Germany and India: Bilateral relations

05.03.2024 - Article

Relations between Germany and India are built on mutual respect, shared values and support for each other in a spirit of partnership. India and Germany are now key partners on the global stage and cooperate on issues such as climate change, international terrorism, striving to establish a sustainable global economic order and advance what they consider to be the necessary reform of the United Nations.

After the Second World War, India was one of the first countries to establish diplomatic relations with the Federal Republic of Germany. Today, India regards Germany as an important partner for its ambitious economic reform programmes, for the energy transition, and research and technology. The countries’ strategic partnership is based on the May 2000 Agenda for the Indo-German Partnership in the 21st Century, which has since been updated by further joint declarations, and most recently by the signing of the Agreement on a Comprehensive Migration and Mobility Partnership. The key forum for developing relations further is the Indo-German intergovernmental consultations, at which the two countries’ Cabinets have held joint sessions every two years since 2011, alternately in Germany and India. Germany is the only country with which India maintains dialogue like this at intergovernmental level.

India has one of the fastest growing economies and by 2027 will likely be the third largest economy in the world.

With its rapidly growing volume of trade, Germany is India’s most important trading partner in the EU and thus also one of the country’s key trading partners worldwide.

At the same time, industrialisation and urbanisation are causing serious damage to the environment. India is now the world’s third largest emitter of greenhouse gases. The country does however have ambitious targets for expanding renewable energy. These two issues are addressed in the Partnership for Green and Sustainable Development, which was signed by Federal Chancellor Scholz and Indian Prime Minister Modi on 2 May 2022.

Germany’s development cooperation with India remains a major component of bilateral relations. German development cooperation supports the economic participation of women, the setting up of a practice-oriented vocational training system and provides stimulus for innovative approaches, e.g. by promoting start-ups.

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