Thursday 5 May 2022

India and Germany reorient partnership on congruencies

Modi’s first overseas visit this year to Germany is marked with many firsts. Modi’s first telephonic conversation with any foreign leader this year was with German Chancellor Scholz and this edition of India-Germany Inter Governmental Consultation (ICG) was the first in person meeting between both the leaders. In 2011, India and Germany commenced biennial ICGs. Thus far, Christian Democratic Union (CDU) Coalition led by Angela Merkel headed all the five editions of ICG. The 6th ICG co-chaired by German Chancellor Olaf Scholz of the new coalition government of social democrats, Greens and Free Democrats, had given ICG a renewed reorientation as anticipated. In fact, India and Indo-Pacific found a mention in the tripartite coalition deal reflecting the growing importance of India in German foreign policy1.

In fact, Germany has initiated the ICG invitation during the Ukraine crisis which was delayed from 2021. Delivering Chancellor’s message, his foreign policy and security advisor Jens Plotner arrived in India on March 31st to lay ground for the Indo-German engagement. Poltner, who is effectively the national security advisor said, “While Germany would welcome having India in “our camp” on Ukraine crisis, there is an understanding in Berlin about the challenges and constraints New Delhi is grappling with in a complicated neighbourhood2, straying away from the customary pontification of India. Importing 55% of gas, 42% of oil and coal, Germany’s energy dependence on Russia is a matter of debate in West.

Given then strong dependencies, India and Germany are averse to isolating Russia. Though Germany has sided with the West, it is reluctant to impose sanctions and curb its engagement with Russia. India shares similar predicament as Russian weapons dominate its military. Ukraine crisis jolted Europe. Shedding a nonchalant approach Germany announced plans to beef up defence security. Public perception dominated the view that Germany would persuade Modi to change his stance on Ukraine. Standing his ground, in response to Scholz’s remarks of Russia having violated the UN charter by attacking Ukraine, Modi insisted that dialogue is the only way to resolve the dispute.

Modi said, “We believe that there will be no winning party in this war, everyone will suffer. Oil prices are sky rocketing.. there is also shortage of food grains and fertilisers… but its impact on developing and poor countries will be even more serious3. Baring a parsimonious mention of Ukraine crisis that made up for the sound bites at the press meet and reiteration of Germany’s strong condemnation of “the unlawful and unprovoked aggression against Ukraine by Russian forces” in the Joint Statement4, both countries were on same page on providing humanitarian assistance to Ukraine and cessation of hostilities. Putting rest to debate on G7 invitation to India, Scholz invited Modi for the summit.

Signing of Joint Declaration of Intent (JDI) on Green and Sustainable Development partnership, leaders bestowed a new defining paradigm for Indo-German Strategic Partnership. Germany extended Euro 10 billion till 2030 to fund India’s Green Projects under public, private and PPP ventures. Notably, unlike other countries India displayed fervent conviction towards Climate Action rather than Climate Change and firmly adhered to her climate pledges.

Under the umbrella of Green and Sustainable Development Partnership, countries signed a JDI and laid out Indo-German Green Hydrogen Road map under the auspices of Indo-German Hydrogen Task Force supported by Indo-German Energy Forum (IGEF) launched in 2006. With a focus on innovative solar energies and renewables, countries unveiled Renewable Energy partnership. Germany pledged Euro 1 billion concessional loans for high quality projects. To achieve SDG goals and climate targets, countries signed JDI on agroecology, forest landscape restoration, collaboration on green energy corridors and triangular development cooperation in third countries5.

To cut through the bureaucratic slack, countries have instated a biennial Ministerial mechanism under the ICG to oversee, coordinate and review existing bilateral commitments in the areas of climate action, sustainable development, energy transition, development cooperation, science, technology, space and skill development.

Countries have a panoply of Joint working groups on environment, sustainable urban development, agriculture, food industry and consumer protection that coordinate the joint collaboration in respective fields. Agriculture and food sectors are key to sustainable development and Indo-German Centres of Excellence in Agriculture are working towards upgrading skills of farmers and daily wage workers and eliminating poverty. Strengthening collaboration on risk finance and insurance solutions against climate and disaster risks, India announced joining Germany’s InsuResilience Global Partnership.

