The Influence of Scholz’s Visit on India – Germany Relations

The relationship between India and Germany has historically been overshadowed by India's ties with other European partners such as France.

• The primary reason for this is Germany's focus on China, which has resulted in both countries overlooking each other. However, this dynamic is currently undergoing a rapid transformation.
• Chancellor Scholz’s state visit to India, which commenced on February 25, 2023, has, according to Mr. Scholz, marked a 'Zeitenwende' or turning point.

Learn more about the bilateral relations between India and Germany in the attached article.

Current affairs and shifting attitudes:

• The Russian invasion of Ukraine has had a profound impact on Germany's security policy, leading to a departure from decades of post-war pacifism towards strategic matters.
• Germany has recently announced plans to increase its defense spending to 2% of its GDP.
• The war in Russia and China's assertive stance have sparked a reassessment of strategic policy. Germany's 'Wandel durch Handel' (change through trade) approach has been called into question, leading to a reevaluation of its energy and trade dependencies. Germany is now shifting its focus towards diversifying its economic relationships.
• The tour is set to broaden collaboration in defense, commerce, clean energy, migration, digital transformation, and the Indo-Pacific region.
• Discussions on the Russia-Ukraine conflict and its worldwide implications took center stage as the war continued.
• Prime Minister Narendra Modi has once again reaffirmed India's commitment to the peace process.
• This heightened political engagement with Asia is a part of Germany's comprehensive strategy for the Indo-Pacific region, which identifies India as a key partner.
• The stability of supply chains and trade routes connecting Asia and Europe is of paramount importance to Germany. Asia is Europe's economic engine, and it relies heavily on its exports.

Defense relations:

• Increased defense engagement is mutually beneficial as New Delhi aims to diversify its military reliance on Russia, and Berlin is reevaluating its arms exports policy.
• The co-development of military hardware and technology transfers was a topic of discussion.
• Discussions are also underway about a $5.2 billion deal for Germany to co-construct six conventional submarines in India.
• The first-ever trilateral military exercise involving France, India, and Germany is scheduled for 2024.
• India and Germany also collaborate in multilateral forums. Germany is pushing for reforms in the United Nations Security Council .

Trade and technologies:

• Germany is India’s largest economic ally in the European Union (EU) .
• The revival of the India-EU free-trade agreement negotiations is also on the table.
• Collaboration in clean energy and green technologies is a key point of engagement. The Green and Sustainable Development Partnership was initiated in 2022.
• Cooperation in the field of green hydrogen is vital for the advancement of sustainable development goals and cooperation on climate change.
• Mobility and migration were also priority areas. Germany is in need of skilled manpower, and technically proficient Indians can help fill this gap.
• Despite differing views on the Russia-Ukraine war, India's regular political engagements with Europe and convergence in areas such as the Indo-Pacific have not been affected.
• India has managed to balance and develop the strategic dimension of the partnership.
• The strengthening of the Russia-China axis could further reinforce this alignment.
• Given the changing geopolitical landscape and the emergence of a multipolar world, India's ties with Germany could play a crucial role in shaping a new global order.