Germany India Relations

Context

Germany has recently granted a licence to India to purchase small arms from German companies.

Key Highlights of Germany- India Relation

• Diplomatic: Germany is considered one of India’s most vital companions in Europe.
  • India was also among the first nations to set up diplomatic ties with the Federal Republic of Germany after the Second World War. 
• Strategic Partnership: India and Germany have a ‘Strategic Partnership’ since May 2000, which has been similarly strengthened with the release of Intergovernmental Consultations (IGC) in 2011 at the extent of Heads of Government which lets in for a comprehensive assessment of cooperation and identity of new regions of engagement. 
• High-level Engagements:  There are ordinary excessive-stage contacts among India and Germany. PM and Chancellor meet regularly for bilateral meetings and at the sidelines of multilateral conferences
  • India is among a pick organization of nations with which Germany has some sort of communication mechanism.
• Multilateral Cooperation: Germany and India aid each other on UNSC reforms in the framework of the G4.
  • Germany joined the Coalition for Disaster Resilient Infrastructure (CDRI) in February 2020 and took part in the first Governing Council meeting in March 2020.
  • In April 2021, the German Federal Cabinet authorized the signing of the amended framework settlement of the International Solar Alliance (ISA), confirming Germany’s accession.
• Economic & Commercial Relations: Germany is presently the 12th biggest trading companion for India in 2022-23. 
  • It was India’s 11th biggest trading partner in 2021-22 and 7th biggest trading companion in 2020-21.
  • India constitutes about 1% of Germany’s total foreign trade in 2022. 
  • Major Indian exports to Germany encompass electrical merchandise and automobiles/car additives, textile and clothes, chemical compounds, pharma, steel/steel merchandise, meals/drinks and tobacco and leather/leather-based items. 
  • Major exports to India include machinery vehicles/automobile components, chemical compounds, statistics processing device, and electric equipment
  • Germany is the 9th biggest foreign direct investor in India (8th biggest in 2021-22) with a cumulative FDI in India of US$ 14.1 bn. From April 2000 to March 2023.
• Bilateral Cooperation:  Important bilateral agreements between India and Germany are the Agreement on Avoidance of Double Taxation (DTAA), which got into force in 1996, and the Comprehensive Agreement on Social Security, which entered into force from May 2017.
  • The Indo-German Energy Forum (IGEF) has been promoting cooperation in the priority regions of power protection, power efficiency, renewable energy, funding in energy initiatives and collaborations in R&D, deliberating the environmental demanding situations of sustainable development.
• Science & Technology: Bilateral Science and Technology cooperation is carried out under an Inter Governmental Agreement on ‘Cooperation in Scientific Research and Technological Development’ signed in 1974 
  • The IndoGerman Committee on S&T, established in 1994 coordinates the implementation and reviews joint activities. 
• Culture: The longstanding cultural family members between India and Germany are bolstered by using the cultural and highbrow exchanges among the two countries. The study of Indian literature, mainly Vedas and Upanishads, and also translation of well-known works from Sanskrit to German literature extensively contributed to the better knowledge of India.
  • The visit of Nobel Laureate Gurudev Rabindranath Tagore to Germany in 1921, 1926 and 1930 bridged cultural and intellectual exchange between India and Germany, similarly supported with the aid of mounted networks in socio-cultural fields.
• Indian Diaspora: There are around 2.20 lakh (December 2022) Indian passport holders and Indian-foundation people in Germany.
  • There has been a good sized in the variety of certified and relatively professional Indian specialists in the fields of IT, banking, finance etc.
• Defence: Germany has drastically simplified the licensing requirements for the sale of military device to India.
  • Germany granted a small arms licence to India. Which is a large exception.
  • Germany at some time has had a bar on the sale of small arms to third countries with the exception of European Union member states, NATO (North Atlantic Treaty Organisation) countries and NATO-equivalent countries (Australia, Japan, New Zealand and Switzerland). 
  • The German government has also eased the approval method for defence purchases by India.
  • India has an inventory of MP5 submachine weapons synthetic through Heckler & Koch. 
  • Germany has additionally accredited the offer of a tank engine and propulsion machine for India’s indigenous light tank task.
  • In August 2024, the Indian Air Force (IAF) is scheduled to keep the multilateral exercising Tarang Shakti, in which the German Air Force could be becoming a member of other nations like the U.K, France, and Spain.

Source: The Hindu

UPSC Mains Practice Question

Q. Relations between India and Germany have the potential to work together but they should overcome disagreements on global issues. Comment. (250 Marks)

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