PM’s Recent Visit to Germany & Overview of India-Germany Relations

There have been regular high-level visits, including at the highest level between India and Germany. Prime Minister Narendra Modi had recently paid visit to Germany at the end of May 2017. During his visit he met German Chancellor Angela Merkel and took part in the fourth round of the inter-governmental dialogue for unveiling a roadmap for the bilateral strategic ties.

Key Agreements Signed

The two countries inked a total of 12 agreements after the conduction of delegation level talks between Prime Minister Modi and German chancellor Angela Merkel. The agreements signed include nine joint declarations of intent (JDIs) and three memoranda of understanding (MoUs).

The agreements signed were:

• JDI between the Ministry of Communications and Information Technology and the Germany’s Ministry for Economic Affairs and Energy.
• Agreement on collaboration between the Ministry of Skill Development and Germany’s BMBF (Federal ministry of Education and Research). This agreement would facilitate training of Indian skill development officers and cluster managers.
• JDI between Ministry of Science and Technology and the BMBF for the establishment of an Indo-German Centre for Sustainability.
• JDI between the Ministry of External Affairs and the German Foreign Office on Cooperation on cyber policy.
• JDI between the Ministry of Finance and BMZ (Federal Ministry for Economic Cooperation and Development) on Indo-German Development Cooperation.
• JDI between the Ministry of Commerce and Industry and Germany’s Federal Ministry of Education and Research over continuation of cooperation in the field of advanced training of corporate and junior executives from India.
• JDI between the Department of Heavy Industries and BMBF (Federal Ministry of Education and Research) on cooperation in vocational education and skill development for machine tools.
• Agreement between Ministry of Health and BMG (Federal Ministry of Health) on cooperation in health sector.
• JDI between the Ministry of External Affairs and the German Foreign Office on collaboration between Foreign Service Institutes of both the country.
• Agreement between the AYUSH and BMG on cooperation in alternative medicine.
• JDI between the Ministry of Railways and German Ministry of Transport on cooperation in railway safety.
• JDI between the Ministry of Urban development and German Ministry for Economic Cooperation and Development on cooperation for sustainable urban development.

a new chapter of India-Germany relationship

The PM underlined the following five reasons that mark the start of a new chapter of bilateral relationship between India-Germany:

Innovation and democracy

Germany is known for its innovation and democratic credentials. Innovation has also become one of the top priorities for India. So, India and Germany can look forward to mutually assist each other in this front.

Global perspective

Indo-German relationship has both regional and global perspectives. The present geopolitical situation and international politics offer both India and Germany a unique opportunity to become permanent allies.

Jump in economic ties

In almost every field, India and Germany is witnessing a quantum jump in economic relationship and see an outcome-oriented momentum.

Skilling India

Partnership with Germany is crucial for making Skill India Mission successful. Germany has very aptly set global parameters in skill development.

Investment, football, climate protection

Germany is playing an important role as investor in India’s economy. Germany can also help India in the field of sports especially football. It can help India in training Indian youth in the sport.

India and Germany are also mutually cooperating in climate protection. India has stated that it is committed to the path towards a cleaner future regardless of the path taken by the US.

Other facets of cooperation

NSG Membership

Germany has supported India’s membership bid in the Nuclear Suppliers Group (NSG). India and Germany support each other’s candidature for a permanent seat in a reformed UN Security Council. In fact, the G4 nations (Brazil, Germany, India and Japan) are supporting each other’s candidature for a permanent seat in the reformed UNSC.

Terrorism

India and Germany have vowed to fight against the challenges posed by those actors who encourage, support and finance terrorism. Both the countries have called for the adoption of Comprehensive Convention on International Terrorism.

Strategic partnership

Since 2000, India and Germany have a ‘Strategic Partnership’. Both the countries are seen regularly conducting bilateral talks under the framework of India-Germany Intergovernmental Consultations. India was one among the first country to acknowledge the Federal Republic of Germany after the Second World War in 1945.

Economic ties

In 1951, India and Germany had decided to establish an economic relationship. As of now, Germany is one of the leading foreign direct investors in India. It is the seventh biggest FDI source for India. It has invested about $9.7 billion in India between April 2000 and March 2017. The investment constitutes about 3% of total FDI flows witnessed by India. Similarly, India has invested over $7 billion in Germany.

Textiles, metal products, electro-technology, leather goods, food & beverages, machinery, pharmaceuticals, auto components, chemicals, gems& jewellery etc., forms India’s main items of exports to Germany. Indian imports from Germany include machinery, electro-technology, metal products, chemicals, auto components, pharmaceuticals, paper and printing materials etc.

Defence Cooperation

The India-Germany Defence Cooperation Agreement was established in 2006. The Cooperation agreement offers a framework for defence cooperation and facilitates the conduct of annual High Defence Committee meetings at the level of Defence Secretary alternately in New Delhi and Berlin.

Irritants and Constraints

Germany is troubled by the fact that India is not yet committed to free trade. It is already worried over the US President Donald Trump’s policies that shun the ideals of free trade. India suffers a trade deficit in its trade with Germany. Also over the last six years, the total trade between India and Germany has witnessed a decline. The strategic partnership between India and Germany is also limited due to the fact that Germany does not enjoy a significant geopolitical influence in south Asian affairs.