Germany - India Relations

India and Germany signed the Strategic Partnership in 2001, which has been further strengthened by the Intergovernmental Consultations (IGC) between the two Governments. The IGC allows for a comprehensive review of cooperation and a platform to identify fresh areas of engagement. The 5^th IGC was held in New Delhi on 1^st December 2019, wherein 17 cooperation agreements and MoUs were signed across various sectors.

Several institutionalized arrangements exist between India and Germany on bilateral and global issues, including Foreign Office Consultations, High Technology Partnership Group, High Defence Committee, Indo-German Energy Forum, Indo-German Environment Forum and Joint Working Groups in sectors such as skill development, automotive, agriculture, water and waste management.

Germany and India co-operate on the issue of UNSC expansion within the framework of G-4 and consult each other in G-20 on global issues such as climate change and sustainable development. There have been consultations on regional and international issues such as international cyber-security, disarmament & non-proliferation and export controls.

The 6th IGC is scheduled to be held in May 2022, with PM Modi travelling to Berlin to meet with the new chancellor Olaf Scholz. (Source: EOI, Berlin)

India and Germany agree to work together with focus on Artificial Intelligence (AI) Start-Ups as well as 'AI' research and its application in Sustainability and Health care.

Germany is India’s largest trading partner in Europe. India was ranked 25^th in Germany’s global trade in 2018. Bilateral trade during 2018-19 was valued at $24 bn. Some major Indian exports include machinery and mechanical appliances, textiles, and chemicals. Some major Indian imports include optical and medical instruments, machinery and mechanical appliances, vehicles, and accessories.

Germany is the 7^th largest foreign direct investor in India since April 2000. German FDI into India during FY 2020-21 was to the tune of $667 mn. Germany’s cumulative FDI in India from April 2000 to March 2022 amounted to $13,590.85 mn.

A Fast Track Mechanism has been set up for German companies in India under the DPIIT to expedite resolution of issues. The Make in India Mittelstand (MIIM) Programme was launched in 2015 to facilitate the entry of German MSMEs. Currently, 135 MSMEs are being facilitated through MIIM Programme. Invest India is the implementation arm of the Fast Track Mechanism and facilitation partner for the MIIM program.

The total trade between India and Germany stood at $21.767 Billion in 2020-21. The exports from India were $8.12 Billion, while the imports were $13.64 Billion. (Source: Tradestat, DOC website)

Cultural and academic exchanges form an integral part of Indo-German relations. German scholarly interest played a key role in introducing Indian art, culture, literature and philosophy to the wider world. Max Mueller was the first scholar of Indo-European languages who translated and published Upanishads and Rigveda.

German interest in the Indian philosophy and languages resulted in the first Chair of Indology at the University of Bonn in 1818. The Government of India has funded several rotating chairs of Indian studies in German Universities.

About 15,000 Indian students are pursuing various courses in Germany, while around 800 German students are studying in India. The German Academic Exchange Service (DAAD) facilitates joint research, training and exchange of young scientists/research scholars. Indo-German Partnership in Higher Education was signed between DAAD and UGC at the 3^rd IGC in New Delhi in October 2015.