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Lok Sabha TV Insights: India – Germany Bilateral Ties

Lok Sabha TV Insights: India – Germany Bilateral Ties


Germany is one of the biggest economies in Europe. Germany’s economy has less demand within country. So, they want to invest in India and expand their economy. India and Germany needs each other. Germany’s population is ageing and decreasing too. Here, India can supply skilled labour force to run their economy.

Germany is India’s leading partner in European Union and seventh largest foreign investors in India. Both countries support each other for UNSC seat and G4 is one of such strategic grouping.

India and Germany have a ‘strategic partnership’ since 2001.Germany can be used as catalyst for stronger EU-India relation. Priorities of India and strengths of Germany can be used for the success of Digital India, Skill India, Make in India, etc. India can support Germany’s growth and Germany can support India’s hunger for Growth.

In 2008, both nations established the Indo-German Science and Technology Centre in New Delhi to promote joint research and development in energy, environment, coal and water technologies. India is getting concessional loans from Government of Germany for many scientific and commercial projects namely Himalaya Hydro power Program (HPPCL), Green Energy Corridors, Promotional Program for Energy Efficient New Residential Housing (NHB), Energy Efficiency in Thermal Power Plants.

India is the only country with whom Germany has such a bilateral R&D Centre dedicated to promote applied and industrial R&D. The Centre is already supporting 15 joint projects and proto-types of some new technologies have been co-developed in solar-thermal energy, stress tolerant chic-pea variety, and high altitude cold resistance plants etc.

India and Germany have been negotiating since 2007 to sign the Mutual Legal Assistance Treaty in criminal matters but have not been able to reach a conclusion due to Germany’s strong reservation to the provision of death penalty in Indian law.

There are already many German companies, who are making India. For example Volkswagen, BOSCH, Allianz (Bajaj-Allianz), etc.

Significance of Angela Merkel’s visit

Total 18 agreements have been signed, few important areas are:-

  • Fast track mechanism for investments
  • To collaborate on Science for research and industry collaboration, which can be hub for innovation
  • In the area of education, Germany would become major attraction for Indian students
  • Vocational educational expertise for skilled work force
  • Disaster management
  • Germany is helping through technology and financing for climate change, which will be very helpful for India in meeting INDC targets.
  • German language in KV, to provide man force to Germany in future.