Foreign Policy Watch: India – Germany
With an eye on Indo-Pacific, Germany seeks greater defence ties with India
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Tarang Shakti;
Mains level: India and Germany Relations;
Why in the News?
External Affairs Minister S. Jaishankar, currently in Germany as part of a three-nation tour, met with German Foreign Minister Annalena Baerbock in Berlin. They discussed various defence topics, including Ukraine, Gaza, and the Indo-Pacific region.
Defence Partnership between India and Germany:
- Late Engagement: Germany has been late in engaging India’s defence interests compared to France and the U.S., who have stronger partnerships with India.
- Opportunity Post-Russia-Ukraine War: With Russia’s industrial capacity focused on the war, Germany sees an opportunity to enhance its defence exports to India.
- German defence manufacturers like ThyssenKrupp Marine Systems are already involved in projects like submarine construction for the Indian Navy.
- Technology Transfer: Technology transfer is a key condition for India’s defence partnerships, and Germany’s ability to meet this requirement could shape future cooperation.
- Complementary Systems: Germany’s Eurofighter and its future replacement by U.S.-made F-35s highlight Germany’s readiness to integrate its defence systems with Western platforms, easing potential interoperability issues for India.
Exercise Tarang Shakti:
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Present Dilemma of China:
- Germany’s Strategic Interest in the Indo-Pacific: China’s aggressive actions, such as building artificial islands in the South China Sea, pose a significant threat to regional stability, international shipping, and trade routes, which Germany heavily depends on.
- Germany’s Balancing Act: While Germany has clear political positions against China’s actions in the Indo-Pacific, its economic dependence on China complicates the situation. Germany’s increasing defence presence in the region is partly aimed at ensuring free and secure shipping routes.
- Europe’s Shift in Focus: Post Russia-Ukraine war, Europe, including Germany, is recalibrating its foreign policy towards the Indo-Pacific, recognizing the region as the future centre of global economic and geopolitical influence, which is driving greater German defence engagement in the region.
Way Forward:
- Enhance Defence Collaboration: India and Germany should focus on deepening defense cooperation, particularly in areas like technology transfer, joint military exercises, and advanced systems integration to build long-term strategic partnerships.
- Strengthen Indo-Pacific Engagement: Germany and India should align their Indo-Pacific strategies to ensure regional stability, emphasizing free trade routes and countering China’s assertiveness while balancing economic dependencies.
Mains PYQ:
Q To what extent can Germany be held responsible for causing the two World Wars? Discuss critically. (UPSC IAS/2015)
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Foreign Policy Watch: India – Germany
Green Hydrogen Mission: Five Priorities For The Vision
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green Hydrogen
Mains level: Green Hydrogen and Mission
Central Idea
- The 2023 Union Budget has allocated ₹19,700 crore for the National Green Hydrogen Mission. This will set in motion a programme that can position India as a green hydrogen (super)power.
What is Green Hydrogen?
- Clean and no harmful gas emission: The Green hydrogen is the one produced with no harmful greenhouse gas emissions.
- Produced by electrolysis of water: It is made by using clean electricity from surplus renewable energy sources, such as solar or wind power, to electrolyse water. Electrolysers use an electrochemical reaction to split water into its components of hydrogen and oxygen, emitting zero-carbon dioxide in the process.
- Clean energy source: It can serve as an energy source (heavy industry, long-distance mobility, aviation, and power storage) and an energy carrier (as green ammonia or blended with natural gas).
- Energy intensive process: It is an energy-intensive process for splitting water into hydrogen and oxygen using renewable power to achieve this.
All you need to know about National Green Hydrogen Mission
- The National Green Hydrogen Mission is a program launched by the government of India to promote the production and use of green hydrogen in the country.
- It aims to establish India as a leading producer and consumer of green hydrogen. The mission is expected to create demand for 100-125 gigawatts (GW) of renewable energy, 60-100 GW of electrolysers, and an investment opportunity of ₹8 lakh crore, while cutting 50 MMT of annual emissions.
Why is this important and what will it take?
- India’s ambitious renewable energy goal for 2030: By 2030, India aims to generate 50% of its electricity from non-fossil fuel sources, while also requiring an industrial energy transition.
- Industrial sectors contributing to India’s greenhouse gas emissions: Steel, cement, fertilizers, and petrochemicals contribute significantly to India’s industrial greenhouse gas emissions.
- Green hydrogen’s potential for fuelling industrial growth and reducing emissions: Green hydrogen has the potential to fuel industrial growth and reduce industrial emissions simultaneously.
