Germany and India are moving closer despite differing positions on Russia, with a series of new agreements signed on Friday.
During government consultations in New Delhi, 27 agreements were signed to expand cooperation in areas such as renewable energy, research and defense.
Chancellor Olaf Scholz also called for skilled workers for the German labor market and urged greater speed in EU negotiations with India on a free trade agreement.
Indian Prime Minister Narendra Modi summarized the state of relations between the two countries in German with the succinct sentence: “Everything is done, everything is good,” which is the equivalent of “It’s all good.”
Several ministers from both sides participated in the seventh government meeting between the two nations. The German government organizes such summits with particularly close or important partners.
Scholz visited India for the third time in his almost three-year tenure.
Hug with Putin – Handshake with Scholz
Modi recently returned from a trip to Russia on Thursday, where he again warmly embraced Russian President Vladimir Putin during the BRICS summit in the city of Kazan.
Scholz did not receive such a warm embrace in New Delhi, but only received a handshake. However, the Chancellor did receive warm words. Modi said Scholz had infused relations with momentum and new energy. The partnership between the world’s two major democracies must be further modernized and strengthened, he said.
With more than 1.4 billion inhabitants, India is the most populous country and the fifth largest economy in the world.
Scholz stated that there is “a lot of potential” in trade with the South Asian country and for investments.
When recruiting skilled workers, the aim is to inspire even more people from the healthcare, healthcare or IT sectors to come to Germany. The German cabinet last week approved a 30-point plan to ease immigration.
Modi offers to contribute to peace in Ukraine
Even on Russia’s war against Ukraine, both sides are now trying to see the disagreements as an opportunity.
Germany stands firmly behind Ukraine and supplies the country with a significant amount of weapons. India, on the other hand, remains neutral, as it is closely tied to Russia economically and militarily, and has not condemned Russia’s attack on Ukraine in the UN General Assembly, unlike the vast majority of states.
However, India’s equally good relations with Moscow and the West could now make it a mediator in the diplomatic efforts to end the war.
“India has always maintained that problems cannot be solved by war,” Modi said after his conversation with Scholz. “India is ready to contribute whatever it takes to restore peace.”
EU-India Free Trade Agreement “within months instead of years”
The most critical economic policy topic in New Delhi has been the EU-India Free Trade Agreement talks, which started seventeen years ago but have not been successful so far.
Scholz called for “rapid progress and a speedy conclusion” of the talks, which began in 2007.
“I am confident that if we work on this together, Prime Minister, this can happen in months instead of years,” he told Modi.
Economy Minister Robert Habeck also commented on the negotiations in New Delhi: “Let’s make a new start now.” He had already floated the idea the day before of initially agreeing on a limited deal.
Negotiations were frozen in 2013 and resumed in 2022. Stumbling blocks include high Indian tariffs on cars, intellectual property protection in the pharmaceutical sector and market access in agriculture, which is a particular concern for India.
Submarine deal negotiations
Russia is also involved in military cooperation. The Indian Armed Forces currently mainly source their military equipment from there. Germany would like to change that.
ThyssenKrupp Marine Systems is currently negotiating the construction of six submarines for the Indian Navy. The German armed forces, the Bundeswehr, also maintain close contacts with the Indian Navy.
A German frigate and a supply ship are currently near the Indian coast taking part in a joint maneuver. On Saturday, Scholz plans to visit soldiers in the western Indian state of Goa.
“Our overall message is clear: we need more cooperation, not less,” Scholz said.
Focusing on India’s powerful neighbor to the north, China, he reiterated: “We must avoid one-sided dependence, especially in areas of strategic importance – crucial raw materials and certain technologies, for example.”
Modi is trying to attract investments to India
Modi advocated foreign investment in his country, where growth opportunities exist in areas such as climate-friendly hydrogen production and semiconductors.
India provides an excellent platform for investments in these sectors, Modi said. India is also strong in artificial intelligence (AI), he said.
There are endless opportunities for start-ups and substantial infrastructure expansion, he said, citing the examples of the rail network being expanded and the construction of new airports.
One of the agreements signed by Germany and India was a security agreement that allowed for the exchange of sensitive information on a larger scale than before, German government sources said.
Such agreements provide a framework for the exchange of confidential information between authorities and companies in participating countries. Depending on their design, they could enable stronger cooperation in areas such as security policy or defense technology.
