Germany and India are moving closer thanks to a series of new deals

Germany and India are moving closer despite their different positions towards Russia: a number of new agreements were signed on Friday.

During government consultations in New Delhi, 27 agreements were signed to expand cooperation in areas such as renewable energy, research and defense.

Chancellor Olaf Scholz also advocated for a skilled workforce in the German labor market and pushed for the EU to speed up negotiations with India on a free trade agreement.

Indian Prime Minister Narendra Modi summed up the state of relations between the two countries in German with the laconic phrase: “Alles klar, alles Gut,” which is the equivalent of “All is well.”

Several ministers from both sides took part in the seventh government consultations between the two countries. The German government organizes such summits with particularly close or important partners.

Scholz visited India for the third time during his nearly three-year tenure.

Hugs with Putin – Handshake with Scholz

Modi returned from a trip to Russia only on Thursday, where he once again warmly embraced Russian President Vladimir Putin during the BRICS summit in the city of Kazan.

Scholz didn’t appreciate the warm embrace in New Delhi and only received a handshake instead. However, the chancellor still received warm words. Modi said Scholz had given the relationship impetus and new energy. According to him, the partnership between the world’s two largest democracies needs to be further modernized and strengthened.

With a population of over 1.4 billion people, India is the most populous country and the fifth largest economy in the world.

Scholz said there was “great potential” for trade and investment with the South Asian country.

When recruiting qualified workers, the goal is to inspire even more people from the healthcare, care or information technology sectors to come to Germany. Last week, the German cabinet approved a 30-point plan to ease immigration.

Modi offers to contribute to peace in Ukraine

Even regarding Russia’s war with Ukraine, both sides are now trying to view differences as an opportunity.

Germany strongly supports Ukraine and supplies it with a significant amount of weapons. India, on the other hand, remains neutral, being closely linked economically and militarily with Russia, and did not condemn Russia’s attack on Ukraine at 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 diplomatic efforts to end the war.

“India has always maintained that problems cannot be solved through war,” Modi said after speaking with Scholz. “India is ready to do whatever it takes to restore peace.”

EU-India free trade deal ‘in months, not years’

The most important economic policy topic in New Delhi has been negotiations on a free trade agreement between the EU and India, which began 17 years ago but have so far failed.

Scholz called for “rapid progress and a quick conclusion” to the negotiations, which began in 2007.

“I am confident that if we work on this together, Prime Minister, it can happen in months, not years,” he said, addressing Modi.

Economy Minister Robert Habeck, also in New Delhi, also commented on the negotiations: “Let’s start all over again.” The day before, he had already floated the idea of ​​an initial limited deal agreement.

Negotiations were frozen in 2013 and resumed in 2022. Stumbling blocks include high Indian tariffs on automobiles, intellectual property protection in the pharmaceutical sector and access to agricultural markets, which are India’s primary concerns.

Submarine deal negotiations

Cooperation in the military sphere also involves Russian participation. Currently, the Indian armed forces receive military equipment primarily from there. Germany would like to help change this.

ThyssenKrupp Marine Systems is currently in negotiations to build six submarines for the Indian Navy. The German armed forces (Bundeswehr) also maintain close contacts with the Indian Navy.

A German frigate and supply ship are currently off the coast of India to participate in a joint maneuver. Scholz plans to visit soldiers in the western Indian state of Goa on Saturday.

“Our overall message is clear: we need more cooperation, not less,” Scholz said.

Looking to India’s powerful northern neighbor China, he reiterated: “We must avoid unilateral dependence, especially in areas of strategic importance – such as critical raw materials and certain technologies.”

Modi seeks to attract investment to India

Modi has championed foreign investment in his country, where growth opportunities exist in areas such as green hydrogen production and semiconductors.

India offers an excellent platform for investment in these sectors, Modi said. India is also strong in the field of artificial intelligence (AI), he said.

“There are endless opportunities for start-ups and significant infrastructure expansion,” he said, citing the expanding rail network and new airports being built as examples.

According to German government sources, one of the agreements signed by Germany and India was a security agreement allowing for the sharing of sensitive information more widely than before.

Such agreements provide a framework for the exchange of confidential information between authorities and companies in participating countries. Depending on their design, they can enable closer cooperation in areas such as security policy or defense technology.