Germany, India look to boost ties on defence, green energy

Published October 25, 2024
German Chancellor Olaf Scholz shakes hands with India’s Prime Minister Narendra Modi at Hyderabad House in New Delhi, India October 25, 2024 — Reuters
German Chancellor Olaf Scholz shakes hands with India’s Prime Minister Narendra Modi at Hyderabad House in New Delhi, India October 25, 2024 — Reuters
German Chancellor Olaf Scholz and India’s Prime Minister Narendra Modi arrive at Hyderabad House in New Delhi, India October 25, 2024 — Reuters
German Chancellor Olaf Scholz and India’s Prime Minister Narendra Modi arrive at Hyderabad House in New Delhi, India October 25, 2024 — Reuters

German Chancellor Olaf Scholz wants to deepen defence ties with New Delhi and bring the two countries’ militaries closer, he said on Friday, after meeting Indian Prime Minister Narendra Modi.

Germany has not traditionally had close defence ties with India, but is now pitching to join the latter’s effort to wean its arms base from decades of dependence on Russia, at a time when the West seeks to counter China’s growing influence.

“Our overall message is clear, we need more co-operation, not less,” Scholz said.

“At our inter-governmental consultations with India, we also want to deepen co-operation in defence and agree to bring our militaries together.”

Scholz, accompanied by most of his cabinet, is leading a high-level delegation to New Delhi, betting that greater access to the vast Indian market can reduce Germany’s reliance on China.

German Thyssenkrupp is one of two bidders to have partnered with Indian firms to build six conventional submarines in India, in a deal estimated to be worth $5 billion.

The Indian Navy is expected to pick between the German company or Spain’s Navantia soon.

New Delhi and Berlin are working on renewable energy projects, Modi said, among many possible investments in transport infrastructure.

“India is completely transforming its physical infrastructure,” Modi told the Asia-Pacific conference of German business in the Indian capital, attended by Scholz.

“Record investments are being made. This offers many possibilities for German and Indo-Pacific region companies.”

In 2022 Germany pledged 10bn euros to help India achieve its climate goals.

German state lender KfW’s unit DEG, which focuses on the private sector, plans to more than double investment in India to $1bn over the next few years, focusing on renewable energy and infrastructure, an official, Jochen von Frowein, has said.

India-EU FTA

Scholz reiterated his economy minister’s push for swift progress on talks for a free-trade pact between India and the European Union.

“I am sure that if we work on this together, prime minister, this could happen in months rather than years,” Scholz said.

Earlier, Trade Minister Piyush Goyal warned that India would be unable to strike such a deal if the bloc insisted on getting access to the Asian giant’s dairy industry.

A trade deal could be swiftly reached if sensitivities were respected on both sides, Goyal told the conference, following Thursday’s comments by German Economy Minister Robert Habeck that agriculture was the talks’ “most problematic” area, and suggesting that they first tackle the industrial sector.

Progress has been slow on the talks, initially targeted to be wrapped up by the end of 2023, with India blaming the EU for what it called “irrational” standards, as one reason.

Follow Dawn Business on Twitter, LinkedIn, Instagram and Facebook for insights on business, finance and tech from Pakistan and across the world.

Opinion

Editorial

Kurram atrocity
Updated 22 Nov, 2024

Kurram atrocity

It would be a monumental mistake for the state to continue ignoring the violence in Kurram.
Persistent grip
22 Nov, 2024

Persistent grip

An audit of polio funds at federal and provincial levels is sorely needed, with obstacles hindering eradication efforts targeted.
Green transport
22 Nov, 2024

Green transport

THE government has taken a commendable step by announcing a New Energy Vehicle policy aiming to ensure that by 2030,...
Military option
Updated 21 Nov, 2024

Military option

While restoring peace is essential, addressing Balochistan’s socioeconomic deprivation is equally important.
HIV/AIDS disaster
21 Nov, 2024

HIV/AIDS disaster

A TORTUROUS sense of déjà vu is attached to the latest health fiasco at Multan’s Nishtar Hospital. The largest...
Dubious pardon
21 Nov, 2024

Dubious pardon

IT is disturbing how a crime as grave as custodial death has culminated in an out-of-court ‘settlement’. The...