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Chancellor Merkel’s visit to India

Writer: Manoj BarveManoj Barve

The contrast could not be more glaring when Chancellor Merkel met Prime Minister Modi over the last couple of days to co-chair the 5th Round of Inter-Governmental Consultations which began in 2011 and take place every alternate year. Merkel heads an alliance Government led by her Christian Democratic Union but referred to be as liberal. Modi leads National Democratic Alliance which the western media never fails to prefix with Hindu-Nationalist. Germany - known for its direct approach and clear dialogue was represented by Merkel with her moderate stand and the reputation of “leader of the free world”, India which has been considered as soft power since long was represented by Modi with his forceful stand and “India first” strategy.


And yet, both the countries are convinced that they are natural partners.


Geopolitical realities


In the past for Germany, India always came after it’s North-Atlantic alliance partners, Russia and China. India thought of Germany only after the USA, UK and Russia. But the new geopolitical equations are bringing both the nations closer swiftly. The US’ unpredictable stance on various issues, Chinese dictatorial stand and aggressive globalization, US-China trade war, autocratic Russia, and uncertainties over Brexit are forcing Germany and India to come closer – faster than envisaged in the past.


German Foreign Minister Heiko Maas’ speech in the German Parliament on 24th October was path-breaking so far as future of Indo-German relations is concerned. While describing India as the “pillar of stability” in South Asia Maas mentioned that “we have a partner in India that is much closer to our values and our understanding of democracy”. German parliament passed a resolution calling for upgrading of ties between Germany and India a few days before Merkel’s visit.


Hurdles in Indo-German cooperation


The major obstacle has been the unconcluded Free Trade Agreement (FTA) between India and European Union. The discussions broke in 2013 and have to restart yet.


India's imposing of heavy duties on Automobiles, car parts, wines and spirits, and IPR issues make EU unhappy. And India wants EU to give more access to her professionals, get recognized as data-secure country and lifting of ban on Indian generic drugs. For significant but handful issues, the whole trade between EU and India is getting undermined. Result? In 2018 India’s bilateral trade with Germany stood at EUR 19 billion. Germany- China: EUR 199 billion!!! A successful FTA could certainly help reduce the gap.

 

Free trade pact could help minimize the uncertainty experienced by German investors” - Merkel mentioned. At the annual general meeting of Indo-German Chamber of Commerce (IGCC), she also mentioned about the difficulties reported by small and medium enterprises (German Mittelstand) to find way around the "bureaucracy labyrinth”. “With the new EU-commission there will be a new attempt”, she added and held intensive discussions about the FTA with Prime Minister Modi.


Future of Cooperation


Over 20800 Indian students take higher education in Germany, an additional 1000 Indian research scholars are pursuing their Doctorate, 18000 learn German in India at Goethe Institute (Max-Muller Bhavan), hundreds of schools under PASCH as well as Kendriya Vidyalaya teach German to over a 100 000 school-goers. Many German universities, research and innovation institutes, science and technology centers are represented in India. India too has a moderate cultural, business and technology representation in Germany.

Accompanying Ministers and top bureaucrats from both the countries signed five Joint Declarations and 17 MOUs on Friday on topics ranging from space to agriculture, football to yoga, museums to maritime technology, and Artificial Intelligence to cyber security. These MOUs form the basis for roll-out of future activities. And hence it would be interesting to look at some concrete steps planned.


  • Green Urban Mobility initiatives will be supported by Germany with EUR 1 billion (INR 8 000 CR) funding.

  • Germany will earmark EUR 200 million (INR 1 600 CR) to reform bus sector in Tamil Nadu in order to move from diesel- to electric-powered buses.

  • Merkel expressed her Government’s intention to simplify immigration procedure for Indian skilled workers to Germany.

  • India expressly wants to learn from German education and skill development programmes in order to make trainees highly efficient and completely industry-ready. Germany wants to invite Indian teachers for participating in train the trainers programme for vocational education. A sustainable growth of skills programme has been initiated with Siemens and GIZ.

  • Merkel mentioned that the business delegation accompanying her consists of German SME sector (The Mittelstand) who want to be present in growing Indian market for a win-win situation.

  • On cultural exchange, Merkel mentioned that Indian culture is not sufficiently present in Germany.

  • GINSEP (German Indian Startup Exchange Programme) is helping convergence of startup eco-system in both the countries.

  • Apart from financing Nagpur metro, German organisations are also supporting smart city projects in Kochi, Coimbatore and Bhubaneshwar. It was agreed to expand the cooperation to more Indian cities.

  • Foreign Office to establish a Schengen-Visa-Centre within the German Consulate General in Mumbai from August 2020.

Unlike China, India is not striving for global supremacy. India’s declared goals are – inclusive growth and eradication of poverty. For this we need to increase our manufacturing share in GDP, empower our SMEs, produce innovative products and services, develop skills of our growing youth, and enhance exports. Growing industrialization and urbanization is to be done while maintaining ecological balance. In doing so we must take care of our cities and villages, solid waste and hazardous waste, waste water and potable water, maritime pollution and air pollution. New Delhi experienced health emergency in the middle of Merkel’s visit. In all our priorities for balanced growth, India and Germany can cooperate perfectly for mutual benefits.


30 years ago on 9th November, Berlin Wall came down resulting in cessation of cold war by lifting of the iron curtain. Today we are facing challenges of different kind. By collaborating and finding sustainable solutions for an inclusive growth based on common values and democratic principles. India and Germany can show the world a new path.





(Thanks to Auswaertigesamt, Ministry of External Affairs, Deutsche Welle, Sueddeutsche Zeitung, and NDTV)

 
 
 

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© 2020 by Manoj Barve.

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