Context: India and Germany celebrate 25 years of strategic partnership rooted in peace, prosperity, people-to-people ties, and sustainable development.
Relevance of the Topic: Mains: India-Germany Strategic Partnership.
With the recent articulation of Germany’s- Focus on India strategy, new German Coalition Treaty, and reaffirmation through high-level political engagements, the partnership is poised to deepen further.
As the 3rd and 4th largest economies in the world respectively, Germany and India share robust economic and developmental partnership, essentially standing on four pillars- peace, prosperity, people and the future of our planet.
India-Germany Bilateral Relations:
Multilateral Cooperation:
- Both countries exchange views in multilateral fora including G20 and in the UN on global issues such as Climate Change and Sustainable Development.
- Germany and India support each other on UNSC expansion within the framework of the G4.
- Germany is also a part of International Solar Alliance (ISA) and Coalition for Disaster Resilient Infrastructure (CDRI).
Bilateral exchanges: Since 2000, India and Germany have had a 'Strategic Partnership' which has been further strengthened with the launch of Intergovernmental Consultations (IGC) in 2011 at the level of Heads of Government.
Economic Partnership:
- Germany is India’s largest trading partner in the EU, with bilateral trade crossing $25 billion (2022-23), showing strong economic interdependence.
- Collaboration on Infrastructure projects like- Projects like the Delhi-Meerut RRTS, operated by Deutsche Bahn (German National Rail Company). Around 2,000 German companies are active in India, and they create more than 750,000 jobs for Indians.
- In 2022, Under Indo-German Green and Sustainable Development Partnership (GSDP), Germany committed €10 billion in preferential loans and grants for India, over a span of 10 years.
- India-EU Free Trade Agreement could further amplify the economic integration between two major global economies.
Energy Partnership: German technology and investment are supporting large-scale solar and wind energy projects, particularly in states like Gujarat. German private companies are contributing to India’s green infrastructure. E.g., producing rotor blades for wind turbines deployed in India.
Emerging technologies: Joint research in areas such as green hydrogen, AI, biotechnology, and climate tech. Cooperation in the renewable energy sector, biodiversity and smart city projects.
Defence cooperation: Bilateral Defence Cooperation Agreement provides the framework for bilateral defence ties. Joint military exercises like Tarang Shakti Exercise (2024). Mutual Legal Assistance Treaty between India and Germany ensures greater synergy in countering terror by sharing intelligence and coordinating joint operations.
People-to-People Ties: Over 50,000 Indian students study Germany, the largest group of foreign students in German universities.
Enhanced cooperation in the Indo-Pacific, green technologies, and skilled workforce mobility, alongside progress on the India-EU Free Trade Agreement will be critical to advancing the full strategic potential of this bilateral partnership.