India and Germany Relations

In several sectors, India-German relations expanded their connection beyond the ‘economic and development cooperation lens.’ Defence and strategic collaboration have become vital, and a conversation has started on the subject. After the Second World War, India was the first country to have diplomatic relations with Germany. Globally, as well as  Bilaterally, Germany is one of India’s most important partners. These countries enjoy the cooperation of one another on many fronts and thus are strong allies.

Economic Relations:

In terms of India-Germany trade relations, Germany was India’s top European commercial partner in 2017-18, valued at US$ 21.98 billion.

• In 2017, India was placed 26th in Germany’s global trade ranks
• Germany is the 7th biggest foreign investor in India, investing $11.7 billion between 2000 and 2019. However, the worldwide economic circumstances have caused a decline since 2019
• Trade has also been made smoother with the help of a fast track delivery system between the two countries
• India and Germany entered into an agreement wherein the entry of Indian companies in Germany was made easier and better
• Germany’s assistance and support will be essential for programs like “Make in India” and “Atma Nirbhar Bharat” Abhiyan
• Both parties worked together on WTO changes, especially the Dispute Settlement Mechanism and the global economic crisis caused by trade conflicts
• India is in talks with the EU and Britain on business and the Bilateral Investment Treaty

Technology and Sustainable Development cooperation:

It is commonly known that Germany is a technical giant, and Indo-German cooperation will benefit both countries.

• In India-Germany relations, India dominated software while Germany dominated hardware
• The two countries can work together to make value chains more efficient, tackle governance concerns using technology, and efficiently expand areas of the economy
• In 1956, an agreement was signed between the countries for an increase in technological cooperation. Under this, Germany helped India set up the Indian Institute of Technology, Madras
• Both countries signed an Intergovernmental S&T Agreement in 1971 and later in 1974, wherein scientific and technological cooperation was encouraged
• More than 150 joint S&T projects, along with over 70 collaborations, have taken place directly across universities between Germany and India
• In 2008, the Indo-German Science and Technology Centre was established in Gurugram, with each country contributing $1 million
• The two countries have also formed a High Technology Partnership Group to explore prospects in high-tech manufacturing under the ‘Make in India’ concept
• A $1.12 billion in German investment was made to promote eco-friendly initiatives in India

 Defence/ India Germany strategic relationship:

Though signing a ‘Strategic Partnership’ Agreement, the two sides’ collaboration in military and strategic cooperation has yet to reach its full potential.

• Signed in 2006, the India-Germany Defence Cooperation Agreement now includes exporting weapons and advanced defence technologies to India
• Not only this, an Arrangement on the Implementation of the Agreement in 2006 was signed in 2019, in continuation of the cooperation
• There are annual High Defence Committee meetings that ensure dialogue
• About thirty to forty projects each year are approved in these Committee meetings
• In 2017, both Germany and India agreed to work together towards Counter-Terrorism
• Both countries are involved in reforming global organisations, including the UN Security Council and the WHO
• In terms of the UNSC, both Germany and India are part of the G-4 grouping hoping to acquire permanent membership and reform the council’s composition and operation

Cultural Relations:

More than 15,000 Indian students study in Germany, while 800 German students study in India.

• An Indo-German higher education collaboration was also agreed upon to enhance the number of Indian students studying in India
• The German language is popular in India. Thus, the German government established Max Mueller Bhavans to teach it
• India is known to be one of the countries with the greatest number of Goethe Institutes
• Both parties agreed in 2015 to teach Indian languages in Germany
• The Berlin Film Festival screens Indian artists and movies on a regular basis

Conclusion

India and Germany are considered to be strong allies. They share a good relationship on many fronts. Both countries help facilitate easy and quick trade for the other. There is the promotion of technology to ally countries in the form of investments as well as cooperation. Germany and India also have had strong defence ties since they signed the Defence Cooperation Agreement in 2006. India is now one of the world’s fastest-growing economies, while Germany is the largest in Europe. So both nations should keep working together on global development issues. On the cultural front as well, both countries welcome each other. Learning Germany’s language and culture are promoted in Indian educational institutions and vice versa. Student exchange programs take place frequently in schools and universities for better relations.

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