Signaling the firm end of German Asia policy from the era of the former Chancellor Angela Merkel, which focused primarily on China, the German government adopted a new “Focus on India” strategy paper on October 16, 2024—right in time for the 7th German-Indian Intergovernmental Consultations (IGCs) taking place in New Delhi on October 25-26. Germany and India have been partners since 2000, but India never really figured prominently in German foreign policy priorities, while New Delhi chose Paris as its closest and most important partner in Europe.
This is now likely to change. In light of increasing tensions with China, the German government has prioritized working with like-minded partners in the Indo-Pacific—including Japan, Australia, and India. The “Focus on India” paper captures this changed thinking in Berlin and aims to set a new, ambitious agenda for the relationship with India.
This new focus is reciprocated in New Delhi. Ongoing tensions in India-China ties with a simmering border crisis has led India to diversify its partnerships. As New Delhi tries to shore up capabilities and work with like-minded countries, Europe has come to occupy an important role in Indian foreign policy. Speaking at the annual German ambassadors conference in Berlin recently, Indian Foreign Minister Subrahmanyam Jaishankar stated that in a shifting global order, India sees the European Union and Germany as “key players,” particularly on innovation and technology, clean energy, migration and mobility, as well as security and defense. Growing “strategic awareness” in Europe is appreciated in New Delhi and India would welcome Germany taking a keen interest in the Indo-Pacific, just as it does in the Euro-Atlantic region.
Converging World Views
Germany and India today have more strategic convergence than ever before. While clearly not pursing the same approach to dealing with China, both are “similar minded” on assessments of the challenges posed by China. There is a greater understanding in Berlin on the aggressive role China often plays in the Indo-Pacific and an urgency to “de-risk” the relationship by reducing dependencies.
It is in this context that Germany sees India as a democratic partner for security and stability. The “Focus on India” paper argues that the country is a “central and active shaper of international politics,” and a stabilizing force in the Indo-Pacific region, which is facing considerable pressure of China’s growing footprint.
Interestingly, diverging views on Russia’s war against Ukraine and India’s longstanding partnership with Moscow have not de-railed Germany and Europe’s ties with India. In its new strategy paper, Berlin calls for “more dialogue” and asserts that divergences on Russia do not take away from the fact that both countries have “shared key interests and similar understanding of international politics.” Russia-China coordination is another issue that both Berlin and New Delhi are observing keenly.
A New Element: A Security and Defense Partnership
India is working to diversify its security and defense partnerships in a bid to reduce its dependence of Russia, particularly as it is in the middle of a border crisis with China. This has emerged as an important area of cooperation with European partners. Over the past decade, Russia’s share of India’s defense imports has dropped to 36 percent; meanwhile, the share of France increased by almost 400 percent between 2013 and 2022. Germany also aims to be a “reliable” security partner for India, which includes arms cooperation and co-production with Indian companies. Berlin will also seek to improve export control procedures to make this cooperation “predictable.”
In order to increase cooperation between their armed forces, the German air force participated in “Tarang Shakti 2024,” a multinational air exercises hosted by India, which also included Australia, France, Greece, Spain, the United Kingdom, and the United States, among others. As part of Germany’s 2024 Indo-Pacific naval deployment frigate Baden Württemberg and support ship Frankfurt am Main will make scheduled port calls in India. Berlin and New Delhi are also working on concluding a logistics support agreement.
Trade, Climate, and People-to-people Ties
As Germany seeks to reduce its dependence on China, India is, as the new strategy points out, key to “diversifying Germany’s economic and trade relations with Asia.” Trade between Germany and India currently stands at $33 billion, but there is room for improvement particularly on investments. India is implementing changes which will increase the ease of doing business in India, also through a High-Level Fast Track Mechanism for companies.
Many large German companies are entrenched in China; however, the “Focus on India” paper mentions the need to change their perceptions of India, by overcoming structural challenges that make it difficult for companies to enter the Indian market. The 18th Asia-Pacific Conference of German Businesses will take place in New Delhi on October 25. Export credit agencies of the two countries are working toward the signing of a reinsurance agreement to improve exports and investments in both directions.
Another crucial pillar of this partnership is cooperation on climate change and energy security. India has a key role to play here. Under the Agenda for Green and Sustainable Development, the two countries have concluded 28 agreements to the tune of €3.22 billion. This only underlines the potential in this area, especially for green hydrogen and green ammonia. The two countries are also looking to partner with third countries in Africa on climate issues.
Finally, it is people who build a living bridge between countries and the growing Indian diaspora in Germany also helps strengthen ties. Currently, 43,000 Indian students are studying in Germany. The India Skilled Labor Strategy, which was drawn up by several ministries in Berlin, will be presented at the Intergovernmental Consultations, and is aimed at attracting more highly-skilled labor from India.
From a partnership mostly relying on trade to this broad-based agenda and growing strategic convergence, Germany-India ties have come a long way. This will be Chancellor Scholz’ third visit to India as cancellor. He invited Prime Minister Modi to Schloss Elmau during Germany’s G7 presidency in 2022, and Modi also went to Berlin for the 6th IGCs. Foreign Ministers Jaishankar and Annalena Baerbock have had several high-level interactions during the past three years. The German delegation to New Delhi will also include Baerbock, Economy and Climate Minister Robert Habeck and several others. The intensity of ties and shifts in policy have resulted in Germany-India alignment like never before.
Garima Mohan is a Brussels-based senior fellow in the German Marshall Fund’s (GMF) Indo-Pacific program, leading the team’s work on India and the India Trilateral Forum.
