Prime Minister Narendra Modi’s tour to Europe comes amidst of
tectonic shifts in global order. Rapid geopolitical convulsions are forcing
nations to rise their level of engagement to restore balance of power. India, a
responsible middle order power, responding to new transformational alliance
reconfigurations is taking one step at a time to position itself in the changing
global scenario. Brandishing “America First” agenda, embracing protectionism,
President Trump by pulling off from TPP (Trans-Pacific Partnership) created a
vacuum. While his friendly overtures to Sunni-Alliance perplexed strategic
experts, deranged remarks at the recently concluded NATO meeting deepened
trans-Atlantic rifts.
Further, Trump’s drifting perceptions towards Russia as
opposed to Germany’s uncompromising stance have sharpened the differences. Trump’s
outlandish expositions on US-Germany trade surpluses at the recent G-7 summit
further frayed the relationship. German Chancellor Angela Merkel, in a press conference
responding to queries of NATO and G-7 summit remarked that “the times in which we would depend on others
are on the way out” hinting at wider rift between European countries and
the US. Clearly, European countries are miffed by Trump’s dogged reminder that
NATO countries must pay up their fair share of defense spending. Trump’s rather
uncharitable remarks and unpredictability has accelerated America’s transition
from an “indispensable nation” to a great power. At the same time, China’s
hegemonic rise, contemptuous disregard for international laws and the shrouded
BRI touted as a phenomenal global infrastructure initiative is raising serious
doubts about its real intentions. A declining American leadership muddied in
uncertainty and obscure investment treaties of China created strains in the
existing global order.
India afflicted by American inconsistencies in visa regimes
and severely encumbered by the BRI is keen on fostering relations with middle
order countries. Furthering this new approach, India in collaboration with
Japan has kick started “Freedom Corridor” initiative for connecting Indo-Pacific
region with Africa.
European nations frayed by Britain’s divorce from EU and
battling the tides of Euroscepticism are showing signs of stabilization. Besides
both Europe and India are severely threatened by the venomous cult of
radicalization and extremism. Needless to say, Modi sought active cooperation
of Europe in Counter-terrorism. President Trump’s indecision and plausible
withdrawal from Paris Climate Accord has prompted Germany to pivot to
Asia. While it might be too early to
draw conclusions on Germany’s drift to Asia since Europe accords high weightage
to trans-Atlantic relations. Merkel’s outburst and preference to free trade
deals will eventually augur well for India, keen on joining hands with
technologically advanced country like Germany. Hence, Prime Minister’s Europe
tour assumes greater significance.
Fresh from the celebrations commemorating three years of
completion of office, Modi embarked on a six-day four nation Europe visit which
include- Germany, Spain, Russia and France in order. Flagging off the tour,
Modi first landed in Berlin where he was extended an official welcome with
military honors at the Chancellery. Later Modi held bilateral talks with German
Chancellor Angela Merkel at country retreat Schloss Meseberg under the frame
work of India-Germany bi-annual Intergovernmental Consultations (IGC). The last
IGC was held in October 2015.
India was one of the first few countries to acknowledge the
Federal Republic of Germany after the World War II in 1945. Both countries
established economic relations in 1951. Bilateral relations picked up momentum
after the economic reforms in 1991. In 2000, both countries elevated relations
to strategic cooperation and enacted the “Indo-German Agenda for the 21st
Century”. Ever since both sides intensified bilateral cooperation and pace of
engagement was significantly enhanced through high level diplomatic visits.
Defence cooperation agreement was signed in 2006. In 2007 both sides signed “Joint Statement on
the Further Development of Strategic and Global Partnership between Germany and
India” and the strategic partnership was strengthened by the IGCs which
basically identified new areas of cooperation. Other than China and Israel,
India is the only country outside EU with which Germany has close partnership. Besides
India and Germany are now closely working together on the UNSC expansion
through the G-4 framework and on other global issues like sustainable
development, climate change along the sidelines of G-20. Also, Indian States
and German provinces also enjoy tantalizing sister-cities relationships.
