ANALYSIS:G20
Dr. Arvind Kumar*
The Migration and Mobility Partnership Agreement, which was inked in December 2022, will strengthen this cooperation even more. Both nations are enhancing collaboration in the areas of climate action and sustainable development goals through the Green and Sustainable Development Partnership, which was first announced in 2022. There is active collaboration between India and Germany in the battle against terrorism and separatism. The need for coordinated action to put an end to cross-border terrorism was also acknowledged by both nations.
At a time when democracy is threatened globally by authoritarian diplomacy and war, like minded global allies will be the key. The moment for western democracies to be building a meaningful cooperation with India is ripe. The EU seems to be recognizing this, as is the Biden administration. Olaf Scholz, the chancellor of Germany, spent two days in India and had extensive discussions with Prime Minister Narendra Modi. His trip to India was his first since becoming the German Chancellor in 2021. India and Germany have a strategic relationship, and Germany is India’s top trading partner in the EU (EU). In light of the present political and economic unrest in the Indo-Pacific region, Germany also recognises the geostrategic significance of India. Since 2001, the two nations have had close ties and have subsequently discovered additional areas of collaboration, including digitalization, agriculture, sustainable energy, e-mobility, smart cities, Industry 4.0, start-ups, etc. India and Germany gain from cooperation across issue areas and both have similar interests and shared values across a wide variety of issues. It is the right time for both to re-define their partnership because, how India and Germany cooperate and collaborate, bilaterally as well as multilaterally, defines their global aspirations and standing.
Magnitude of the visit
This visit was the first standalone visit of a German Chancellor since the biennial inter-governmental consultation (IGC) mechanism was established in 2011. With a total trade of $24.8 billion in 2021-22, Germany has also been among the top 10 trade partners of India and also is the ninth largest foreign investor, with 1,800 companies active in India.
The two nations share a commitment to democracy and human rights. Germany views India as a stabilising influence and anticipates its support in bringing about a peaceful end to the ongoing conflict in Ukraine. At a joint news conference, PM Modi emphasized the need of conversation and diplomacy in resolving the Ukraine situation and declared that India is prepared to support any peace process. In order to more accurately reflect the shifting global political and economic scene, multilateral organisations like the United Nations (UN), World Trade Organization (WTO), and International Monetary Fund (IMF) are strongly supported by both India and Germany. Furthermore, India’s application for the UNSC’s permanent membership may benefit from a good relationship with Germany. The urgency of combating climate change was emphasized during Scholz’s visit, and he committed to making Germany carbon neutral by 2045. India is a significant role in the global fight against climate change, and the two nations have the chance to collaborate on this problem. There is opportunity for increased collaboration in sectors like education and cultural exchange.
Is Asia Pacific a matter of interest for Germany?
A mix of economic, political and strategic issues has led to an upsurge in Germany’s interest in the Indo-Pacific area in recent years. The Indo-Pacific area has some of the fastest-growing economies in the world, and it is a big market for German exports. German firms find the Indo-Pacific region to be a desirable location as a result of Germany’s desire to diversify its trade links and lessen its reliance on traditional markets in Europe and North America. As a significant hub for international trade and the site of geopolitical rivalry between powerful nations like China and the United States, the Indo-Pacific area has strategic significance for Germany as well.
Germany is attempting to enlarge its regional influence and advance an international system of norms that serves its interests. Moreover, the Indo-Pacific region’s security concerns, such as marine safety and the likelihood of violence are a concern. Germany is looking into methods to support regional security efforts since it is interested in fostering stability and security in the area. Sea level rise and more frequent and severe weather events are two effects of climate change that the Indo-Pacific area is particularly susceptible to. Germany wants to support regional sustainable development and help with global efforts to combat climate change.
Enhancing a symbiotic relationship
Following a year of rekindled cooperation between Germany and India, the Chancellor’s visit takes place. Expanding collaboration in the fields of trade, defense, clean energy, climate change, and innovative technology was the main topic of bilateral discussions. No joint statement was issued during the state visit. Instead, the two countries released a common paper titled “India-Germany Vision to Enhance Cooperation in Innovation and Technology”, which focused on scientific and economic collaboration. India’s greatest trading partner in the EU and one of its top ten international trading relationships is Germany. Also, it is among the biggest foreign direct investors in India with cumulative foreign direct investment inflows of $13.8 billion from April 2000 to September 2022, Germany ranks eighth among investors in India. They signed a series of bilateral agreements focused on sustainable development under which India will receive $10.5 billion in aid by 2030 to boost the use of clean energy.
Due to the “Made in India” and “Aatmanirbhar Bharat” campaigns, Germany expressed interest in the prospects that were opening up in various industries of India. A business delegation led by the CEOs of 12 significant businesses, including Siemens and SAP, as well as the presidents of the small- and medium-sized business associations in Germany, accompanied Scholz. Business representatives from Germany and India met successfully and signed numerous significant deals. The German chancellor announced that the next meeting of the Asia Pacific Conference of German business would be held in India in 2024. There was also a focus on cooperation on green hydrogen with a letter of intent signed between the Department of Science & Technology and Fraunhofer Institute for Solar Energy System. Besides, two other commercial agreements between private organisations were signed in the renewable energy sector. Industry sages from both nations provided critical advice on issues like supply chain diversification, FinTech, IT, and digital transformation.
Under the Triangle Development Cooperation, India and Germany are working together more frequently to advance third-world nations. The people-to-people ties have also become stronger over the past few years. Additionally, the Migration and Mobility Partnership Agreement, which was inked in December 2022, will strengthen this cooperation even more. Both nations are enhancing collaboration in the areas of climate action and sustainable development goals through the Green and Sustainable Development Partnership, which was first announced in 2022. There is active collaboration between India and Germany in the battle against terrorism and separatism. The need for coordinated action to put an end to cross-border terrorism was also acknowledged by both nations.
Germany had recognized India as a strategic partner in the Indo-Pacific region especially when the region is gaining importance in the geopolitics of the globe. The India-Germany partnership has the potential to resolve global issues like food security, energy, defense security, and green development. India is presiding over the G20 and this provides a chance to work together and coordinate the efforts. The India-Germany partnership in green development and tackling climate change is crucial to fulfilling sustainable development goals. Clearly, the likelihood of any vision becoming realised hinges tightly on the efforts and commitment of all stakeholders. As each of these stakeholders—corporations, entrepreneurial companies, government, CSOs, citizens— step forward to take their part & help to light the path ahead.
*Editor, Focus Global Reporter
