India-Germany Strategic Partnership

Syllabus: Bilateral, regional and global groupings and agreements involving India and/or affecting India’s interests

Foundational Pillars of the Relationship

  • India and Germany have maintained a Strategic Partnership since May 2000.
  • Germany was India’s 12th largest trading partner during 2023–24.
    • Bilateral trade has grown steadily, although the trade balance favours Germany.
    • Germany is India’s 9th largest foreign investor, with US$ 14.5 billion FDI since 2000.
  • The India–Germany DTAA (1991) strengthened investment and reduced double taxation.
  • Cultural ties extend across literature, music, films, yoga, Ayurveda, and academia.
    • Rabindranath Tagore’s visits in 1921, 1926, and 1930 built early intellectual links.
  • Around 2.46 lakh Indian-origin people live in Germany as of December 2023.

Key Areas of Cooperation

  • Energy and Climate
    • Indo-German Energy Forum (IGEF) promotes renewable and clean energy cooperation.
    • A Green Hydrogen Task Force was created through a 2022 Joint Declaration.
    • Germany was invited to join the Global Biofuels Alliance (2023).
  • Development and Infrastructure
    • Germany provides technical and financial assistance in energy, environment, and urban development.
    • Total cooperation reached €24 billion by the end of 2023.
    • Siemens supports railway modernisation and freight capacity expansion in India.
  • Science, Education and Mobility
    • 50 years of S&T cooperation are being celebrated in 2024.
    • The Migration and Mobility Partnership Agreement (2022) facilitates legal migration.
    • Social Security Agreement (2017) protects posted workers’ pension and contributions.
    • 49,483 Indian students study in Germany, doubling in four years.
  • Defence and Security
    • Bilateral Defence Cooperation Agreement (2006) guides military ties.
    • Defence Industry Cooperation Agreement (2019) promotes joint production.
    • Naval PASSEX exercises and Ex TARANG SHAKTI-1 air exercise (2024) enhanced interoperability.

Political and Institutional Framework

  • Intergovernmental Consultations (IGC) have been held seven times since 2011.
  • Leaders meet regularly during G7 and G20 summits, including Apulia 2024.
  • Foreign Office Consultations, S&T Committee, and High Defence Committee guide engagement.
  • Both countries cooperate in G20, UN, and climate negotiations.
  • India and Germany support UN Security Council reform through the G4 grouping.

Recent Strategic Developments

  • Cooperation is expanding into AI, digital technologies, health, manufacturing, and agriculture.
  • Green and Sustainable Development Partnership (GSDP) was launched during the 6th IGC.
  • German business engagement deepened through APK 2024 and RE-INVEST 2024.
  • Security MoU (2015) and Mutual Legal Assistance Treaty support counter-terror cooperation.

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