A defining moment for Indo-German ties

by Gurjit Singh 

Gurjit Singh writes: India-Germany joint statement shows congruence and commonality on UN, Afghanistan and terrorism.

Prime Minister Narendra Modi’s visit to Berlin for the sixth Indo-German Inter-Governmental Consultations (IGC) is significant for its timing and substantial results. Chancellor Olaf Scholz, despite the shock of the Ukraine crisis, recently visited Japan and then hosted PM Modi. In public perception, the visit was about adjusting to the Ukraine crisis and whether Germany would try to persuade India to follow its line. The reality differed as both got down to serious business beyond Ukraine.

Germany is a reluctant player in the anti-Russian movement. It criticises Russia for invading Ukraine, which set back Germany’s — and Europe’s — search for strategic autonomy. This broadened their outlook towards neglected partners such as India.

The timing of the IGC, which Germany chose not to delay, showed outreach to India and the Indo-Pacific. This is a necessity, both strategically and economically. The pandemic hit German economy and sanctions on Russia will further dent its prospects. The country requires new markets for trade and investment. India is an important partner in this regard due to its sustained economic growth and market size.

The Ukraine crisis created an urgency to engage with India as part of Germany’s fledgling Indo-Pacific policy. For India, it was important to prevent Germany from being overwhelmed by the Ukraine crisis and bring its focus to the Indo-Pacific. This includes a reassessment of China’s role in world affairs. There are signs that Germany will be doing this and therein lies an opportunity for India. The Bundestag will discuss the situation of Uyghurs in China’s Xinjiang on May 7. Any departures from China will bring business engagement to India.

Germany and India do not have a traditional strategic partnership. It is a green partnership based on trade, investment, technology, functional collaboration, skill development, and sustainability. There are several initiatives like the Indo-German energy forum, environmental forum, partnership on urban mobility, skill development and science and technology.

The biggest gain from the IGC has been the Joint Declaration of Intent (JDI) establishing the Green and Sustainable Development Partnership. This will raise the quality and quantum of the existing partnership between the two countries. Germany is reaching out with new and additional financing of €10 billion to fund green projects in India under public, private and PPP models.

To support this, a ministerial segment is being introduced under the IGC. This biennial ministerial forum will review all the partnerships and provide “high-level coordination and political direction to the Partnership”. This will prevent inertia. At present, partnership fora meet sporadically and the ministers meet for a few hours before the IGC plenary. A coordinated institutional mechanism is being created now. The IGC is the only such format that India has with any country. This presents a whole-of-government outlook and shows India’s commitment to the climate agenda and support for the SDGs.

Another significant development is the JDI on Triangular Development Cooperation for projects in third countries. This will provide avenues to work together in the Indo-Pacific, Africa and beyond. Climate-friendly and SDG related training and projects, possibly drawing upon the successful implementation of similar versions in India, are envisaged.

India and the EU have agreed to restart, in June 2022, discussions on an FTA, an investment agreement. At this IGC, the focus was on harnessing the entrepreneurship and private sector of both countries to take the climate-friendly achievement of SDGs forward. The CEOs who met the leaders had a contemporary mix this time. Besides the large companies, there were newer investors on both sides, particularly from technology, digital, green infrastructure, and renewable energy.

The Indo-German Education Partnership, which the German Bundestag passed in 2016 as a New Passage to India, has borne fruit — from about 4,000 students in 2015, there are nearly 29,000 Indian students in Germany. New IITs like IIT-Indore have engaged with several technical universities in Germany for joint programmes. The Indo-German Science and Technology Centre has made valuable contributions. Now, under the energy partnership, the Green Hydrogen Task Force will develop a Green Hydrogen Roadmap. This will attempt to take R&D to the level of commercialisation.

The JDI on migration and mobility is an important step taken during this IGC. This will facilitate a larger number of Indian students to study and work in Germany. It may facilitate the movement of Indian professionals. This will lead to a larger trade in services and augment the efforts for digital partnerships, which are among the focal points of Indo-German efforts.

The joint statement is long at 56 paragraphs and shows immense congruence and commonality on the UN, Afghanistan and terrorism.

With the new coalition government in Germany, a reorientation of the relationship with India was anticipated: It was mentioned in their coalition compact. Its direction and intensity were uncertain. The period of Angela Merkel, who started the IGC with India in 2011, and saw it through five editions, is over.

A new period is reflecting new priorities in view of crises like the pandemic, the economic downturn and now, Ukraine. The German response to India as evidenced through the IGC has been promising. Both sides may justifiably call it a defining moment in the Indo-German partnership.

This column first appeared in the print edition on May 4, 2022 under the title ‘Amid crisis, a defining moment’. The writer is former ambassador to Germany