India and Germany, Europe’s most powerful economy and a beacon of hope amid a stubbornly persistent eurozone recession, are poised to move up the next step in their strategic ties by unveiling an ambitious knowledge partnership and sign a clutch of pacts in areas ranging from trade and infrastructure to renewable energy.
Barely a fortnight after hectic multilateral diplomacy at the BRICS summit in Durban, Indian Prime Minister Manmohan Singh heads to Berlin (April 10-12) for a spot of focused diplomacy with Germany, India’s largest trading partner in Europe and a hub of cutting-edge innovation and high-end manufacturing. The importance of the April 11 Berlin talks can be gauged from the high-profile delegation accompanying the Indian prime minister that includes five senior ministers, including External Affairs Minister Salman Khurshid, Commerce Minister Anand Sharma, Renewable Energy Minister Farooq Abdullah, Human Resource Development Minister M.M. Pallam Raju and Science and Technology Minister S. Jaipal Reddy.
What’s on agenda?
The agenda for the talks between Manmohan Singh and Merkel in Berlin is set to encompass the entire gamut of bilateral relations and flesh out new pathways of cooperation between Asia’s third largest economy and Europe’s powerhouse that has managed to roll onward while PIGS (Portugal, Ireland, Greece and Spain –Cyprus has been added to this list of profligates) flounder and give a bad name to Europe.
The Manmohan Singh-Angela Merkel meeting will also be watched keenly in European capitals as the long-negotiated India-EU FTA will be high on the agenda. Germany, the largest contributor to the EU budget, is an influential player in shaping these critical negotiations for a broad-based trade and investment pact that could well prove to be a game-changer in placing the India-EU relations on a new plane. The 27-nation EU is India’s largest trading partner. Manmohan Singh and Merkel are also expected to discuss strategies for reviving the eurozone in whose health and well-being India has enormous stakes. In this context, the Indian leader is expected to pitch for closer cooperation in the G20 format and issues which are expected to figure at the G20 summit in St. Petersburg in September.
Besides the global financial landscape, the two countries are looking to infuse greater economic and strategic content in their bilateral ties. Ahead of the visit, German Ambassador to India Michael Steiner underlined the growing importance of India in his country’s foreign policy calculus. The envoy stressed that Germany has Inter-Governmental Consultations with very few “carefully selected partners” and India was the first one in Asia with which his country initiated this “special format.” He also stressed that India and Germany have similar positions on a host of cross-cutting issues, ranging from terrorism to the UN reforms.
Knowledge Partnership
The sealing of an innovation-driven knowledge partnership between India and Germany could well be an important showpiece outcome of Manmohan Singh’s visit to Berlin. The two leaders are likely to unveil an ambitious scheme for skill development in India with Germany setting up a string of vocational education centres to cater to the needs of the manufacturing industry in India. Around 4,500 Indian students are already pursuing various courses in Germany, home to a vibrant Indian community of 110,000 people.
Energy and Infrastructure
With Germany in the process of phasing out nuclear power, the prospects of a bilateral civil nuclear deal have receded for now. The focus now is on stepping up collaboration in renewable energy. Diplomatic sources say the two countries are in the process of firming up a green corridor and could set up a fund of up to one billion euros for promoting non-conventional energy and sustainable development. With proven prowess in high-value manufacturing, Berlin is expected to pitch for partnering India in the Delhi-Mumbai industrial corridor.
Why Germany Matters
The importance of Germany for India can’t be overstated. Germany has become India’s largest trading partner in Europe, with bilateral trade touching 18.37 billion euros in 2011. Germany is the 8th largest foreign direct investor in India. German FDI in India is estimated to be around $1.484 billion.
On the strategic plane, there is much India can gain from Germany in terms of sprucing up its counter-terror infrastructure. Germany has recognised strengths in form of the German counterterrorism police force GSG9 and sophisticated technology. India is also keen on closer interaction between intelligence services of the two countries. The two countries, key players in the G4, are also fellow travellers in pursuit of a more democratic international order and are pitching for permanent seats for themselves in a reformed UN Security Council.
India Writes Network
Author Profile
- Manish Chand is Founder-CEO and Editor-in-Chief of India Writes Network (www.indiawrites.org) and India and World, a pioneering magazine focused on international affairs. He is CEO/Director of TGII Media Private Limited, an India-based media, publishing, research and consultancy company.
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