Germany is India’s largest trade partner in EU with bilateral
trade volume of $17.42 billion. Being a strong economic partner, Germany took
keen interest in India’s flagship initiatives likes Make In India, Digital
India and Skill India. In April 2015, India delegation under the leadership of
Modi attended as a partner country to the Hannover Messe trade exhibition
promoting the Make in India initiative.
In return, Germany Embassy launched the Make in India Mittelstand (MIIM)
in September 2015, to facilitate the entry and investment Small and Medium
Enterprises (SME)s of Mittelstand in India. Of the 73 companies that were
facilitated through MIIM, 43 companies have made good progress. As of now
Germany with $9.7 billion is the seventh largest foreign direct investor in
India while Indian investments in Germany account for $7 billion. Over 200
Indian companies are operating in Germany. Both countries signed
Intergovernmental Science and Technology Cooperation Agreements in 1974.
Currently there are over 150 joint S&T research projects. Till now ISRO has
launched 10 German satellites. Another important area of cooperation is
developmental cooperation, wherein Germany has offered both technical and
financial assistance to India. At the 3rd IGC, both countries signed
the Indo-German Solar Energy Partnership with Germany extending a concessional
loan of $1 billion over next 5 years. Phenomenal contribution of the
scholarly works of Max Mueller who translated Rig Veda and Upanishads laid a
strong foundation towards deepening Indo-German cultural ties.
India and Germany which are on same page with regards to restoring
peace and stability in Afghanistan, expansion of UNSC both permanent and
non-permanent memberships, freedom of navigation and right to passage, have
condemned terrorism in all manifestations called for finalization and adoption
of Comprehensive Convention on International Terrorism (CCIT). At the fourth
IGC, both countries signed 12 pacts on disaster management, cyber security,
skill development, sustainable urban development, vocational education and
training, health, alternative medicine, cooperation in solar technologies etc.
India and Germany agreed to deepen trade relations by
resuming negotiations on the India-EU Broad Based trade and Investment
Agreement (BITA) for mutual protection of new investments. Indo-German BITA has
elapsed in March. It is one of 23 BIT agreements India has with EU countries. A
swift conclusion of India-EU FTA can give needed impetus for investments. Both
countries are keen on enhancing cooperation in defence manufacturing and
maritime cooperation for development of blue economy. Modi has personally
pledged India’s unstinted commitment towards climate change and reiterated that
jeopardizing nature is against Indian heritage. India promised to support
Merkel on climate goals at the upcoming G-20 summit at Hamburg. Underlining the
prominence of Indo-German bilateral ties, Modi described Germany as a reliable
partner in India’s development. He added, “the
pace of development of our relations is fast, the direction is positive and
destination is clear. Germany will always find India as a powerful, prepared
and capable partner.” Modi later addressed the Indo-German Business Summit
highlighting the huge untapped potential of the bilateral economic partnership.
Prime Minister called upon German President Frank-Walter Steinmeier at Bellevue
Palace Berlin.
It must be recalled that Germany has a very deep economic
relationship with China with volumes of trade 10 times higher than India. By
consequence, Germany favors China over India but the relationship developed few
glitches owing to China’s expansionist tendencies and predatory economic
practices. Though China overtly advocates free trade regime, a cautionary and
rather reserved approach towards foreign investments and access is making
European nations suspicious. Hence the tide seems to be shifting to India which
is reaching out to nations with free trade practices. But India certainly needs
to work hard to walk the talk to eventually realize true potential of the
Indo-German relations. Close on heels, China’s Premier Li Keqiang will be in
Germany on Wednesday to re-engage with European countries. Beijing has already
made significant forays into Europe with its Railway connections and is well
placed to nudge European nations into Free Trade Agreement, an issue which
India reluctantly prolonged. But unlike
China, India religiously abides by the democratic values and judiciously adheres
to International laws and negotiates trade deals with transparency. India
certainly have an advantage in the International realms for its democratic credentials.
New Delhi must channelize this pragmatic outlook to its advantage in engaging
with Germany, the most powerful nation of EU.
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