German Chancellor Olaf Scholz visited India in February 2023 as part of a two-day state visit intended to boost ties between India and Germany, especially in the fields of clean energy, trade and new technologies. In this article, you can read all about the visit and its significance to India – Germany bilateral relations. This is an important topic for the IAS exam international relations segment.

India – Germany Relations in the Context of Scholz’s Visit

India’s relationship with Germany has traditionally lagged behind compared to its relations with its other European partners such as France. 

• Both countries have neglected each other and Germany’s primary focus on China is the main reason the India-Germany relations have not been very good or in main focus, but the equation is changing rapidly.
• Chancellor Scholz’s two-day visit to India, which began on February 25, 2023, has been, in Mr. Scholz’s own words, a ‘Zeitenwende’ or turning point.

Read more on the bilateral relations between India and Germany in the linked article.

Recent events and changing stances:

• The Russian invasion of Ukraine was a crucial event for Germany’s security policy. It has resulted in shifts from decades of post-war pacifism towards strategic matters. 
• Recently, Germany has also planned to boost defense spending to 2% of GDP. 
• Russia’s war and China’s assertive attitude have triggered a rethink in strategic policy. Germany’s approach of ‘Wandel durch Handel’ (change through trade) has been questioned in these changing times and it has prompted a rethink of its energy and trade dependencies. It is now focusing on diversifying economic relations. 
• The visit will expand cooperation in defence, trade, clean energy, migration, digital transformation, and the Indo-Pacific.
• Discussions on the Russia-Ukraine conflict and its global repercussions were centre stage as the war continued. 
• Prime Minister Narendra Modi has again forwarded India’s commitment towards the peace process.
• This enhanced political outreach to Asia is part of Germany’s overall strategy for the Indo-Pacific region which mentions India as a key partner. 
• The stability of supply chains and trade routes linking Asia to Europe is of critical importance for Germany. Asia is Europe’s economic powerhouse and it relies on its exports.

Defense relations:

• Increasing defense engagement is of mutual benefit for both countries as New Delhi is attempting to diversify its military dependence on Russia and Berlin is reassessing its arms exports policy.
• Co-development of military hardware and tech transfers were discussed.
• A deal worth $5.2 billion where Germany would jointly build six conventional submarines in India is also being discussed.
• The first-ever France-India-Germany military exercise drill is planned to take place in 2024.
• India and Germany also cooperate in multilateral forums. Germany is also pushing for United Nations Security Council reforms.

Trade and technologies: 

• Germany happens to be India’s largest economic partner in the European Union (EU).
• The relaunch of the India-EU free-trade agreement negotiations is also being discussed.
• Cooperation in clean energy and green technologies is also one of the main focuses of engagement. The Green and Sustainable Development Partnership was launched in 2022.
• Cooperation in the area of green hydrogen is also needed for progress in sustainable development goals and climate change cooperation.
• The area of mobility and migration was also one of the priority key areas. As  Germany has a shortage of skilled manpower, technically skilled Indians can help fill the gap.
• Both the countries share a divergent stand on the Russia-Ukraine war but it has not undermined India’s regular political engagements with Europe and convergence in areas such as the Indo-Pacific.
• India has been able to balance and forge the strategic dimension of the partnership. 
• An intensification of the Russia-China axis could further embolden this alignment.
• With changing geopolitical situations and an emerging multipolar world, India’s ties with Germany can prove to be crucial for a new global order.

German Chancellor’s India Visit (2023):- Download PDF Here