(VOVWORLD) - German Chancellor Olaf Scholz paid an official visit to India last week. The visit is significant for Germany and for the EU, both of which are facing tough challenges.
 Indian Prime Minister Narendra Modi welcomes German Chancellor Olaf Scholz in New Dehli (photo: Reuters) |
This is Scholz’s first visit to India since he became Germany’s Chancellor in August, 2021. The trip drew a lot of attention because it took place with Germany and the EU severely impacted by the Russia-Ukraine conflict and because India has been emerging as a desirable partner in the eyes of many countries.
Special context
The visit took place one year after the start of the Russia-Ukraine conflict, which has had a profound impact on global geopolitics and in which Germany has had a strong role. Germany has been one of the largest suppliers of arms and money to Ukraine. According to the Kiel Institute for the World Economy, Germany has pledged 2.5 billion USD worth of military support for Kiev.
Germany is in the process of adjusting its foreign policy, strengthening its ties with traditional allies in Europe and with the US, and widening the gap with Russia, particularly in energy. Germany has diversified its economic partners and markets in order to reduce its dependence on China, the world's most populous market.
Meanwhile India has become a more important partner, not only because it’s the world’s second most populous country occupying an important geopolitical position, but because it has nuclear weapons. India is among the countries that have steadfastly refused to go along with the sanctions against Russia that Germany and its Western allies have imposed.
India abstained from voting on a UN General Assembly resolution asking Russia to immediately withdraw troops from Ukraine. Last October, India abstained from voting on a General Assembly resolution rejecting Russia’s annexation of 4 separatist regions in Ukraine. India has maintained and expanded cooperation with Russia, particularly in energy, which has helped Russia withstand Western sanctions.
 Indian Prime Minister Narendra Modi and German Chancellor Olaf Scholz (photo: Indiaexpress) |
Berlin’s strategic move
Chancellor Scholz's trip to India is strategically calculated to promote cooperation between the two countries. Chancellor Scholz and his Indian counterpart Narendra Modi discussed official measures to boost bilateral ties, the Ukraine conflict, and the situation in the Indo-Pacific region, and co-hosted a meeting with business representatives from both countries. Scholz visited Bengaluru city, which has been called “the Silicon Valley of India”.
Scholz told a joint press conference that both countries have agreed to boost India-EU trade ties, and intend to soon sign a free trade agreement. He praised India’s booming IT and software industry and expressed his hope that Germany can recruit highly-skilled workers from India.
Analysts say boosting economic and trade cooperation with India is a strategic step to serve Scholz’s ambitious political goals. Gaining economic benefits from India will strengthen Germany’s position as the largest economy in the EU, serve Germany’s goal of diversifying markets, reinforce Scholz’s prestige in the EU, and pull India closer to the EU. But the analysts also say it’s still too early to assess the results of these ambitions.