Connected by a common thread of democracy, India and Germany are natural partners. Indian Prime Minister Narendra Modi chose to describe the two nations, when German Foreign Minister was visiting India last year in September, as “made for each other”. German Chancellor Angela Merkel is on a three-day India visit along with her Cabinet members for the Intergovernmental Consultations. The momentum of Indo-German relations has intensified under the strong leadership of Mr Modi and Ms Merkel. India and Germany have been ‘strategic partners' since 2001. The time is ripe to take this partnership to the next level.
Germany is India's largest trade partner in Europe and the eighth largest foreign direct investor in India since 1991. Bilateral trade in the first half of 2015 was valued at 8.82 billion euros. Germany is also a significant source of technological know-how in several sectors. Economically, strategically and politically, India is an important partner for Germany and vice versa.
First, there is a strong realisation in India about its huge skill deficit. While 75 per cent of workforce in Germany have received formal vocational training, only 2.2 per cent Indians have formal vocational training and much of it is outdated. The problem is more acute in rural areas. To reap the benefits of economic growth and demography, access to affordable and appropriate skills is crucial. Skill development and job creation has become one of the key objectives of the Modi Government, which has set up a dedicated Ministry of Skill Development and Entrepreneurship and launched a remarkable mission to impart skills training to 40 crore people by 2022. Germany is a global leader in the vocational training system and its partnership in the Skill India programme can be a game changer.
Second, India is keen to upgrade the current level of economic engagement with Germany, mainly in the areas of renewable energy, post-harvest infrastructure, transport infrastructure (including railways and ports), water and waste management, green energy corridor, solar energy and urban infrastructure. Germany is a global leader in the use of advanced technology in water and waste management. It is willing to provide technological cooperation and other support to the Clean Ganga initiative. German technical expertise was very successful in cleaning one of the most important rivers of Europe — the Rhine. German technology can be helpful in various cleanliness initiatives.
Germany is also the front-runner in the field of solar energy and already cooperating with India in this area. German companies have done big investments in the Green Energy Corridor and the role of clean energy is indispensable in accelerating India's economic growth. Similarly, Germany can be a valuable partner in the field of quality infrastructure and mobility systems for the Smart Cities scheme.
The understanding between Mr Modi and Ms Merkel is providing a new direction to cooperation on global matters as well. The recently-concluded G4 summit is a remarkable endeavor to push for much-needed reforms in the United Nations. Demands for reforming the UN have long been in the works. Also, cooperation in the areas of counter-terrorism, climate change, refugee crisis and non-traditional security issues is expected to strengthen between these two nations.
Finally, the India-Germany relationship is supported by several institutional instruments, for example, the Joint Commission on Industrial and Economic Cooperation, Foreign Office Consultations, High Technology Partnership Group, High Defence Committee, Indo-German Energy Forum, Indo-German Environment Forum, India-Germany Committee on Science & technology and Joint Working groups on various fields, including skill development, automotive, agriculture, coal, tourism, water, waste management etc.
There is an institutional set-up for political dialogue and communication in the form of the Germany-India Parliamentary Group. Direct interactions among political leaders not only strengthens democracy but also provides the required energy and push for strategic, economic, social and cultural ties. let's hope that Chancellor Merkel’s ongoing visit to India will provide a new dynamism to the bilateral relationship and take the India-Germany relationship to the next level.
(The writer is Research Associate at the Institute of South Asian Studies, National University of Singapore. Opinions expressed here are personal)