INDO GERMAN RELATIONS

03 Jun 2023 INDO GERMAN RELATIONS

Posted at 10:04h in Daily current-affairs by rishabh 0 Comments

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This article covers “Daily Current Affairs” and the topic details “Indo German Relations”. The topic “Indo German Relations” has relevance in the International relations section of the UPSC CSE exam.

Relevance:

For Prelims:

Facts about Indo German Relations

For Mains:

GS 2: International relations

State of Indo German Relations?

Challenges in Indo German Relations?

Measures to be taken to address the challenges?

Why in the news?

Raksha Mantri Shri Rajnath Singh to hold bilateral talks with his German counterpart in New Delhi on 5th & 6th June 2023

Facts about Indo German Relations:

Historical Ties: India and Germany have a history of diplomatic relations dating back to 1951.

Economic Cooperation: Germany is India’s largest trading partner in the European Union (EU), and India is one of Germany’s most important economic partners in Asia.
Strategic Partnership: In 2000, India and Germany established a strategic partnership to deepen collaboration in various areas, including political dialogue, defense, education, and scientific research.
Scientific Collaboration: Germany and India engage in robust scientific and technological cooperation such as, Indo-German Science and Technology Center (IGSTC), The German Research Foundation (DFG) and the Department of Biotechnology (DBT) of India have jointly funded several research projects, Max Planck-India Mobility Initiative etc.
Multilateral Cooperation: India and Germany cooperate closely in multilateral forums such as the United Nations, G20, and World Trade Organization (WTO) to address global challenges and promote international peace and security.

State of Indo German Relations?

The two countries have established a strategic partnership and have been working together in various fields, including trade and investment, technology collaboration, scientific research, and cultural exchanges.

Germany is an important economic partner for India, and bilateral trade and investment have been steadily increasing. Both countries have recognized the potential for collaboration in sectors such as manufacturing, automotive, renewable energy, and information technology. Efforts have been made to address trade imbalances and non-tariff barriers to further enhance economic cooperation.

Scientific collaboration and research exchanges between India and Germany have been active, with joint projects and academic partnerships in fields like biotechnology, renewable energy, space technology, and others. The Indo-German Science and Technology Center and other initiatives have facilitated research collaboration and knowledge sharing.

Cultural exchanges and people-to-people ties have also been fostered, contributing to a deeper understanding and appreciation of each other’s cultures. The presence of a large Indian diaspora in Germany further strengthens the interpersonal and cultural connections between the two nations.

Challenges in Indo German Relations?

Trade Imbalance: India has been facing a trade imbalance with Germany, with the trade deficit in favor of Germany. India’s exports to Germany, particularly in manufactured goods, have not been able to match the level of imports from Germany. Addressing this trade imbalance and enhancing market access for Indian goods in the German market remains a challenge.

Non-Tariff Barriers: Non-tariff barriers, such as technical standards, regulations, and certification requirements, pose challenges for Indian exporters seeking to access the German market. Meeting these requirements can be costly and time-consuming for Indian businesses, creating barriers to trade.

Market Access and Investment Protection: India seeks greater market access for its products and services in Germany, particularly in sectors such as agriculture, pharmaceuticals, and information technology. Additionally, ensuring a conducive and transparent investment environment, along with protection for Indian investments in Germany, is crucial for fostering bilateral economic ties.

Intellectual Property Rights (IPR) Protection: India and Germany have had differences regarding intellectual property rights protection, particularly in the pharmaceutical and technology sectors. The issues surrounding patent laws, compulsory licensing, and data exclusivity have been points of contention and require ongoing dialogue and resolution.

Skilled Workforce: India faces challenges in meeting the skilled workforce requirements of German companies operating in India or seeking collaborations. Bridging the skill gap and aligning vocational training and educational programs with German industry requirements can enhance the bilateral relationship.

Visa and Immigration Policies: Simplifying visa procedures and promoting easier movement of professionals, students, and researchers between India and Germany can facilitate greater academic and research collaborations, as well as foster people-to-people exchanges.

Cultural Understanding and Language Barrier: Cultural differences and language barriers can sometimes impede effective communication and understanding between Indian and German stakeholders. Promoting cultural exchanges, language training programs, and intercultural dialogues can help overcome these challenges and foster a deeper understanding between the two nations.

Global and Regional Priorities: As India and Germany have their own distinct global and regional priorities, finding common ground and aligning positions on various international issues, such as climate change, security, and trade policies, can be challenging. Consistent dialogue, mutual understanding, and coordination are essential to navigate these differences effectively.

Measures to be taken to address the challenges?

Enhancing Trade Facilitation: Both countries can work towards simplifying customs procedures, reducing non-tariff barriers, and harmonizing technical standards and regulations. Regular dialogues and consultations between trade officials can help identify and address specific trade-related challenges.
Market Diversification: India can explore opportunities to diversify its exports to Germany by promoting value-added products and services. This can involve identifying niche markets, conducting market research, and leveraging India’s strengths in sectors like IT, pharmaceuticals, textiles, and agriculture.
Investment Promotion and Protection: Both countries should continue to promote and protect bilateral investments through transparent and stable investment frameworks. India can work on improving ease of doing business, providing attractive incentives, and creating a favorable business environment to attract more German investments.
Intellectual Property Rights (IPR) Cooperation: India and Germany can strengthen their cooperation in the field of intellectual property rights by sharing best practices, exchanging information, and engaging in collaborative research and development projects. Resolving differences and addressing concerns related to IPR protection can contribute to a more conducive environment for innovation and technology transfer.
Skill Development and Education Collaboration: India and Germany can foster collaboration in vocational training and skill development programs to meet the requirements of German industries operating in India. Promoting student exchanges, joint research projects, and academic collaborations can further strengthen educational ties and bridge the skill gap.
People-to-People Exchanges: Encouraging cultural exchanges, promoting tourism, and facilitating easier visa procedures can foster greater understanding and closer ties between the people of India and Germany. Language training programs and intercultural dialogues can help overcome language barriers and promote effective communication.
Strategic Partnerships: India and Germany can explore opportunities to collaborate on global and regional issues of mutual interest, such as climate change, sustainable development, counterterrorism, and multilateralism. Regular high-level dialogues and joint initiatives can help align positions and enhance cooperation on these shared priorities.
Sector-specific Cooperation: Both countries can identify specific sectors where collaboration can yield mutual benefits, such as renewable energy, automotive, biotechnology, and space research. Joint research projects, technology transfers, and knowledge sharing can be encouraged in these sectors.

Source:https://pib.gov.in/PressReleseDetail.aspx?PRID=1929565

Q.1 Which of the following statements regarding Indo-German relations is/are correct?

1.Germany is India’s largest trading partner in the European Union.

2.Indo-German Science and Technology Center (IGSTC) promotes bilateral research collaboration between India and Germany.

3.India has a trade surplus with Germany due to its strong manufacturing sector.

4.The Max Planck-India Mobility Initiative aims to facilitate research collaborations between Indian and German universities.

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2, and 3 only

(d) 1, 2, 3, and 4

Answer: (a)

Q.2 Which of the following areas have witnessed significant collaboration between India and Germany?

1.Renewable Energy

2.Defense and Security

3.Cultural Exchanges

4.Agriculture and Food Processing

Select the correct answer using the code given below:

(a) 1 and 2 only

(b) 1, 2, and 3 only

(d) 1, 2, 3, and 4

Answer: (a)

Q.3 India and Germany share a multifaceted relationship encompassing various domains. Discuss the key areas of cooperation and challenges in Indo-German relations. Also, analyze the significance of this relationship for both countries and its implications on the global stage.