- India’s production target for green hydrogen and its requirements: India has set a production target of five million tonnes of green hydrogen by 2030, surpassing that of any other single economy. This target would create a demand for 100-125 GW of renewable energy, 60-100 GW of electrolysers, and an investment opportunity of ₹8 lakh crore, while reducing annual emissions by 50 MMT.
- India’s advantage as a cost-effective green hydrogen producer: India’s abundance of sunshine and wind energy resources position it well to become one of the world’s most cost-effective green hydrogen producers.
Five Priorities(5Ps): For the vision to convert into reality
- Domestic demand is critical: If we are not a big player domestically, we cannot be a major player in the international market. The mission introduces a Strategic Interventions for Green Hydrogen Transition (SIGHT) fund for five years, with ₹13,000 crore as direct support to consume green hydrogen. This will encourage heavy industries to increase demand, offering economies of scale by which suppliers can reduce prices.
- India can be an attractive destination for domestic and foreign investment: Green hydrogen production projects announced/underway in India are far fewer compared to others. Green hydrogen is difficult and expensive to transport. The mission envisions green hydrogen hubs to consolidate production, end use and exports. A mission secretariat can ensure project clearance is streamlined and reduce financial risks.
- Support and targeted funding: Currently, manufacturers are importing stacks and assembling them. We must become more competitive with targeted public funding in manufacturing the most critical and high-value components of electrolysers in India.
- Establish bilateral partnerships to develop resilient supply chains: Globally, about 63 bilateral partnerships have emerged; Germany, South Korea and Japan have the most. Using yen- or euro-denominated loans for sales to Japan or to the EU, respectively, could reduce the cost of capital and help us become export competitive. India must cooperate with like-minded countries on trade, value chains, research and development, and standards
- Coordinate with major economies to develop rules for a global green hydrogen economy: In the absence of common global frameworks, attempts for rules and standards are being driven by collectives of private corporations rather than through structured intergovernmental processes. There are already signs of conflicting regulations and protectionist measures in major markets. These put India’s ambitions at risk.
What is Green Steel?
- Green steel refers to steel that is produced using sustainable and environmentally friendly methods.
- Green steel, is produced using renewable energy sources, such as wind and solar power, and by utilizing low-emission technologies that reduce carbon emissions.
- One of the main ways to produce green steel is through the use of hydrogen instead of coal or natural gas as the reducing agent in the steel-making process.
- Green steel is seen as a way to reduce the environmental impact of the steel industry, which is responsible for a significant portion of global carbon emissions.
- Costs of green steel, made from green hydrogen, are currently much higher, but could be reduced with economies of scale and changes in production technologies
Conclusion
- India’s G20 presidency is an opportunity to craft rules for a global green hydrogen economy. These rules must address operational threats, industrial competitiveness and strategic threats. India should promote a global network on green hydrogen via which companies could collaborate. Green hydrogen will be a critical industrial fuel of the 21st century. India is well-positioned to show leadership in our collective interest and that of the planet.
Mains Question
Q. What is National Green Hydrogen Mission launched by the government of India? Discuss the key priorities of the mission that will they help India achieve its ambitious production target.
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Foreign Policy Watch: India – Germany
India-Germany Relations: Opportunities and Challenges
Note4Students
From UPSC perspective, the following things are important :
Prelims level: NA
Mains level: India-Germany Relations Green Hydrogen Mission
Central Idea
- India and Germany are enhancing their relationship through bilateral talks and collaboration, with Germany showing interest in being a key partner in India’s defence, trade, and clean energy. The recent visit of German Chancellor Scholz to India highlights the importance of India-German cooperation in shaping a new global order.
India-Germany Relations: Background
- Freedom struggle: Subhas Chandra Bose, a prominent freedom fighter for Indian independence, made a determined effort to obtain India’s independence from Britain by seeking military assistance from the Axis powers. The Indische Legion was formed to serve as a liberation force for British-ruled India principally made up of Indian prisoners of war.
- Diplomacy: India maintained diplomatic relations with both West Germany and East Germany and supported their reunification in 1990. Contrary to France and the UK, Germany has no strategic footprint in Asia.
- Past contentions: Germany condemned India for liberating Goa from Portuguese rule in 1961 and supported Portugal’s dictatorial regime under Salazar against India. It was critical of India for intervening in the 1971 Bangladesh Liberation War. It rejected India’s 1998 nuclear tests.
- Quest for UNSC: India and Germany both seek to become permanent members of the UNSC and have joined with Japan and Brazil to coordinate their efforts via the G4 collective.
