Vajram-And-RaviVajram-And-Ravi
hamburger-icon

India - Germany Bilateral Relations

27-10-2024

10:51 AM

timer
1 min read
India - Germany Bilateral Relations Blog Image

What’s in today’s article?

  • Why in News?
  • India - Germany Relations
  • Highlights of the German Chancellor’s India Visit
  • Conclusion

Why in News?

  • On his three-day visit to India, German Chancellor Olaf Scholz met the Indian PM, focusing on strategic partnerships, visas for skilled workers, and mutual cooperation.
  • Modi and Scholz also co-chaired the seventh round of India-Germany Intergovernmental Consultations (7th IGC).

India - Germany Relations:

  • Overview:
    • India and Germany have a 'Strategic Partnership' since 2000.
    • Recently, the two countries have intensified their cooperation in areas such as AI, cybersecurity, circular economy, smart farming, sustainable development, etc.
    • This underscores the growing importance of India-Germany relations in the current global context.
  • Bilateral trade relations:
    • Germany is India’s largest trading partner within the European Union (EU), with bilateral trade reaching US$26 billion in 2022-23.
    • Indian exports to Germany rose to US$10.1 billion, while German imports to India stood at around US$14.9 billion.
    • While Germany and India lack a direct free trade agreement (FTA), Germany is an advocate for the ongoing EU-India FTA negotiations, which aim to enhance economic ties further.
  • Intergovernmental Consultations (IGC):
    • The launch of IGC in 2011 at the level of Heads of Government allows for a comprehensive review of cooperation and identification of new areas of engagement.
    • India is among a select group of countries with which Germany has such a dialogue mechanism.
  • Focus on Indo-Pacific and strategic alliances: With rising geopolitical concerns in the Indo-Pacific, German and European policymakers view India as a vital partner for economic and strategic stability.

Highlights of the German Chancellor’s India Visit:

  • Bilateral talks on global issues:
    • Russia-Ukraine conflict:
      • Modi underscored India’s position on peaceful conflict resolution and commitment to contribute towards peace.
      • Scholz urged India to support a political solution to the Ukraine crisis, lauding India’s stable role in South Asia.
    • West Asia: Both leaders stressed the importance of avoiding further escalation, advocating for ceasefire and a two-state solution for resolving the Israeli–Palestinian conflict.
    • Indo-Pacific security and China’s influence:
      • Modi and Scholz emphasised the importance of a rules-based order in the Indo-Pacific and the need for maritime freedom.
      • Both nations committed to enhancing defence ties, agreeing to jointly tackle regional security challenges.
    • Reform of global institutions: Both leaders underscored the need for reform in multilateral organisations like the UN Security Council to better address contemporary challenges.
    • Expanded partnership vision: Scholz and Modi highlighted a shift from a “whole of government” to a “whole of nation” approach, signifying a broader, deeper collaboration.
  • Key announcements and agreements:
    • Visa expansion for skilled Indians: Germany to increase annual visas for skilled Indians from 20,000 to 90,000, recognising India's skilled workforce as a crucial asset for Germany’s economic growth.
    • Focus on India Strategy: Germany’s holistic approach to its partnership with India, marked by the ‘Focus on India’ document, emphasises Germany’s trust and investment in India’s workforce and strategic cooperation.
    • Reducing dependency on China: In light of global geopolitical shifts, Chancellor Scholz emphasised avoiding "one-sided dependencies," particularly in strategic areas such as critical raw materials.
      • Both leaders aligned on positioning India as a key partner to diversify supply chains.
    • India as a hub for global manufacturing: PM Modi promoted India as an emerging hub for trade and manufacturing, encouraging German businesses to “Make in India, Make for the World.
  • Key areas of collaboration:
    • Enhanced defence and security cooperation:
      • Modi and Scholz signed key agreements, including one on the exchange and protection of classified information, signalling a deepening mutual trust in defence and security.
      • The Mutual Legal Assistance Treaty (MLAT) in criminal matters aims to bolster cooperation on legal issues, enhancing India and Germany's ability to jointly address security challenges.
    • Clean energy and sustainable development:
      • Green hydrogen roadmap: It marks a significant step in renewable energy collaboration, contributing to both nations' climate goals.
      • Joint Research and Development (R&D): A Joint Declaration of Intent supports cooperation in R&D on advanced materials, underscoring a shared commitment to technological innovation.

Conclusion:

  • The Modi-Scholz meeting and the ensuing agreements reflect a new era in India-Germany relations.
  • From enhanced trade and defence cooperation to shared goals in clean energy, both countries have set a strong foundation for mutual growth and global influence, reinforcing their status as pivotal players on the world stage.

Q.1. What is the India-EU BTIA?

The India-EU Broad-based Trade and Investment Agreement (BTIA) is a proposed free trade agreement between India and the European Union (EU) that covers trade in goods, services, and investments. The BTIA would remove barriers to trade and investment, and open new markets for both countries.

Q.2. What is green hydrogen?

Green hydrogen is hydrogen produced by the electrolysis of water, using renewable electricity. Production of green hydrogen causes significantly lower greenhouse gas emissions than production of grey hydrogen, which is derived from fossil fuels without carbon capture.

Source: Scholz visit: PM Modi hails Germany call to increase visas for skilled Indians

TH