On Friday, October 25th, German Chancellor Olaf Scholz urged the European Union to pay attention to trade with India during his visit to the country. He expressed the hope to diversify Germany’s trade further to reduce economic dependence on China.
During his visit, Scholz held talks with Indian Prime Minister Narendra Modi to enhance the strategic relationship between the two countries. He emphasized the importance of avoiding sole reliance, especially in critical areas such as key raw materials and specific technologies.
Scholz, accompanied by several key ministers and business leaders, led a high-level delegation that arrived in India on Thursday, October 24th, for a three-day visit.
Germany is seeking to nurture India as a source of trade and geopolitical support, particularly as relations with China have soured, casting a shadow on the country’s economic prospects.
According to reports from the Associated Press, the two sides signed several agreements on Friday, including on confidential information protection, labor exchange joint statements, and a roadmap for green hydrogen, technology, and innovation to enhance cooperation in defense, information technology, clean energy, skills development, and artificial intelligence fields.
Scholz highlighted that Germany is India’s most important trading partner in the European Union and expressed his determination to expand these relations. He stated that Germany is pushing for the EU and India to quickly finalize a free trade agreement, which he believes could happen in a matter of months rather than years.
Earlier in the day, Modi announced that Germany would increase the number of visas for Indian tech workers from 20,000 to 90,000.
Modi previously stated that India provides stability, political continuity, and abundant labor for trading partners like Germany. He emphasized that India is now a center of diversification and risk mitigation.
Scholz also stressed the importance of risk mitigation, clarifying that it does not mean reducing trade or openness. He expressed that for them, risk mitigation signifies diversification.
Following the talks, Modi remarked that the global forums established in the 20th century are inadequate to address the challenges of the 21st century and called for reforming the United Nations Security Council. With a population of over 1.4 billion people, India has long advocated for a permanent seat on the Security Council.
Modi emphasized that due to China’s attempts to expand its influence in the Indo-Pacific region, issues related to rule of law and freedom of navigation have raised serious concerns in the region.
Modi noted that under Scholz’s leadership, the relationship between the two countries has gained new momentum, with increasing cooperation in defense and security, symbolizing trust.
According to Bloomberg, traditionally, Germany has not had close defense ties with India, but Modi has indicated potential for cooperation in defense. Germany’s ThyssenKrupp AG is also expected to collaborate with Indian companies to build six advanced conventional submarines in India.
On Saturday, October 26th, the German Chancellor will visit two German naval vessels participating in a joint naval exercise with the Indian Navy in the state of Goa.