EU-China investment talks which took a disastrous turn owing to Chinese sanctions, hit a permanent roadblock following Beijing’s refusal to condemn Russian invasion of Ukraine. Unlike the CDU coalition, the Greens and Democrats who are not enamoured by China, sought to consider Beijing as a systemic rival. On the contrary, Greens perceptive of India’s climate friendly agenda are expressing strong support to India-EU FTA negotiations.

Germany is India’s largest trading partner in the EU. Bilateral trade between the countries grew from Euro 15.96 billion to Euro 20.41 billion in 20186. Prime Minister Modi co-chaired a meeting of Indian and German business leaders along with Chancellor Scholz and discussed way to bolster Indo-German trade and commercial partnership. Germany is seventh largest foreign direct investor in India and German MSEs are steadily increasing investments in India due to India’s sustained and dynamic growth. To expedite the investment process and strengthen start up cooperation, countries have established Indo-German Fast Mechanism and forged cooperation between Start Up India and German Accelerator (GS). To further promote economic cooperation, countries have signed JDI on training of corporate executives.

Giving a massive impetus to two-way mobility of students, countries announced finalisation of negotiations on bilateral agreement on Comprehensive Mobility and Migration partnership. Additionally, countries signed MoUs on safety & insurance of workers and on placement agreement based on the holistic “triple-win approach” where in migration of skilled health workers aims to benefit the host country, country of origin and the migrants themselves and a JDI on encrypted connection between foreign offices. Countries agreed on bilateral exchanges on defence & security issues and to hold regular bilateral Cyber consultations and reconvene the Defence Technology Sub Group (DTSG) meeting.

Rooted in mutual trust, the two democracies share values of rule of law, human rights and multilateral responses to global challenges. Reiterating their faith in multilateralism both countries members of “Group of Four” have committed to intensify efforts towards implementation of long overdue reforms of UNSC. Germany reiterated supported for India’s entry into Nuclear Suppliers Group.

Despite the Ukraine distraction, Chinese transgressions in Indo-Pacific region are keeping nations on tenterhooks. India and Germany share a common view of threat from China to international world order. Beijing’s brazen violations have compelled nations to formulate a formidable Indo-Pacific policy.

Acknowledging the Policy Guidelines for Indo-Pacific of the German Federal Government, the EU Strategy for Cooperation in the Indo-Pacific and the Indo-Pacific Oceans Initiative of India, leaders underscored their commitment to Free and Open Indo-Pacific vision for seamless commerce and freedom of navigation. For the first time in 20 years carrying Berlin’s aspirations of a free and open Indo-Pacific, German Navy Frigate ‘Bayern’ set sail to the region in August 2021. It made a port call in Mumbai in January 20227. Laying foundation for maritime cooperation, Germany intends to welcome Indian Navy ship on a friendly visit to its port next year.

As democracies both countries share many common values including construction of a multipolar world order. Reiterating German’s World view Scholz said, “India is among our very important partners here. The World can only develop well if we are clear as to the fact that future relations in the world will be characterised and marked by many countries, not by few powerful countries8.

Espousing strategic autonomy, despite its neutral stance and repeated abstentions, towing a neutral stance, India extended humanitarian assistance to Ukraine. An assertive India in the face of constant threats from China has proved its mettle as a formidable counter to China. India’s steady and benevolent rise has unequivocally established its credentials as a responsible country in the Indo-Pacific. With a huge demographic dividend, large markets, consistent growth and demography India is now perceived as a credible global partner vis a vis an authoritarian China.

The elements of the new coalition at the helm insistent on values like democracy, environmental pledges, climate action, rules-based order have certainly more in common with India are now reimagining the partnership with India. Scholz’s press statement, “Delighted that the first Inter-Governmental Consultations of this government took place with India government. To me, it’s a sign of special quality of our relationship. India is an important partner of Germany in Asia in economic, security policy and climate-political terms9 vividly encapsulates the mood in Germany. The vast expanse of collaboration across different fields demonstrates that India and Germany are looking forward to a promising partnership.


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