Relevance: GS-2 : Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests.

Key phrases: India-Germany Bilateral Ties, The Indo-German Chamber of Commerce (IGCC) , Work Plan 2022, Economic Relationship, Indo- German Trade Relationship,

Why in News ?

• Recently, India and Germany signed a work plan for cooperation to strengthen quality infrastructure, reduce technical barriers to trade, enhance product safety and strengthen consumer protection.
• The Work Plan 2022 was signed during the virtually held 8th annual meeting of the Indo-German Working Group on Quality Infrastructure.
• It was led by the Indian Ministry for Consumer Affairs, Food and Public Distribution, and the German Federal Ministry for Economic Affairs and Energy.

Key Highlights

• The areas identified for collaboration include mobility, energy, circular economy, smart and farming/ agriculture.
• It also includes medical devices, digitalisation (artificial intelligence, Industry 4.0 and other new technology areas), machinery safety, medical devices and equipment and market surveillance.
• The Work Plan 2022 signed virtually during the meeting would pave the way forward for collaboration towards well functioning and resilient systems of quality infrastructures.

About India - Germany Bilateral Ties

• There’s a lot that unites India and Germany.
• Both are leading democracies and share a passion for liberal thought, ingenuity and social inclusivity.
• The land of Beethoven, Karl Marx, Nietzsche and Schopenhauer stands out for its pursuit of excellence in automotive design, engineering, electronics, culture and the arts.
• Battered by two World Wars, it was Germany’s resilience and a work-focused culture that placed it in the global spotlight.
• Just as Indians are wowed by the open-air concerts, exhibitions, architecture and heritage walks of Germany, Bollywood is among India’s biggest cultural exports to the EU country.
• Traditional healing practices appeal to people in both countries.
• Germany and India have pacts to promote ayurveda, yoga and naturopathy, unani, siddha and homeopathy (Ayush).
• According to a study by market research institute Gesellschaft für Konsumforschung, there are over 3 million yoga practitioners in Germany.

Economic Relationship

• Background
  • Though India and Germany have a trade history of over 500 years, this year marks 66 years of AHK Indien, the Indo-German Chamber of Commerce (IGCC), and both the nations look forward to new ways to enhance cooperation.
  • Bilateral ties are on the upswing in almost every area.
  • Germany is India’s 6th largest trade partner.
  • Despite the pandemic, Indo-German trade increased by 19% in the first 11 months of 2021 over 2020.

• Business Ties
  • More than 1,800 German companies have business relations with India, the majority of which have subsidiaries or joint ventures.
  • There are more than 1,600 Indo-German collaborations and over 600 Indo-German joint ventures in operation.
  • German firms have created hundreds of thousands of job opportunities in India.
  • Nearly 565 Indian companies are in Germany and they have added to its growth story.
• FDI
  • Germany has been the 7th largest foreign direct investor in India since January 2000.
  • German FDI in India from April 2000 to September 2021 stood at $13.4 billion.
• India’s Export
  • Among the significant Indian exports to Germany are chemicals, textiles, apparel and machinery.
• India’s Import
  • Important German imports to India include machinery, vehicles and chemicals.

Development Cooperation

• Prime Minister Narendra Modi and German Chancellor Olaf Scholz have sought to deepen mutual ties.
• The two countries have pacts on metros, Namami Gange, green transmission lines, smart cities, high-speed railways and solar rooftop projects.
• The two leaders have agreed to diversify bilateral cooperation and to focus on collaborations for climate action and green energy.
• The importance of the relationship is highlighted in the ‘Indo-Pacific Guidelines’ adopted by the German government in September 2020, covering various avenues from security to open trade and sustainability.

Science and Technology Cooperation

• Technology expertise has always been the hallmark of German companies, with top brands like Mercedes-Benz, Volkswagen, BMW, Bosch and Siemens and more.
• Both countries are poised to drive further cutting-edge innovation.
• The High Technology Partnership Group plays a major role in developing international supply chains and boosting cyber security, both vital to growth.
• There are more than 150 joint S&T research projects and 70 direct partnerships between Universities of both countries.
• India’s scientific establishments have close partnerships with German R&D institutions, including the Max Planck Society, Fraunhofer Laboratories and the Alexander von Humboldt Foundation.

Culture Cooperation

• The cultural salad bowl of Germany deserves special mention.
• German universities already attract the highest number of Indian students among European countries.
• Besides world-class education, Indian students have multiple work opportunities in an ecosystem that welcomes diversity and encourages critical thinking.
• Germany offers a host of activities for Indian travelers, more than 25,000 castles, assorted nature trails, harbor towns, and a wide range of culinary and hospitality experiences.

Conclusion

• Covid has exposed the fragility of the world to force-majeure events.
• To bounce back from covid disruptions, aspirations will need to be aligned with resilience, and collaborations between the two countries could open up new revenue streams and boost economic recoveries.
• The shared interests of Germany and India in a multipolar global order, with a panoply of ties across culture, trade, education, technology, commerce and climate action, could help usher in even better economic growth as we all move to build back.

Source: Livemint, Business-Standard

Mains Question:

Q “The shared interests of Germany and India in a multipolar global order could help usher in better economic growth as these two nations move to build back.” Discuss.