India Germany Partnership

Mains Syllabus: GS II - Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Why in the News?

India and Germany celebrate 25 years of strategic partnership.

What are the pillars of India – Germany relationships?

• Strategic Partnership - Since May 2000, India and Germany have had a 'Strategic Partnership'.
• Economic Partnership - As the 3rd and 4th largest economies in the world respectively, Germany and India share a robust economic and developmental partnership.
• Trade & Commercial Relations - Germany continued to be the 12th largest trading partner for India also in 2023-24.
• While the balance of trade has been in favour of Germany, bilateral trade has experienced continuous growth over the last few years.
• Investment - Germany is the 9th largest foreign direct investor in India with a cumulative FDI in India of US$ 14.5 bn. from April 2000 to December 2023.
• Taxation - The India-Germany Double Taxation Avoidance Agreement (DTAA), established in 1991, has been a vital catalyst in strengthening economic relations.
• Culture - India and Germany have a long-standing history of cultural and intellectual exchange across literature, film, music, academia, yoga and Ayurveda.
• Nobel Laureate Gurudev Rabindranath Tagore is widely credited with first establishing an important cultural bridge between the two countries via his visits to Germany in 1921, 1926, and 1930.
• Indian Diaspora - There are around 2.46 lakh (December 2023) Indian passport holders and Indian-origin people in Germany.

What are the areas of co-operation between India and Germany?

• Energy Co-operation - The Indo-German Energy Forum (IGEF) held at Secretary level has been promoting cooperation in energy sectors.
• During the 6th IGC on 02 May 2022 in Berlin, a Joint Declaration of Intent (JDI) on ‘Indo-German Green Hydrogen Task Force was signed.
• India has also invited Germany to join the Global Biofuels Alliance (GBA), which was launched in September 2023 on the sidelines of India’s G20 presidency.
• Vocational Education - Germany is one of India’s important partners in vocational education & training.
• Agriculture - In agriculture, India and Germany are currently working in the areas of strengthening post-harvest infrastructure including setting up cold chain agricultural mechanisation, livestock breeding and others.
• Development Cooperation - Germany currently provides bilateral assistance in the form of technical and financial assistance in the areas of energy, environment and management of natural resources and sustainable urban development.
• The total volume of bilateral technical and financial cooperation by the end of 2023 amounted to about Euro 24 billion.
• Railways - India and Germany have had long-standing cooperation in the field of railways.
• German company Siemens is supporting the sustainable transformation of India’s transportation sector as India seeks to almost double freight capacity on its railway.
• Defence Cooperation - Bilateral Defence Cooperation Agreement signed in September 2006 provides the framework for bilateral defence ties.
• Science & Tech - In 2024, India and Germany are celebrating the 50th anniversary of IndoGerman S&T cooperation, that began in May 1974 under an Inter-Governmental Agreement on ‘Cooperation in Scientific Research and Technological Development.
• Migration & Mobility - The Migration and Mobility Partnership Agreement (MMPA) concluded in December, 2022 provides broad policy direction to the migration cooperation.
• Social Security Agreement - India and Germany signed the Comprehensive Social Security Agreement (SSA) in 2017 to simplify social security contributions for workers who are posted or detached from their home country to the other.
• Sister State/City Arrangements - The States of Karnataka and Bavaria, Maharashtra and Baden Wuerttemberg, and the cities of Mumbai and Stuttgart have twinning arrangements.
• Higher Education - There are approximately 49,483 (2024) Indian students who are studying in Germany, a number which has doubled in the last 4 years.
• The GIAN (Global Initiative of Academic Networks) initiative of MoE has been well received in Germany.

What are the political exchange fora between India and Germany?

• Intergovernmental Consultations (IGC) – Since 2011, Heads of Governments of India and Germany meet regularly to discuss on various subjects of economy, energy, environment and so far, 7 such consultation have been held.
• High-level Engagements - There are regular high-level contacts between India and Germany during G 7 and G 20 summits.
• The latest interaction was held on the sidelines of the G7 Summit held in Apulia, Italy on 14 June 2024 where the two leaders briefly met.
• Ministerial Visits - Bilateral exchanges at the Ministerial level take place regularly.
• External Affairs Minister Jaishankar visited Berlin in September 2024.
• Parliamentary Exchanges - Indo-German Parliamentary Friendship Group, established in the Bundestag in 1971, has contributed to the strengthening of links between the two Parliaments.
• Institutional Cooperation Arrangements - Several institutional arrangements exist between India and Germany to discuss bilateral and global issues of interest, such as
  • Foreign Office Consultations
  • High Defence Committee
  • Indo-German Energy Forum
  • IndoGerman Environment Forum
  • S&T Committee
  • Joint Working Groups in various fields.
• Multilateral Cooperation - Both countries consult each other and coordinate positions 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.

The "G4" countries refer to a group of four nations, Brazil, Germany, India, and Japan, that collectively advocate for reform of the United Nations Security Council (UNSC) and seek permanent membership in the Council.

• Solar Partnership - In 2021, Germany signed the framework agreement of the International Solar Alliance (ISA), thereby confirming Germany's accession to the ISA.
• CDRI Membership - Germany joined the Coalition for Disaster Resilient Infrastructure (CDRI) in February 2020 and participated in the first Governing Council meeting in March 2020.

What are the recent developments?

• Emerging Sectors - India and Germany are furthering cooperation in the areas of application of artificial intelligence and digital technologies, health, agriculture, the manufacturing sector, services, and the social sector.
• Green and Sustainable Development Partnership (GSDP) - The Prime Minister of India and Chancellor of Germany signed a Joint Declaration of Intent on a during the  6^th  consultation.
• APK 2024 - The 18th Asia Pacific Conference of German business (APK) is held in 2024 in New Delhi.
• RE-INVEST – Germany participated as a partner country in RE-INVEST 2024.
• Security Cooperation – The MoU on Security Cooperation signed at the 3rd IGC held in Delhi in 2015 defines bilateral collaboration in this field.
• India and Germany signed the Mutual Legal Assistance Treaty to ensure greater synergy between the two countries in countering terror by sharing intelligence and coordinating joint operations.
• Military Exercises - German and Indian naval frigates conduct PASSEX with latest being in 2024.

A Passex (Passage Exercise) is a type of naval exercise where two or more navies cooperate and train together to enhance their interoperability and communication skills.

• German Air Force took part in the first bilateral exercise Ex TARANG SHAKTI-1 with the Indian Air Force, along with Air Forces from UK, France and Spain, at Sulur, Tamil Nadu in 2024.
• Defence Industry Collaboration - To further enhance the Defence Industry and Defence Cooperation between Germany and India, Bilateral Defence Cooperation was signed in 2019.

References

1. The Hindu | The silver jubilee of a strategic partnership
2. MEA | Germany