India-Germany Relations

IN NEWS:

• German Foreign Minister Annelina Baerbock visited India. During the 2-day visit, discussions on bilateral cooperation, energy security and Germany’s Indo-Pacific pivot were held.
• During the visit, an agreement on the comprehensive migration and mobility partnership was signed.

BACKGROUND:

• India was one of the first countries to end the state of war with post-war Germany in 1951 and amongst the first countries to recognize the Federal Republic of Germany (FRG).
• The relationship strengthened significantly in the 1990s following India’s economic liberalization and the end of Cold War.
• Germany is amongst India’s most important partners both bilaterally and in the global context.

------------------------------------------

AREAS OF COOPERATION:

• Political interactions:
  • India and Germany have a “Strategic Partnership” since 2001. This has been further strengthened with the Inter-Governmental Consultations (IGC) at the level of Head of Governments (German Chancellor and PM). Also, regular visits take place from both sides.
• Economic & Commercial Relations:
  • Germany is India’s largest trading partner in the EU and its sixth most important trading partner worldwide.
  • Germany is the 7th largest foreign direct investor in India since April 2000.
  • In 2019, India has joined the Alliance for Multilateralism, an initiative of France and Germany.
  • In 2020, over 1,700 German companies provided over 400,000 jobs in India. At the same time, more than 200 Indian companies have invested more than Euro 6.5 billion in Germany.
• Development Cooperation:
  • Financial assistance from Germany is mainly as soft loan, composite loans or grants routed through KfW, German Government’s Development Bank. Technical assistance is provided through GIZ, German Government’s development agency.
  • Major projects are in the sectors of energy (Renewables, Green Energy Corridor), Indo-German Solar Partnership, Skill Development and Sustainable urban development (water/sanitation/waste, climate friendly urban mobility, smart cities).
• Sister States:
  • Some States and cities of India and Germany have entered into twinning arrangements.
  • Eg: Karnataka and Bavaria, Mumbai and Stuttgart & Maharashtra and Baden-Wurttemberg.
• Institutional cooperation:
  • Several institutionalized arrangements exist between India and Germany to discuss bilateral and global issues of interest namely, Foreign Office Consultations, High Defence Committee, Indo-German Energy Forum, Indo-German Environment Forum, S&T Committee, and Joint Working Groups in various fields, including skill development, automotive, agriculture, coal, tourism, water and waste management.
• Cooperation in international forum:
  • Both countries consult each other and coordinate positions in multilateral fora including G-20 and in the UN on global issues such as climate change, sustainable development, rules-based order in the Indo-Pacific etc.
  • Both countries along with Brazil and Japan have formed the Group of 4 countries to push for reforms and expansion of the UNSC.
  • There have been consultations between the two countries on regional and international issues such as International Cyber Issues, Disarmament & Non-proliferation, Export Control, East Asia, Eurasia, Africa etc.
• Defence Cooperation:
  • India-Germany Defence Cooperation Agreement (2006) provides a framework for bilateral defence cooperation. An Arrangement on Implementation of the 2006 Agreement was signed in 2019 during the visit of Raksha Mantri to Berlin.
  • Military exercises:
    • German and Indian air forces had sent fighter jets to take part in the recent multinational military exercise ‘Pitch Black 2022’ in Australia.
    • Indian and German Navies carried out a joint exercise in the Gulf of Aden, in the Indian Ocean leg of Indo-Pacific Deployment 2021.
    • Germany is also planning to conduct more joint military exercises with India in the Indo-Pacific.
• Science & Technology:
  • Indo-German Science & Technology cooperation started with the signing of the Intergovernmental S&T Cooperation Agreement in 1971 and 1974.
  • There are more than 150 joint S&T research projects and 70 direct partnerships between universities of both countries.
  • India's scientific establishments have close partnerships with German R&D institutions like the Max Planck Society.
• Clean energy:
  • Germany had recently announced that it had finalised 22 projects totaling 1 billion Euro to support transition to renewable energy in India.
• Culture:
  • German interest in the Indian philosophy and languages resulted in the setting up of the first Chair of Indology at the University of Bonn in 1818.
  • The Government of India has funded 31 short term rotating chairs of Indian studies in German Universities so far.
  • Indian films and artists regularly feature at the Berlin International Film Festival and at Indian Film festivals held in other parts of Germany.
• Parliamentary exchange:
  • Visit by Parliamentarians from both sides take place regularly under the Indo-German Parliamentary Friendship Group.
• Diaspora:
  • There are about 1.7 lakh Indians and people of Indian origin in Germany. The Indian diaspora mainly comprises of professionals, technocrats, businessmen/traders and nurses.
  • The recently signed comprehensive migration and mobility partnership has provisions to facilitate mobility and employment opportunities for fostering the exchange of skills and talents.

AREAS OF CONCERN:

• Dominance of China:
  • Germany’s trade volume with India was less than 10 percent of its trade volume with China in 2020. Hence, though there have been increasing criticisms of China, Germany is not ready to really upset China in important matters.
• Protectionist policies:
  • In recent times, India has exhibited a protectionist tendency under Atmanirbhar policy and reduced procurement opportunities for foreign firms. This has raised concerns among German investors.  
• Divergence on security policy:
  • India, due to its territorial conflicts with China and Pakistan, is pushing for closer cooperation with Germany in the realm of armaments. However, the new German government has a rather restrictive arms export policy.
• Comments on Kashmir issue:
  • Recently, during a bilateral press conference with Pakistani Foreign Minister, German Minister Baerbock appeared to support internationalising the Kashmir issue. This received criticism from India’s foreign ministry.
• India’s relations with Russia:
  • India has a longstanding relationship with Russia. However, Germany and the EU have been trying to isolate Russia for its actions over Ukraine. Hence, it will be a diplomatic challenge for India to keep close relations with all parties.
• Declining German influence:
  • Contrary to France and the UK, Germany has no strategic footprint in Asia. Hence, the India-Germany strategic relationship is limited by the declining significance of German geopolitical influence in Asian affairs.

WAY FORWARD:

• Strengthen Indo-German Relations:
  • Strong Indo-German relations is important for resolving issues of mutual interest like climate change, energy security, international peace and countering an aggressive China. To realise this, high-level political talks, which have been less frequent in recent years, must be strengthened and utilized.
• Diversify cooperation:
  • There should be close cooperation on cyber governance, cyber security, capacity building, digital economy, and critical and emerging technologies, and on establishing diverse and trusted technology supply chains.
• Finalise Indo-EU BTIA:
  • India and the European Union have been negotiating a Bilateral Trade and Investment Agreement (BTIA), but it is pending since 2007. For closer convergence with EU in general and Germany in particular, India should engage in finalisation of the trade deal as soon as possible.
• Strengthen defence cooperation:
  • There should be commitment to build upon defence cooperation and information sharing arrangements to coordinate more closely across the Indo Pacific.

PRACTICE QUESTION:

Q. Germany is amongst India’s most important partners both bilaterally and in the global context. Comment.