Germany and India are drawing closer together despite differing stances on Russia, with a series of new deals signed on Friday.
During government consultations in New Delhi, 27 agreements were signed to expand cooperation in areas such as renewable energy, research and defence.
Chancellor Olaf Scholz also advocated for skilled workers for the German labour market and pushed for more speed in EU negotiations with India over a free trade agreement.
Indian Prime Minister Narendra Modi summed up the state of relations between the two countries in German with the succinct phrase: “Alles klar, alles gut,” which is the equivalent of “It’s all good.”
Several ministers from both sides participated in the seventh government consultations between the two nations. The German government organizes such summits with particularly close or important partners.
Scholz was visiting India for the third time in his nearly three-year tenure.
Embrace with Putin – Handshake with Scholz
Modi only returned from a trip to Russia on Thursday, where he warmly embraced Russian President Vladimir Putin once again during the BRICS summit in the city of Kazan.
Scholz did not enjoy such a warm embrace in New Delhi, receiving only a handshake instead. However, the chancellor did receive warm words. Modi said that Scholz had infused the relations with momentum and new energy. The partnership between two major democracies of the world 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 “plenty 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 health, care or IT sectors to come to Germany. The German Cabinet approved a 30-point plan last week to facilitate immigration.
Modi offers to contribute to peace in Ukraine
Even regarding Russia’s war on Ukraine, both sides are now trying to view the differences as an opportunity.
Germany stands firmly by Ukraine and is supplying it with a significant quantity of weapons. India, on the other hand, remains neutral, being economically and militarily closely linked to Russia, and did not condemn the Russian 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 through war,” Modi said after his conversation with Scholz. “India is ready to contribute anything to restore peace.”
EU-India free trade agreement “in months rather than years”
The most critical economic policy topic in New Delhi was the talks on the EU-India free trade agreement, which began 17 years ago but have so far been unsuccessful.
Scholz called 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, addressing Modi.
Economy Minister Robert Habeck, also in New Delhi, commented on the negotiations too: “Let’s make a fresh start now.” He had already floated the idea the previous day of initially agreeing on a limited deal.
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.
Negotiations on submarine deal
Cooperation in the military field also involves Russia. The Indian armed forces currently source their military equipment predominantly from there. Germany would like to help change that.
ThyssenKrupp Marine Systems is currently negotiating the construction of six submarines for the Indian Navy. The German armed forces, or Bundeswehr, also maintain close contacts with 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, where 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.
One of the deals Germany and India signed was a security agreement allowing for the exchange of sensitive information more extensively than before, according to German government sources.
Such agreements provide a framework for the exchange of confidential information between authorities and companies in the participating countries. Depending on their design, they can enable stronger collaboration in areas such as security policy or defence technology.
