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India-Germany relations

5th May, 2022

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Context

  • Prime Minister Narendra Modi’s visit to Berlin for the sixth Indo-German Inter-Governmental Consultations (IGC) is significant for its timing and substantial results. Chancellor Olaf Scholz, despite the shock of the Ukrainecrisis, recently visited Japan and then hosted PM Modi.

 

Background

  • There is no formal strategic cooperation between Germany and India.
  • It's a green alliance built on trade, investment, technology, functional collaboration, talent development, and long-term sustainability.
  • The Indo-German energy conference, the environmental forum, the collaboration on urban transportation, skill development, and science and technology are just a few of the efforts.

 

Highlights

  • The Joint Declaration of Intent (JDI) creating the Green and Sustainable Development Partnership was the most significant outcome of the IGC.
  • This will improve the quality and scope of the two nations' current collaboration.
  • Germany is extending a fresh and extra €10 billion loan to India to develop green projects in the public, private, and public-private partnership (PPP) forms.
  • This twice-yearly ministerial meeting will examine all relationships and give "high-level coordination and political direction to the Partnership."
  • The IGC is India's sole such format with any other country. This document reflects India's whole government's commitment to the climate agenda and support for the SDGs.
  • The JDI on Triangular Development Cooperation for projects in third countries is another noteworthy development.
  • This will open up opportunities for collaboration in the Indo-Pacific, Africa, and beyond.

 

Conclusion

  • A reorientation of Germany's relationship with India was expected with the new coalition government: it was highlighted in their coalition compact. Its strength and direction were unknown.
  • Angela Merkel's tenure, which began with India in 2011 and spanned five editions, has come to an end.
  • In light of crises such as the pandemic, the economic crisis, and now, Ukraine, a new time is reflecting new objectives.
  • As indicated by the IGC, Germany's attitude to India has been positive.
  • It is fair to say that this is a watershed point in the Indo-German relationship for both parties.

 

https://www.pib.gov.in/PressReleasePage.aspx?PRID=1822324