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Sansad TV: Diplomatic Dispatch- German Chancellor Olaf Scholz’s visit to India




  • Bilateral relations between India and Germanyare founded on common democratic principles and are marked by a high degree of trust and mutual respect.
  • India was one of the first nations to recognise the young Federal Republic of Germany in 1951.
  • Today, Germany is amongst India’s most important partnersboth bilaterally and in the global context.

 Economic relations:

  • Germany is India’s most important trading partner in the EU.
  • Since India embarked on a course of reform and opened up its economy in 1991, the volume of trade between the two countries has increased rapidly.
  • There is strong Indian demand for German goods, especially capital goods (machinery,electrical engineering products, metal goods, chemical products, motor vehicles and vehicle parts).
  • Indian exports to Germany focus on the textile sector, followed by chemical products, electrical engineering products, metal and leather goods and foodstuffs.
  • There is a discussion in Germany’s parliament to expand their relations in Asia and not limit to China.

Direct investment

  • For decades, Germany has been among the ten principal foreign direct investors in India.
  • Investments have focused on the transport, electrical and metal sectors.
  • Over the past years, the service sector (in particular insurance) has headed the field

Political relations

  • India was one of the first countries to establish diplomatic relations with the Federal Republic of Germany.
  • Today, India regards Germany as an important partner in its quest for a new political role in the region and the world for its ambitious economic reform programmes and for the development of the country’s industrial sector.
  • Germany and India share a common interest in maintaining the rules-based international order, particularly in the maritime domain.
  • The joint fight against global terrorism is becoming more and more important.
  • Cyber security is an area in which Germany and India frequently hold similar views. Tried and tested forms of cooperation have developed in the United Nations and other multilateral forums.
  • Due to its population size and its very rapid economic growth, India sees itself not only as a regional power but also increasingly as a global Player.

Development cooperation

  • Germany’s development cooperation with India is a major component of bilateral relations.
  • India has the largest number of people worldwide living in absolute poverty.
  • Germany is the second largest bilateral donor, after Japan, and uses nearly all the instruments available in implementing its development cooperation policy. Bilateral development cooperation focuses on the following areas:
    • Energy: energy efficiency, renewables and access to energy to reduce poverty
    • Supports the economic participation of women and the setting up of a practice-oriented (dual) vocational training system and provides stimulus for innovative approaches, e.g. in social policy or promoting start-ups.

Education and culture

  • Around 20,000 Indian students are pursuing various courses in Germany.
  • Around 1000 German students are studying or doing internships in India.
  • At the intergovernmental consultations in October 2015, a joint declaration of intent was signed to promote the teaching of German as a foreign language in India and instruction in modern Indian languages in Germany.

Science and technology

  • Scientific and technological cooperation with India goes back to the late 1950s.
  • The countries enjoy long-established and intensive scientific cooperation in many different fields.
  • Together with India, Germany supports a bilateral research promotion centre – a unique model for Germany.
  • Germany is India’s second most important research partner worldwide, after the United States.


  • India faces huge challenges in terms of urban and industrial environmental protection.
  • The fight against air pollution, water protection, long-term, sustainable soil conservation, noise reduction and biodiversity preservation are crucial to safeguarding health and quality of life in the country.
  • India and Germany are working together bilaterally and in international organisations to achieve internationally agreed environmental goals and to learn from one another.

Commonalities between the two Countries:

  • Both share common values and constitutional principles, and our relationship has always been based on great mutual respect and understanding.
  • Today, India is one of the biggest and fastest-growing economies, and Germany is the biggest economy in Europe.
  • India is Germany’s biggest development partner with a proven track record of success.
  • Now, the areas of focus are renewable energy and energy efficiency, sustainable urban development, environment protection and resource management.

Way Forward:

  • Germany is looking for skilled manpower from outside and India should take advantage of it.
  • We need to work towards further strengthening the bilateral relations between the two nations.
  • Both countries must work as equal partners to tackle global development challenges.
  • Germany has technological capacity to cater to the needs of the huge Indian market.
  • Germany must continue to create innovative solutions with India for the future, for the benefit of both of our societies and the world at large.