India-Germany relations

India-Germany relations

GS-2: I R

(IAS/UPPCS)

Relevant for Prelims:

MP5 Submachine Gun, National Security Guard (NSG), NATO (North Atlantic Treaty Organization), International Solar Alliance (ISA), Indo-German Energy Forum (IGEF).

Relevant for Mains:

India-Germany multi-dimensional relations, importance of Indo-Pacific region, Germany and Indo-Pacific, Way forward, Conclusion.

29/04/2024

Source: TH

Why in news:

Recently, Germany has given license to India to purchase small weapons from German companies.

  • According to diplomatic sources, Germany has allowed the National Security Guard (NSG) to procure spare parts and accessories for the MP5 submachine guns in its inventory.

About India-Germany relations:

Diplomatic relations:

  • Germany is one of India's most important partners in Europe.
  • India was among the first countries to establish diplomatic relations with the Federal Republic of Germany after World War II.

Strategic partnership:

  • India and Germany have a 'Strategic Partnership' since May 2000, which was further strengthened with the launch of Intergovernmental Consultations (IGC) at the level of Heads of Government in 2011. Which allows a comprehensive review of cooperation and identification of new areas of engagement.

High level talks:

  • There are regular high-level contacts between India and Germany. The Prime Minister and Chancellor meet regularly for bilateral meetings and on the sidelines of multilateral meetings.
  • India is one of the select group of countries with which Germany has such a dialogue mechanism.

Multilateral Collaboration:

  • Germany and India support each other on UNSC reforms within the framework of the G4.
  • Germany joined the Coalition for Disaster Resilient Infrastructure (CDRI) in February 2020 and participated in the first Governing Council meeting in March 2020.
  • In April 2021, the German Federal Cabinet approved the signing of the revised framework agreement of the International Solar Alliance (ISA), confirming Germany's joining.

Economic and Commercial Relations:

  • Germany is currently India's 12th largest trading partner in 2022-23.
  • It was India's 11th largest trading partner in 2021-22 and 7th largest trading partner in 2020-21.
  • ndia's share in Germany's total foreign trade in 2022 was about 1%.
  • Major Indian exports to Germany include electrical products and automobile/auto components, textiles and garments, chemicals, pharma, metals/metal products, food/beverages and tobacco and leather/leather goods.
  • Major exports to India include machinery automobiles/auto components, chemicals, data processing equipment and electric equipment.
  • Germany is the 9th largest foreign direct investor in India (8th largest in 2021-22) with cumulative FDI of US$14.1 billion in India from April 2000 to March 2023.

Bilateral Cooperation:

  • Important bilateral agreements between India and Germany are the Agreement on Double Taxation Avoidance (DTAA), which came into force in 1996, and the Comprehensive Agreement on Social Security, which came into force in May 2017.
  • Indo-German Energy Forum (IGEF) is promoting cooperation in the priority areas of energy security, energy efficiency, renewable energy, investment in energy projects and cooperation in research and development, keeping in mind the environmental challenges of sustainable development.

Science Technology:

  • Bilateral science and technology cooperation is implemented under an Intergovernmental Agreement on 'Cooperation in Scientific Research and Technological Development' signed in 1974.
  • The Indo-German Committee on S&T established in 1994 coordinates implementation and reviews joint activities.

Culture:

  • The long-standing cultural ties between India and Germany have been strengthened by cultural and intellectual exchanges between the two countries. The study of Indian literature, especially the Vedas and Upanishads, and the translation of famous works from Sanskrit into German contributed significantly to the better understanding of India.
  • The visits of Nobel laureate Gurudev Rabindranath Tagore to Germany in 1921, 1926 and 1930 promoted cultural and intellectual exchange between India and Germany, which was also supported by established networks in the socio-cultural fields.

Indian diaspora:

  • There are approximately 2.20 lakh (December 2022) Indian passport holders and people of Indian origin in Germany.
  • There has been a significant increase in the number of qualified and highly skilled Indian professionals in sectors like IT, banking, finance etc.

Defence:

  • Germany has significantly simplified licensing requirements for sales of military equipment to India.
  • Germany gave license of small arms to India. Which is a huge exception.
  • Germany has for some time prohibited the sale of small arms to third countries except EU member states, NATO (North Atlantic Treaty Organization) countries and NATO-counterpart countries (Australia, Japan, New Zealand and Switzerland).
  • The German government has also simplified the approval process for defense purchases by India.
  • India has an inventory of MP5 submachine guns manufactured by Heckler & Koch.
  • Germany has also approved the offer of a tank engine and propulsion system for India's indigenous light tank project.
  • In August 2024, the Indian Air Force (IAF) is scheduled to conduct multilateral exercise Tarang Shakti, which will involve the German Air Force along with other countries like the UK, France and Spain.

Significance of the Indo-Pacific Region:

  • The Indo-Pacific (with India at its centre) is becoming increasingly important in the foreign policy of Germany and the European Union.
  • The Indo-Pacific region is home to approximately 65% of the global population and is home to 20 of the world's 33 megacities.
  • The region accounts for 62% of global GDP and 46% of global merchandise trade.
  • The region is also the origin of more than half of total global carbon emissions, making countries in the region natural key players in addressing global challenges such as climate change and sustainable energy production and consumption.

Germany and the Indo-Pacific:

  • Germany is committed to its contribution in strengthening the rules-based international order.
  • India has been mentioned for enhancing engagement and fulfilling the objectives under Germany's Indo-Pacific guidelines. India can now become an important nexus or node in the discussion on issues related to international security.
  • Since India is a maritime superpower and a vocal supporter of free and inclusive trade, it is a primary partner of Germany (ultimately the EU) in this mission.
  • Way forward:
  • Strengthening India-Germany relations:
  • • Germany sees India as an important partner in addressing various global issues including climate change, food security, energy and international peace and security.
  • • Along with this, the new coalition government that has come to power in Germany is providing an opportunity for India to strengthen the strategic partnership between the two countries.
  • Germany is keen to implement connectivity projects through the EU to counter China. The Alliance desires the conclusion of the ‘India-EU BTIA’ and sees it as an important aspect for the development of relations.

Scope of economic cooperation:

  • India and Germany should realize the cooperative goals of the Intellectual Property Guidelines and also engage businesses.
  • German companies should be encouraged to take advantage of the liberalized production-linked incentive scheme to set up manufacturing bases in India.
  • Germany has committed a loan of 250 million euros to Africa for a vaccine production facility. With India's cooperation such an establishment can be established in the underprivileged East African region.

Sharing of responsibilities in the Indo-Pacific region:

  • Like India, Germany is also a trading nation. More than 20% of German trade takes place in the Indo-Pacific region.
  • That is why Germany and India share the responsibility to maintain and support stability, prosperity and freedom in this part of the world. Both India and Europe have vital interests in supporting a free and open Indo-Pacific.

Conclusion:

  • Bilateral relations between India and Germany have been based on shared democratic principles. India was one of the first countries to establish diplomatic relations with the Federal Republic of Germany after World War II. In this context, India and Germany, as leading democratic countries of the world, need to maintain mutual cooperation to deal with climate change and other global challenges.

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Mains Question:

Discuss the multidimensional relations between India and Germany in the current scenario.