India – Germany Relation Moving Closer

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Key Takeaways

  • India – Germany relations boosted by Indian Prime Minister’s Berlin campaign and related  6th India-Germany Inter-Governmental Consultations.
  • Areas of focus as part of 6th India-Germany Inter-Governmental Consultations which is  jointly chaired by Prime Minister Narendra Modi and Chancellor Olaf Scholz in Berlin
    • A Partnership of Shared Values and Regional and Multilateral Interests
    • A Partnership for Green and Sustainable Development – Berlin will provide €10 billion until 2030 to help implement New Delhi’s climate transition plans, and decided to sign a migration and mobility agreement that will benefit students and professionals from the two countries
    • A Partnership for Trade, Investment and Digital Transformation
    • A Partnership for Political and Academic Exchange, Scientific Cooperation, Mobility of Workforce and People
    • A Partnership for Global Health
  • Declaration Signed as part of India – Germany Virtual Meet
    • Joint Declaration on agro-ecology and sustainable management of natural resources
    • Joint Declaration of Intent on Forest Landscape Restoration
    • Joint declaration of Intent on Indo – German Green Hydrogen Task Force

Analysis of India – Germany Relation

  • India-Germany bilateral relations are based on common democratic values and are characterized by a high level of trust and mutual respect.
  • Timeline of India – Germany  Relation

Areas of Cooperation 

  • Political Relation 
    • Since 1971, there has been an Indo-German Parliamentary Friendship Group in the German Bundestag.
    • For the current term of the German Parliament, the Indo-German Parliamentary Friendship Group (formed in May 2018) consists of 24 members representing all six parties represented in the German Parliament. 
    • Common platforms shared by India – Germany bilateral relations are G4 , UN, G20.
    • Both countries have held dialogues on regional and international topics such as UN concerns, international cyber issues, disarmament and non-proliferation, export control, East Asia, Eurasia, and Africa, among others.
Germany will contribute an additional ten billion euros to India’s 2030 climate objective.
  • Defense Relation
    • The Defense Cooperation Agreement between India and Germany (2006) establishes a foundation for bilateral defense cooperation.
    • On February 12, 2019, during Raksha Mantri’s visit to Berlin, an Arrangement on Implementation of the Agreement Concerning Bilateral Defense Collaboration was signed to further expand the Defense Industry and defense cooperation between Germany and India.
    • Joint Naval Exercise  in Gulf of Aden in 2021.
  • Economic Relation 
    • With total trade of USD 21.07 billion in 2020-21, Germany is India’s top trading partner in Europe, accounting for 17.4 percent of the European market.
    • Since April 2000, Germany has been India’s seventh largest foreign direct investor.
    • In 2021, India purchased €946 million from Germany and exported €944 million, resulting in a €1.8 million trade deficit.
    • Since March 2016, the Department for Promotion of Industry and Internal Commerce (DPIIT) has operated a Fast-Track System for German enterprises to facilitate trade.
    • In 2019, India and Germany inked a Joint Statement to establish a Fast-Track framework in Germany for Indian companies.
    • The Make in India Mittelstand (MIIM) program is run by the Embassy of India in Berlin to help German Mittelstand (Medium Sized Companies) enter India.
    • Germany’s financial aid is mostly in the form of soft loans, composite loans, or grants, all of which are channeled through the German Development Bank.
    • Energy (renewables, Green Energy Corridor), Indo-German Solar Partnership, Skill Development, and Sustainable Urban Development (water/sanitation/waste, climate friendly urban mobility, smart cities) are among the major projects.
  • Science and Technology Relation
    • Intergovernmental Science and Technology  Cooperation Agreement in 1971 and 1974
    • Joint cooperation on clean energy.
  • Cultural Relation 
    • A good number of diaspora and Indian students used to live in Germany . 

Concerns in India – Germany Relation

  • As ease of business is good but technical regulation is hard
  • Minority issue on high point
  • India’s neutral stand on various global issues like the Ukraine crisis.
  • India’s relation with Russia.

Way Forward

  • The issue should be solved by bilateral talks and use of soft powers.

Pic Courtesy : Hindustan Times, The Economic Times

Content Source : PIB

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