German Chancellor Olaf Scholz Pushes for Deeper Defense and Economic Relations with India

German Chancellor Olaf Scholz expressed his intention to strengthen defense collaboration with India during a meeting with Indian Prime Minister Narendra Modi on Friday. This initiative marks a significant shift as Germany aims to build closer military relations with New Delhi, especially in light of India's desire to reduce its long-standing dependence on Russian arms amid rising concerns about China's influence in the region.

Scholz stated, “Our overall message is clear: we need more cooperation, not less.” He emphasized the goal of enhancing defense ties through inter-governmental consultations, aiming to align the military forces of both nations more closely.

Accompanied by a high-level delegation, including many cabinet members, Scholz is focused on increasing Germany's presence in the vast Indian market to mitigate its reliance on China. A key aspect of this partnership involves a competitive bid for a major defense project. German company Thyssenkrupp, in collaboration with Indian firms, is vying to construct six conventional submarines in India, a project valued at approximately $5 billion. The Indian Navy is expected to make a decision soon between Thyssenkrupp and Spain’s Navantia.

In addition to defense matters, Scholz highlighted the urgency of advancing negotiations for a free-trade agreement between India and the European Union. Earlier, Indian Trade Minister Piyush Goyal indicated that a deal might be unattainable if the EU insisted on access to India's dairy sector. Although both parties aimed to finalize discussions by the end of 2023, progress has been slow, with India citing "irrational" standards from the EU as a significant barrier. Goyal noted that a swift agreement could be possible if both sides respected each other's sensitivities.

German Economy Minister Robert Habeck, speaking at the Asia-Pacific conference of German business in New Delhi, identified agriculture as a challenging area in the trade negotiations and suggested that focusing on the industrial sector might be more productive for the time being.

PM Modi and Scholz Strengthen Ties During Three-Day Visit to India