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).

What’s in Today’s Article?

• India - Germany Relations
• Highlights of the German Chancellor’s India Visit
• Conclusion

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.