have agreed to set up a High Technology Partnership Group," Prime Minister Manmohan Singh said at a joint press conference with German Chancellor Angela Merkel with whom he co-chaired the second round of Inter-Governmental Consultations (IGCs).
According to officials Germany also supported India's bid for full membership to four export control regimes - The Nuclear Suppliers Group, Wassenaar Arrangement, Australia Group and Missile Technology Control Regime.
They also said Germany has expressed interest to India's proposal of co-development and joint-manufacturing of high technology products.
Asserting that it is a "responsible nuclear power", India has sought full membership to various export control regimes.