Germany and India want to expand economic cooperation

As expected, Chancellor Scholz and Prime Minister Modi in New Delhi spoke out in favor of more joint economic activity. When it comes to political issues, however, things are not likely to be so harmonious.

Prime Minister Narendra Modi welcomes Chancellor Olaf Scholz in front of the Indian government's guest house in New Delhi

Chancellor Olaf Scholz and Indian Prime Minister Narendra Modi want to significantly expand economic relations between the two countries. Cooperation will also be strengthened in the defense sector, Modi said after a meeting in New Delhi, without giving details. Investments by German companies in the country should be increased, said Scholz. In addition, both heads of government advocated the conclusion of an EU-India free trade agreement.

The next Asia-Pacific conference of German business will take place in India in 2024. At the same time, the chancellor campaigned for the recruitment of IT experts from India for work in Germany. The two countries also want to work more closely together in the area of ​​research and development.

Scholz will be accompanied by a high-ranking business delegation on his two-day trip to New Delhi and Bangalore. In addition to energy issues, closer armaments cooperation with India will also be discussed. According to information from the Reuters news agency, the chancellor wants to promote a billion-dollar submarine business. India wants to buy six conventional submarines worth 4.9 billion euros. ThyssenKrupp Marine Systems (TKMS) is being discussed as a manufacturer. 

1800 German companies in India

India is now the fifth largest economy in the world and a sought-after trading and investment partner. 1,800 German companies are already active there. Among other things, Scholz will be visiting a location of the software group SAP in the high-tech metropolis of Bengaluru – the southern Indian Silicon Valley – on Sunday.

Scholz sees potential for increased cooperation in renewables too energies, hydrogen, mobility, the pharmaceutical industry and the digital economy. India is the third largest producer of climate-damaging greenhouse gases after China and the USA, but lags behind when it comes to climate protection.

No declaration on the Ukraine war planned

Politically, however, relations are not easy: India is heavily dependent on Russia for armaments and energy supplies and has not yet condemned the war of aggression in Ukraine. The German government does not expect a fundamental change in India's position on Russia even as a result of Scholz's visit; a joint declaration on the Ukraine war is not planned.

Modi said after the meeting with Scholz that India was ready to “make a contribution to any peace effort” with a view to the war. Since the beginning of the war, his government had called for a solution through dialogue and diplomacy. For his part, Scholz demanded that New Delhi take a clear stance on the Russian war of aggression. This was also “above all a major catastrophe” because Russia had violated the international principle “that borders should not be moved by force”. Revisionism should not be the basis for the actions of states, emphasized the Chancellor. 

sti/se (afp, dpa, rtr)


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