- Cultural ties: Germany has supported education and cultural programs in India. Germany helped establish the IIT Madras after both governments signed an agreement in 1956 and increased its cooperation and supply of technology and resources over the decades to help expand the institution
- Trade and investment: Germany is India’s largest trading partner in Europe. Germany is the 8th largest foreign direct investor (FDI) in India.
What is the significance of Chancellor Scholz’s visit to India?
- Chancellor Scholz’s visit to India is significant as it builds on Germany’s growing political outreach to Asia and highlights India’s importance as a key partner in Germany’s overall strategy for the Indo-Pacific region.
- The visit aimed to expand cooperation between India and Germany in areas such as defence, trade, clean energy, migration, digital transformation, and the Indo-Pacific.
- It also assumes greater importance as India holds the G-20 presidency this year and seeks to avoid geopolitics hampering cooperation in the forum.
India-Germany Cooperation: Opportunities
- Defence collaboration: Germany could become an important defence partner for India as the country attempts to diversify from its military dependence on Russia. The two countries have discussed co-development of military hardware and tech transfers, and a deal worth $5.2 billion where Germany would jointly build six conventional submarines in India could be underway.
- Economic ties: India and Germany share strong economic ties, with Germany being India’s largest trading partner in the European Union. Germany is also interested in stability of supply chains and trade routes linking Asia to Europe, given its status as Europe’s economic powerhouse and its reliance on exports.
- Indo-Pacific region: Germany’s overall strategy for the Indo-Pacific region mentions India as a key partner. Germany has enhanced its political outreach to Asia, including India, as part of this strategy.
- Multilateral cooperation: Both cooperate in multilateral forums, including as part of the G-4 grouping pushing for United Nations Security Council reform, and as evident in Germany’s invitation to Mr. Modi to attend last year’s G-7 summit.
- Development projects: A recent agreement on India-Germany triangular cooperation involving development projects in third countries is an important step in enhancing strategic involvement in the region.
- Security collaboration: The first ever France-India-Germany military exercise drill is slated to take place in 2024 towards enhanced security and defence collaboration.
India-Germany Cooperation: Challenges
- Different geopolitical priorities: Germany is focused on ensuring stability in the Indo-Pacific region for the sake of trade and economic growth, while India is more concerned with territorial conflicts with neighbouring China.
- Germany’s economic dependence on China: Germany has strong economic ties with China, making it difficult to completely decouple from the country. This creates a challenge for Germany in trying to balance its economic interests with its security interests.
- Differences in defence capabilities: India and Germany have different defence capabilities and priorities, which can make it challenging to collaborate effectively on defence projects.
- Historical baggage: Germany’s colonial past and role in World War II can create challenges in developing closer relations with India, particularly in the context of Germany’s efforts to deepen its involvement in the Indo-Pacific region.
Conclusion
- Amidst geopolitical shifts and multipolarity, New Delhi’s ties with Berlin could be vital in shaping a new global order. There are high expectations on both sides regarding the potential for deeper collaboration, particularly in the defence sector. However, it will take time and effort to develop the necessary trust and alignment of interests.
Mains Question
Q. In recent times, India and Germany have been enhancing their relationship through bilateral talks and collaboration. In light of this, discuss challenges and opportunities that lie ahead?
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Foreign Policy Watch: India – Germany
India-Germany relations
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Green Hydrogen Task Force
Mains level: Paper 2- India-Germany relations
Context
Prime Minister Narendra Modi’s visit to Berlin for the sixth Indo-German Inter-Governmental Consultations (IGC) is significant for its timing and substantial results.
Strategic and economic importance of India-German ties
- The timing of the IGC, which Germany chose not to delay, showed outreach to India and the Indo-Pacific.
- Impact of pandemic on economy: The pandemic hit German economy and sanctions on Russia will further dent its prospects.
- The country requires new markets for trade and investment.
- India is an important partner in this regard due to its sustained economic growth and market size.
- Ukraine crisis: The Ukraine crisis created an urgency to engage with India as part of Germany’s fledgling Indo-Pacific policy.
Opportunities for India
- As Germany does the reassessment of China’s role in world affairs it creates an opportunity for India.
- The Bundestag will discuss the situation of Uyghurs in China’s Xinjiang on May 7.
- Any departures from China will bring business engagement to India.
- Germany and India do not have a traditional strategic partnership.
- It is a green partnership based on trade, investment, technology, functional collaboration, skill development, and sustainability.
