Wednesday, 15 April 2015

India-Germany Relation

Political Relations
India is one of the first countries to end the state of war with post-war Germany in 1951 and amongst the first countries to recognize the Federal Republic of Germany (FRG). The relationship, based on common values of democracy and rule of law has strengthened significantly in the 1990s following India’s economic liberalization and the end of Cold War. In the last decade, both political and economic interaction between and Germany has enhanced significantly. Today, Germany is amongst India’s most important partners both bilaterally and in the global context.
The course of the bilateral relationship was set by the two visits of Prime Minister Jawaharlal Nehru to Germany in 1956 and 1960. There are regular bilateral exchanges, including at the highest level. In recent years, there have been regular high level visits from both sides. PM Atal Bihari Vajpayee visited Germany in May 2003. Former PM Manmohan Singh visited Germany in 2006, 2010 and 2013. From German side, Chancellor Gerhard Schroeder visited India in 2001 and 2004. Chancellor Angela Merkel visited India in 2007 and again in 2011 for the first Inter-governmental Consultations. German President Joachim Gauck paid a State visit to India in February 2014. German Foreign Minister Frank-Walter Steinmeier visited India on September 7-8, 2014.
India and Germany have a ‘strategic partnership’ since 2001, which has been further strengthened with two rounds of Intergovernmental Consultations (IGC) in New Delhi in May 2011, as well as in Berlin in April 2013. The next IGC is likely to take place in India in the second half of 2015. India will be the Partner Country in Hannover Messe-2015 in April 2015. The two countries have several institutionalized arrangements to discuss bilateral and global issues of interest viz. Strategic Dialogue, Foreign Office Consultations, Joint Commission on Industrial and Economic Cooperation, High Technology Partnership Group, High Defence Committee and Joint Working Group on Counter-Terrorism, Indo-German Consultative Group, etc. Germany and India cooperate closely on the issue of UN Security Council expansion within the framework of G-4. Both sides have regular consultation on foreign policy issues such as East Asia, Central Asia, UN issues, Disarmament & Non-proliferation, etc.
There have been regular interactions between Parliamentarians of the two countries. The Indo-German Parliamentary Group in the German Bundestag, established in 1971, has contributed to strengthening links between the two Parliaments. A 16-member India-Germany Parliamentary Friendship Group has been constituted in the 18th Bundestag under the Chairmanship of Mr Ralph Brinkhaus, an MP from the CDU.
In the field of defence, bilateral Defence Cooperation Agreement was signed in 2006 which provides a framework for annual consultations. High Defence Committee (HDC) meetings at the Defence Secretary level take place annually, alternately in New Delhi and Berlin. India was the Partner Country in ILA Berlin Air Show in 2008. State Secretary in the German Ministry of Defence Mr Wolfang Brauksiepe visited India to
attend 7th HDC in New Delhi on July 9-10, 2014. Chief of Naval Staff Admiral R. K. Dhowan paid an official visit to Germany on July 7-10, 2014.
Economic and Commercial Relations
Economic and commercial relations between India and Germany date back to early 16th century when German trading companies from Augsburg and Nuremberg, developed new sea route around Africa, as they sailed in search of precious stones and spices. Thereafter, a number of German companies were established with the purpose of trading with India and other Asian countries in the 16th and 18th centuries. Werner Von Siemens, founder of Siemens, personally supervised the laying of telegraph line between Kolkata and London, which was completed in 1870. The first wholly - owned subsidiary of Bayer in Asia “Farbenfabriken Bayer and Co. Ltd.” was set-up in Mumbai in 1896.
Indo-German cooperation in trade and technology is one of the most dynamic facets of the bilateral partnership. Joint Commission on Industrial and Economic Cooperation is led by the Finance Minister from the Indian side, and the Economics Minister from the German side. In addition, there are several Joint Working Groups in the fields of agriculture, automobile sector, infrastructure, coal, tourism, standardization, vocational education, etc. The Indo- German Energy Forum focuses on renewable energy, alternative fuels, energy efficient technologies and power sector. The Indo- German Environment Forum focuses on on water supply and sanitation, waste management, energy efficiency, and the Clean Development Mechanism (CDM) proposed in the Kyoto Protocol.
The economic relationship has expanded significantly over the years. Germany is India’s largest trading partner in Europe and 2nd most important partner in terms of technological collaborations. However, bilateral trade is on downside in last couple of years due to various domestic and international factors. Bilateral trade during 2013 was valued at Euro 16.08 billion. During the period January-October 2014, it was valued at Euro 13.44 billion (Imports Euro 7.44 billion and Exports Euro 6.0 billion) with a decline of 2.08% compared to the corresponding period of last year.
While India is growing in significance as a trading partner for Germany there is clearly a great deal of potential to be realized. Apart from traditional sectors, knowledge-driven sectors hold good potential for collaboration in the fields of IT, ITES, biotechnology, auto components, renewable energy, green technology, urban mobility & development and the entertainment industry. There are several important Trade Fairs held in Germany, in which Indian companies regularly participate to promote their products and technology.
