Context: 

Chancellor Scholz visited India on February 25, 2023, coinciding with the first anniversary of Russia’s war on Ukraine, which he called a ‘Zeitenwende’ or turning point.

Watershed moment in Germany’s security policy:

• Germany’s pledge to boost defence spending to 2% of GDP and provide special funding to bolster the country’s military.
• Russia’s war and China’s assertive posturing have brought Germany’s approach of Wandel durch Handel (change through trade), prompting a deep rethink of its energy and trade dependencies towards diversifying economic relations. 

Cooperation with India:

• Europe’s focus on values-based partnerships can boost cooperation between India and Germany. 
• The India-Germany Inter-governmental Consultations cover areas like defence, trade, clean energy, and the Indo-Pacific. 
• Germany’s shift towards India as a key partner in the Indo-Pacific is significant given its reliance on exports and the need for stable supply chains. 
• The country aims to enhance its strategic involvement in the region and has also agreed on triangular cooperation with India for development projects in third countries.

Defence links:

• New Delhi attempts to diversify from its military dependence on Russia and Berlin reassesses its long-standing arms exports policy.
• It could be around co-development of military hardware and tech transfers.
• Besides, the first ever France-India-Germany military exercise drill is slated to take place in 2024 towards enhanced security and defence collaboration.
• India and Germany also cooperate in multilateral forums, as part of the G-4 grouping pushing for United Nations Security Council reform.

Trade and technologies:

• Germany is India’s largest economic partner in the European Union (EU). 
• Collaboration in clean energy and green technologies has emerged as the central pillar in the partnership.
• The subject of mobility and migration was also under focus given Germany’s shortages of skilled manpower; where technically skilled Indians could help plug this gap.

Conclusion:

Against the backdrop of volatile geopolitical shifts, emerging multipolarity, and Europe’s enhanced courtship of India, India’s ties with Germany could be vital in shaping a new global order.

News Source: The Hindu