Indo-German relationship has witnessed phenomenal transformation across 5 centuries since their first interaction via economic cooperation. However, the most critical aspects of these transformation came into light as the nature of the political relationship between the two countries shifted after World War II. At one point in time, Germany and India had a common challenge to face i.e. reunification of their homelands and creating new political identities. From being a war enemy to becoming one of the first countries to establish diplomatic relations with the Federal Republic, India has taken a leap towards a long-lasting dynamic partnership through numerous fields of mutual interests and bilateral development.

Political relations and economic development

Not only that India has benefited from German support and efforts to improve its inside economy, but this effect was in sync with Indian investments in Germany. Several declarations have been announced to initiate momentum towards this cooperation beginning with the first official agenda on Indo-German relations established in 2000. Bilateral agreements falling within the scope of this agenda include vocational training, renewable energy resources and agriculture, science, technology and research just to name a few.

German investments in India

Germany is the most significant trading partner for Indians within the Eurozone and the 6th worldwide with the majority of German imports being centered around machinery, electronics, motor vehicles and chemicals. In addition to this massive cross trade movement, German direct investments amounting to around € 10 billion cannot be overlooked. These investments are aimed at transport infrastructure and energy resources.

Being global development partners and as previously touched on, development cooperation is key to the Indo-German relationships. Common sustainable development goals aim at improving Indian stand on poverty, poor health and social disparities. In addition include climate negotiations, environmental protection and production of renewable energy sources that are earth-friendly. Besides, helping develop precise plans of developmental measures, Germany also  presents financial assistance and is the second largest donor next to Japan. However due to cumulative efforts, India is limiting its dependence on donations to a point where such finances now only form a very minor proportion of the gross national income.

Indian investments in Germany

India has continually succeeded in creating profitable investments and trade opportunities in Germany as well. Due to the nature of the Indian market obviously, the most successful investments were imparted in consultancy, insurance and tele-communications sectors. The number and volume of Indian acquisitions to German based mid-cap businesses is snowballing.

Educational development, Science and technology

Indian-German relations in the educational sector are extensive and firm ground. Starting with prestigious scholarship and research organizations such as the German House of Research and Innovation with headquarters in New Delhi, The Indo-German Science and Technology Centre (IGSTC) in Gurgaon with co-funding from both governments with a funding capacity of € 4 million/annum, German language teaching institutes such as Goethe institutes and centers and high end German universities opening up branch campuses on Indian soil e.g. University of Göttingen and the Technical University of Munich. This solid academic and research foundation has yielded thousands of ground-breaking co-authored research exchange and mounted research expertise on both sides which proves an ultimate success of the this strategic partnership.

Environmental approach

Pressing challenges that face India on the environmental scope are related to environmental pollution. Whether poor quality air and water, poor sanitation and a general unfavorable public health environment, all need crucial and urgent intervention. Conversely, Germany being an outstanding “Green leader” has allocated funds to back up the resolution of these problems to attain worldwide thresholds that hold back the Indian economy from reaching its true potential and providing a respectable quality of life for its residents.

Future opportunities

According to extensive market analysis, experts forecast a continued momentum towards deeper relations between the two countries mainly in automotive industry co-investments, clean technology for water and waste management, renewable energies and pharmaceutical industry.


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