The two sides have had regular high-level interactions in recent years

German Chancellor Olaf Scholz’s upcoming visit to India is set to impart fresh momentum to the bilateral relations which saw renewed focus in 2022.

The visit is expected to see more progress in the Green and Sustainable Development Partnership (GSDP) which was launched in 2022 and a further consolidation of the already robust bilateral engagement on economic issues.

The significance of the two-day State visit on February 25-26 can be gauged from the fact that this is the first standalone visit of a German Chancellor to India since the commencement of the Inter-Governmental Consultation (IGC) mechanism between the two countries in 2011.

This is also his first visit to India since assuming office as the German Chancellor and comes less than three months after German Foreign Minister Annalena Baerbock visited India on December 5-6, 2022.

Regular High-Level Interactions

Prime Minister Narendra Modi and Chancellor Scholz met thrice during 2022. They met during the 6th India-Germany Inter-Governmental Consultations when PM Modi visited Berlin on May 2, 2022. The Indian Prime Minister headed a delegation which included Finance Minister Nirmala Sitharaman, External Affairs Minister S Jaishankar, and National Security Advisor Ajit Doval.

The second meeting took place when Chancellor Scholz invited Prime Minister Modi for the G7 Summit held under the German Presidency in Schloss Elmau, Bavaria, in June 2022. India was a partner country for the Summit.

Additionally, the two leaders also interacted on the sidelines of the G20 Summit held in Bali in November 2022.

During his upcoming visit, Chancellor Scholz will hold discussions with Prime Minister Narendra Modi on bilateral, regional, and global issues.

The Ministry of External Affairs (MEA) had said on Monday that Chancellor Scholz’s visit will enable both sides to take stock of progress on the key outcomes of the 6th IGC, strengthen security and defence cooperation, work towards closer economic ties, enhance opportunity for mobility of talent and give strategic guidance to ongoing collaboration in Science & Technology.

Strong Economic Engagement

The upcoming visit is expected see the conclusion of several B2B agreements between industry leaders from both sides.

It is worth noting that India and Germany share a strong economic partnership. Germany is not only India’s largest trade partner in the European Union, it has consistently been among India’s top 10 global trade partners. To add to this, it is also one of the largest foreign direct investors in India.

In what is being described as a symbol of close economic ties and the strong potential for enhanced cooperation, Chancellor Scholz will be accompanied by a high-powered business delegation. During the visit, PM Modi and Chancellor Scholz will also address a Business Roundtable, comprising top industry leaders from both sides.

Green and Sustainable Development Partnership

India and Germany enjoy a strong Green and Sustainable Development Partnership (GSDP) which was launched during PM Modi’s visit to Berlin for the 6th IGC.

The GSDP is significant in that it is an umbrella partnership that provides political guidance and steer to the robust ties in climate action and SDGs. Under this, Germany is expected to place 10 billion euros in new and additional commitments under their development cooperation portfolio in India.

Around 983 million euros of new commitments were finalized during the Annual Negotiation Meeting (ANM) held in Delhi on November 28, 2022.

During the IGC, India and Germany also agreed to cooperate on Green Hydrogen. The Indo-German Green Hydrogen Task Force was constituted in September 2022 and it learnt that an Action Plan is now close to finalization.

Triangular Development Cooperation

Another dimension added to the India-Germany relationship is working on development projects in other countries.

During the 6th IGC in May 2022, India and Germany agreed to work on development projects in third countries. The four projects announced in May 2022 are now in different stages of implementation.

These include Potato Seed Production through Rooted Apical Cuttings (RAC) Technology in Cameroon; Agri Business Incubator Models for Women in Agriculture & Food Systems in Malawi; Developing Bamboo-Based Enterprises for Sustainable Livelihood and Income Generation in Ghana; and Development of a geospatial portal prototype for planning, monitoring, and evaluation of Ministry of Development and Social Inclusion of Peru (MIDIS) interventions and social programs in Peru.