Garments and textile products, chemical products, leather & leather goods, iron, steel and metal goods, electronic components, electrical components, pharmaceutical products, and auto components are major items of exports from India to Germany. The key German exports to India include electrical generation equipment, auto equipment, complete fabrication plants, bearings, gear equipment, measurement and control equipment, primary chemical products, synthetic material, machine tools, aircraft and iron and steel sheets, etc.
Germany is the 8th largest foreign direct investor in India since 2000. German FDI in India during the period 1991-September 2014, was valued at US$ 7.57 billion. During the period January-September 2014, it was valued at US$ 762.53 million. There are more than 1600 Indo-German collaborations and over 600 Indo-German joint ventures in operation.
The German Indian Roundtable (GIRT), established in 2001 has the objective of spreading information about India and facilitation of Indo-German business ties. There are 14 chapters of GIRT in Germany which are engaged in promoting Indo-German business as well as cultural relations through the regular ‘Stammtisch’ meetings.
Indo-German Science & Technology cooperation started with the signing of the Intergovernmental S&T Cooperation Agreement in 1971 and 1974.Today, Germany is one of the most important global partners of India for S&T cooperation. There are more than 150 joint S&T research projects and 70 direct partnerships between the Universities of both countries. India's scientific establishments have close partnerships with premier German R&D institutions, including the Max Planck Society, Fraunhofer Laboratories and Alexander von Humboldt Foundation. The jointly funded Indo-German Science & Technology Centre was set up in 2008 in New Delhi. India has invested in major science projects in Germany such as the Facility for Anti-Proton and Ion Research (FAIR) at Darmstadt and the Deutsche Elektronen Synchrotron (DESY) for experiments in advanced materials and particle physics.
Germany has also been an important development cooperation partner for several decades. Total bilateral Technical and Financial Cooperation since cooperation began in 1958 amounts to € 10.91 billion. Energy, sustainable economic development and environment & management of natural resources are priority areas under development cooperation. Financial Assistance from Germany has been provided mainly as soft loan, composite loans as well as grants routed through KfW, the German Government's Development Bank. The technical assistance is provided through GIZ- the development agency of German Government. Germany has agreed to provide concessional loans of up to € 1 billion for the financing of Green Energy Corridors through German development cooperation.
Cultural Relations
India and Germany have a long tradition of academic and cultural exchanges. German scholarly tradition has played a key role in introducing Indian art, culture, literature and philosophy to the wider world. India and Germany marked 60 years of establishment of diplomatic relations through ‘Year of Germany in India’ in 2011-12 and ‘Days of India’ in Germany in 2012-13. The Tagore Centre, set up by Indian Council for Cultural Relations (ICCR) in Berlin in 1994, regularly organizes programmes to showcase the Indian heritage and diversity of its culture, through a broad spectrum of dance, music, literary events, films, talks, seminars and exhibition events.
There has been growing interest in Indian dance, music and literature as well as motion picture and TV industry, in particular Bollywood. Indian films and artists are regular feature not only at the reputable Berlin International Film Festival but also at other festivals all over Germany. Bollywood films find regular release here and dubbed versions are telecast on television networks. Indian food is popular in Germany with about 200 restaurants estimated in Berlin only.
The Deutsch-Indische Gesellschaft (Indo-German Society) is engaged in promoting inter- cultural understanding by bringing together people of both countries and conveying information about modern India to the German public. There are 33 independent affiliates of the Society in Germany with around 3,500 members engaged in various socio-cultural activities.
German interest in the Indian philosophy and languages resulted in 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. There have been 24 rotating chairs in various German universities till date. In addition, ICCR supports both long-term and short-term Chairs of Indian studies in Germany. A long-term Chair named Heinrich-Zimmer Chair of Indian Philosophy & Intellectual History has been set up at South Asia Institute, Heidelberg University since May 2010. In 2014, ICCR set up two short-term Chairs in Germany: at Free University Berlin and at Philips University of Marburg.
More than 9,000 Indian students are pursuing various courses in Germany, while around 800 German students are studying or doing their internships in India. Many Indian students are opting for Engineering and Management courses in German Universities . Some German companies also offer scholarships for Indian students to undertake postgraduate courses in German Universities. The German Academic Exchange Service (DAAD) facilitates joint research, training and exchange of young scientists/research scholars and the jointly funded Indo-German Centre for Sustainability (IGCS) at IIT, Chennai is carrying out research in the field of climate change and environmental science. In addition, Central Council for Research in Ayurveda and Siddha is supporting research in Ayurveda by Charité Medical University, Berlin on Osteoarthritis of the knee, which is the first systematic clinical trial for use of Ayurveda in Europe.
Indian Community
There are about 1,10,000 people of Indian origin in Germany with 43,175 holding Indian passports and 67,029 holding German passports. The Indian diaspora mainly comprises of technocrats, businessmen/traders and nurses. There are a number of Indian organizations and associations active on business/cultural front, cementing ties between India and Germany at the people-to-people level.

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