Building Bridges: How Germany and India Are Redefining Their Relationship

This week German Chancellor Olaf Scholz traveled to New Delhi to meet with Indian Prime Minister Narendra Modi to discuss strengthening the partnership between the two nations. While these two countries have not been particularly close in the past, recent global changes have pushed for a growing bond between the two. In fact, earlier this month Germany unveiled the “Focus on India” strategy working to increase the partnership and cooperation with India, deemed a critical player in the Indo-Pacific. This strategy demonstrates how important Germany believes relations with India to be and highlights the increasing global influence the south asian country holds on the world stage. The two countries discussed strengthening military ties, cooperation in renewable energy, and increasing trade partnership. However, most notably, this meeting highlights a push for a shift in the geopolitical sphere. The west is seeking out this partnership in order to limit its economic dependence on China. Meanwhile India is working to strengthen its defense capabilities outside of Russia. 

The topic of defense is becoming increasingly critical as the world continues to see numerous conflicts. Germany and Europe are particularly concerned about the continuing war in Ukraine. India, who has a long diplomatic history and dependence on Russia for arms and oil, has avoided condemning Russia throughout the war, much to the West’s frustration. Germany, as one of Ukraine’s biggest allies in the world, wanted to ensure that India continued to work towards peace between the two nations. Therefore, the push for strengthening the military is two fold. Germany hopes that with India less dependent on Russia for arms then perhaps it will bring India closer to the west. However, India has a long history of relations with Russia making it unlikely that relations will be severed in the near future. Additionally, India has proven that it will not always act in alliance with the West's policies,  but rather on its own accord. Therefore it remains unclear whether the increased defense cooperation will sway India one way or another or if they will continue to walk their fine line of diplomacy. 

Furthermore, Germany has increased the number of visas for skilled Indian workers and students, prompting more flow of people between the two nations. The countries also discussed cooperation in transitioning towards renewable energy sources. Yet one thing that Chancellor Schulz was a big proponent of during these discussions was the swift approval of an India-EU free trade agreement. Schulz believes that the free trade agreement will be incredibly beneficial for both parties. The EU is India’s third largest trade partner and offers tremendous potential for economic growth. This agreement will also help to decrease the EU’s reliance on China economically. 

However, there are some barriers to this agreement. On India’s side, Indian Commerce Minister Piyush Goyal believes the trade agreement can be highly beneficial but there must be a respect for “sensitivities” and if these “sensitivities” are met, then there can be a swift approval of the trade agreement. Meanwhile on the EU side, German Minister Robert HaBeck said that the agricultural sector was a very challenging area in these negotiations, given the discrepancies in the amount of laborers in this sector in Germany compared to India. Both sides keep expressing optimism and hope for the trade agreement, but negotiations that were set to conclude in 2023 have continued to drag on into 2024. Therefore, despite the optimism from both sides, an FTA does not appear likely anytime soon.

Germany and India’s push for closer relations highlights the new shift in global dynamics. As the Indo-Pacific becomes increasingly important, Western countries have begun to focus more attention. India has emerged as a viable alternative as Europe and the West look for ways to decrease China’s economic influence. On the flip side, as India rises on the global world stage, it can further leverage these global partnerships to continue its development. As these two unlikely partners deepen their relationship, only time will tell how this will impact the global geopolitical sphere.