Modi avoids judgment on Kremlin
Scholz courts India’s prime minister in Berlin
May 2, 2022, 6:49 p.m
Shortly after his trip to Japan, Chancellor Scholz receives Indian Prime Minister Modi. Although Germany and India are not on the same wavelength when dealing with Russia’s war of aggression, the world’s largest democracy could become an alternative to system rival China.
Despite differences in the Ukraine war, Germany and India want to work more closely together. At a joint appearance in Berlin, both Chancellor Olaf Scholz and India’s Prime Minister Narendra Modi emphasized the intention for a deeper strategic partnership. Scholz announced that the federal government wants to make ten billion euros available by 2030 for cooperation in various fields such as climate protection and the expansion of renewable energies. Modi emphasized that his first trip abroad since the Corona pandemic took him to Berlin.
Both heads of government tried to highlight common ground. The Indian side therefore also rejected questions at the press conference. Because there are differences, for example about the Ukraine war. While Scholz again accused Russia of violating international law and called on Russia to end the war immediately, Modi spoke of the fact that there would be no winners, only losers. Developing countries in particular would suffer from the consequences such as price increases and delivery bottlenecks.
India buys Russian oil
India, which gets a significant portion of its arms from Russia, has been trying to maintain a neutral stance since the Russian invasion began. While western countries are phasing out imports of coal, oil and natural gas from Russia, India has increased its oil imports from Russia. One reason is the significant discounts that Russia grants. In mid-March, the Reuters news agency learned from insiders that India intends to use the current turmoil in the wheat market to gain market share. For its part, the government in Moscow is courting India in order to circumvent western sanctions. However, India also has good relations with the West. Most recently, the country has only strengthened its cooperation with the USA.
Without criticizing India directly, Scholz appealed for democracies around the world to work more closely together. “We must understand democracy as a concern of humanity that unites us and for which we bear responsibility,” said the Chancellor. The Federation of German Industries (BDI) described India’s neutral stance on the Russian attack on Ukraine as an obstacle to economic and political cooperation. “The West must reckon with the fact that India will not be assigned to any camp in an increasingly bipolar world order,” said Wolfgang Niedermark, member of the BDI executive board.
Both governments signed a series of memoranda of understanding for closer cooperation. This includes an agreement on closer cooperation in the use of hydrogen, for which a task force is to be set up. In addition, both countries are planning a security agreement and encrypted direct connections between the foreign ministries of both countries. Scholz emphasized that for the first time the government had also concluded a comprehensive mobility and migration agreement with a country of origin of migrants. The 17,000 Indian students at German universities are welcome regardless of their degree. Germany has also been looking for skilled workers in India for years.
Growth market India: alternative to China
The country with around 1.4 billion inhabitants is considered a major growth market. However, bilateral trade is still relatively low at 27.6 billion euros in 2021. The German economy complains about significant restrictions on market access: the machine builders, for example, are demanding a reduction in industrial tariffs. Modi pointed out that India currently has the highest growth rates among the developed economies. He also attended a closed-door business meeting in the afternoon.
The meeting with Modi was the chancellor’s second in-depth exchange with an Asian country in just a few days. Scholz visited Japan last week. The trip caused a stir because, unlike his predecessors Angela Merkel and Gerhard Schröder, the social democrat did not travel to China first. Germany and other Western countries see Beijing as a system rival.
India is the second most populous country in the world and the largest democracy in the world. Alongside Indonesia, Senegal and South Africa, it is now one of the four countries that Scholz invited to the G7 summit at Schloss Elmau in Bavaria. In addition to Germany, the G7 also includes the USA, France, Great Britain, Italy, Japan and Canada.