- There are several initiatives like the Indo-German energy forum, environmental forum, partnership on urban mobility, skill development and science and technology.
- The biggest gain from the IGC has been the Joint Declaration of Intent (JDI) establishing the Green and Sustainable Development Partnership.
- This will raise the quality and quantum of the existing partnership between the two countries.
- Germany is reaching out with new and additional financing of €10 billion to fund green projects in India under public, private and PPP models.
- To support this, a ministerial segment is being introduced under the IGC.
- The IGC is the only such format that India has with any country.
- Another significant development is the JDI on Triangular Development Cooperation for projects in third countries.
- This will provide avenues to work together in the Indo-Pacific, Africa and beyond.
- The Indo-German Education Partnership, which the German Bundestag passed in 2016 as a New Passage to India, has borne fruit — from about 4,000 students in 2015, there are nearly 29,000 Indian students in Germany.
- The Indo-German Science and Technology Centre has made valuable contributions.
- Now, under the energy partnership, the Green Hydrogen Task Force will develop a Green Hydrogen Roadmap.
- This will attempt to take R&D to the level of commercialisation.
- The JDI on migration and mobility is an important step taken during this IGC.
Conclusion
A new period is reflecting new priorities in view of crises like the pandemic, the economic downturn and now, Ukraine. The German response to India as evidenced through the IGC has been promising. Both sides may justifiably call it a defining moment in the Indo-German partnership.
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Foreign Policy Watch: India – Germany
How India and Germany can work together to tackle climate change?
Note4Students
From UPSC perspective, the following things are important :
Prelims level: Not much
Mains level: India-Germany relations
Both nations, India and Germany with innovative economies and many highly-trained people can tackle the climate challenge.
India-Germany Relations: A backgrounder
Freedom struggle: Subhas Chandra Bose, a prominent freedom fighter for Indian independence, made a determined effort to obtain India’s independence from Britain by seeking military assistance from the Axis powers. The Indische Legion was formed to serve as a liberation force for British-ruled India principally made up of Indian prisoners of war.
Diplomacy: India maintained diplomatic relations with both West Germany and East Germany and supported their reunification in 1990. Contrary to France and the UK, Germany has no strategic footprint in Asia.
Past contentions: Germany condemned India for liberating Goa from Portuguese rule in 1961 and supported Portugal’s dictatorial regime under Salazar against India. It was critical of India for intervening in the 1971 Bangladesh Liberation War. It rejected India’s 1998 nuclear tests.
Quest for UNSC: India and Germany both seek to become permanent members of the UNSC and have joined with Japan and Brazil to coordinate their efforts via the G4 collective.
Cultural ties: Germany has supported education and cultural programs in India. Germany helped establish the IIT Madras after both governments signed an agreement in 1956 and increased its cooperation and supply of technology and resources over the decades to help expand the institution
Trade and investment: Germany is India’s largest trading partner in Europe. Germany is the 8th largest foreign direct investor (FDI) in India.
Common concerns
- In South Asia and Europe, we have become used to extremely hot weather, flooding, dramatic depletion of groundwater tables, and drought.
- The EU has adopted an ambitious Green Deal to achieve net-zero greenhouse gas emissions by 2050 and to decouple economic growth from the consumption of natural resources.
Why the two?
- India is one of few countries that looks set to deliver on the national goals it set itself as part of the Paris agreement.
- Compared to other G20 countries, its per capita emissions are very low.
- Germany recently adopted laws on reducing greenhouse gases more quickly, achieving climate neutrality by 2045 and stopping the use of coal for electricity production by 2038.
Collaborated efforts to date
- In 2015, India’s PM and Germany’s Federal Chancellor agreed to further strengthen the two countries’ strategic partnership.
- On this basis, Germany and India have succeeded in building up a cooperation portfolio worth almost 12 billion euros.
- Already, nine out of 10 measures support climate goals and SDGs together.
Indo-German development cooperation focuses on three areas:
- Transition to renewable energies
- Sustainable urban development and
- Sustainable management of natural resources
What does Germany have to offer?
- As a pioneer of the energy transition, Germany is offering knowledge, technology transfer, and financial solutions.
- The pandemic has shown global supply chains are vulnerable.
- Yet, when it comes to agriculture and natural resources, there are smart solutions that are being tested in India and Germany for more self-reliance, including agroecological approaches and sustainable management of forests, soils, and water.
- Experience in India has shown that these methods also boost incomes for the local population and make them less dependent on expensive fertilizers, pesticides and seeds.
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