German Chancellor Olaf Scholz is pressing for speed in the negotiations for a free trade agreement between the European Union and India.
At the start of his visit to New Delhi, he called during a business conference for “swift progress and a rapid conclusion” to the talks, which began back in 2007.
“I am sure that if we work on this together, prime minister, this could happen in months rather than years,” he said on Friday, addressing India’s Narendra Modi.
The negotiations were frozen in 2013 and resumed in 2022. Stumbling blocks include high Indian tariffs on cars, the protection of intellectual property in the pharmaceutical sector and market access in agriculture, which is primarily a concern for India.
Third visit to India by Scholz
Scholz is visiting India for the third time in his nearly three-year tenure. The occasion is the seventh German-Indian government consultations, with four ministers from his Cabinet participating.
Scholz emphasized that military cooperation with India is also a focus. Currently, ThyssenKrupp Marine Systems is negotiating the construction of six submarines for the Indian Navy.
A German frigate and a supply ship are currently near the Indian coast to participate in a joint manoeuvre. On Saturday, Scholz plans to visit the soldiers in the western Indian state of Goa.
“Our overall message is clear: We need more cooperation, not less,” said Scholz.
With an eye on India’s powerful neighbour to the north, China, he reiterated: “We must avoid one-sided dependencies, particularly in areas of strategic importance – critical raw materials and certain technologies, for instance.”
Modi seeking to attract investment to India
Modi advocated for foreign investment in his country. Growth opportunities exist in areas such as climate-friendly produced hydrogen and semiconductors.
India offers an excellent platform for investment in these sectors, said Modi. India is also strong in artificial intelligence (AI), he said.
There are endless possibilities for start-ups and a substantial expansion of infrastructure, he said, citing the examples of the railway network, which is being expanded, and new airports being built.
Habeck calls for “a new beginning” in free trade
German Economy Minister Robert Habeck, speaking before Scholz, recalled the drastic impacts of climate change and named the fight against it as one of the areas where Germany and India can collaborate.
Economically, India is one of the most dynamic regions in the world, with a rapidly growing middle class and important trade routes and ports, Habeck said. A trade agreement between the EU and India is indispensable, he added. “Let’s make a new start now,” he urged, referring to the long-standing negotiations.
Indian trade minister highlights vast market
Indian Trade Minister Piyush Goyal emphasized the opportunities for stronger economic cooperation. India offers a vast market with 1.4 billion people, with an average age of under 30 years, Goyal said.
As a democratic country, India can also offer investors security and the rule of law, he added. Germany has technologies, ideas and innovations, but also high production costs, Goyal said.
India can provide a platform to utilize these technologies, Goyal said. For the trade negotiations, it is important to keep in mind that India wants to catch up economically, protect sensitive areas and negotiate on equal terms – and India is not negotiating from a position of weakness, he stressed.
Modi just returned from Russia
The government consultations planned for Friday afternoon were also expected to address international politics. While India’s close ties to Russia are a thorn in the side of the West, they can also be useful, especially in potential mediation efforts to end the Ukraine war.
Modi again offered this at the recent BRICS summit in the Russian city of Kazan this week. “We fully support the early restoration of peace and stability. All our efforts give priority to humanity. India is ready to provide all possible support in the times to come,” Modia said.
However, Modi’s warm embrace of the host, Russian President Vladimir Putin, in Kazan may not have gone down so well in Ukraine.
