The volatility and uncertainty on the global landscape is a compelling reason for deeper cooperation between India and Europe and the two sides should speedily conclude a free trade deal to stabilise the global economy, external affairs minister S Jaishankar and his German counterpart Johann Wadephul said on Wednesday.
India and Germany intend to double bilateral trade from the current level of about 50 billion euros, the two ministers told a media briefing after their talks, playing up convergences such as both countries wanting a rules-based and peaceful global order despite differences on issues such as the war in Ukraine.
“We are seeing very sweeping changes on the global strategic landscape, we’re also seeing a lot of volatility on the global economic landscape,” Jaishnakr said. “And I think together they make a very powerful case for India and the European Union (EU) and India and Germany to work much more closely with each other.”
Wadephul added: “I believe India and Germany are playing in the same team. That is something I welcome and think is good in these uncertain and turbulent times.”
Both ministers underlined the importance of concluding negotiations for an India-EU free trade agreement within the target of the yearend set by the leadership of the two sides. Wadephul said Germany hopes the FTA can be speedily negotiated and concluded before the end of this year. “If others set up impediments to trade, we should respond by lowering these impediments and hurdles,” he said.
India, Jaishankar said, would like the negotiations to move to a “decisive conclusion in the coming days” as the FTA will help stabilise the global economy. “It will be kind of one of the elements of a ballast which today the world economy really needs,” he said against the backdrop of the strains created by the trade and tariff policies of the US administration.
The focus of the discussions between the two ministers was on boosting cooperation in trade, defence, green energy, semiconductors, future technologies, education and mobility. Jaishankar pointed to an uptick in defence and security cooperation and said Germany had addressed India’s concerns about “significant export control difficulties” in the defence sector through expeditious clearances.
However, Wadephul, who was accompanied by a large business delegation, said India needs to reduce “market access restrictions” in order to tap the enormous potential of enhanced economic ties. Jaishankar said the Indian government is committed to improving the ease of doing business and will give special attention to any concerns German companies have about operations in the country.
In an important announcement, Jaishankar said the two sides had agreed to grant gratis visas for short-term school and college visits to promote student exchanges.
Wadephul noted that Germany is already home to almost 60,000 Indian students, the largest group of international students, and both sides want to create more opportunities for Indian skilled labour and students to come to Germany.
“Many of them choose to stay because we urgently need highly skilled and highly qualified labour,” Wadephul said. “Indian skilled workers in Germany are successful in their jobs, earn above-average income and show above-average integration. They are an asset for the German labour market.”
Jaishankar thanked Germany for its support in India’s fight against terrorism.
“We greatly value the understanding that Germany has shown with regard to India’s fight against terrorism. Minister Wadephul has himself been explicit about our right to defend our people against terrorist attacks,” he said.
Wadephul added, “I assured you…that when it comes to India defending itself against terrorism, Germany continues to be firmly at your side.”
The Indian side also raised the issue of Ariha Shah, an Indian child taken away by German authorities from her parents at the age of seven months after she suffered an accidental injury. The child was placed in the custody of Germany’s Jugendamt on September 23, 2021, and has been in foster care since them.
“I underlined to the minister that it is essential that her cultural rights are ensured, and she grows up in Indian surroundings. So this matter needs to be resolved without further delay,” Jaishankar said.