Growing warmth: Modi-Merkel tee off to a new chapter in Indo-German ties

If diplomacy is all about symbolism (which indeed it is) then German Chancellor Angela Merkel came up with a masterstroke by personally returning to Prime Minister Narendra Modi on Monday a 10th century Durga idol which had gone missing from a temple in Kashmir over two decades back and was later found in that country. This is a rare gesture and off-hand one cannot remember a similar diplomatic symbolism by a top foreign leader to an Indian prime minister ever in the past. Merkel’s gesture set the trajectory of not only her three-hour-long talks with PM Modi but also sent out a clear message to the international community how greatly she values Germany’s ties with India. It is also a tremendous personal achievement for PM Modi. [caption id=“attachment_2455498” align=“alignleft” width=“380”]  PM Narendra Modi (left) with German Chancellor Angela Merkel. PTI[/caption] If this diplomatic symbolism was an appetiser, the main course was made all the more mouth-watering by concrete deliverables that flowed from the Modi-Merkel talks. No, it’s just not about the number of agreements/MoUs the two sides signed on Monday (18 to be precise) because if that were the criterion then China will beat everyone hands down as the Chinese are known to sign over two or even three dozen agreements during their presidential and prime ministerial visits abroad. Here were Modi and Merkel teeing off to a new chapter in Indo-German bilateral ties, 14 years after the two countries started their “strategic partnership”. This was their second one-on-one meeting in six months. The two leaders also co-chaired the 3rd India-Germany Inter-Governmental Consultations. Incidentally, Merkel has visited twice earlier as German Chancellor during the UPA 1 and UPA 2 regimes but the kind of warmth that was all too visible between the German Chancellor and the Indian Prime Minister was not to be seen during her two previous visits. This obviously augurs well for India as Germany is Europe’s number one economy, India’s largest trading partner in European Union, the seventh largest foreign investor in India, and now – as today’s Modi-Merkel summit indicated – also a potential game changer in India’s relations with EU. Here are the five big takeaways from the Modi-Merkel summit. 1. Boost worth two billion euros ($2.36 billion) for clean energy: The two leaders agreed on the India-Germany Climate and Renewable Alliance for combating climate change. Germany will provide India with €1 billion, each, for India’s Green Energy Corridor project and country-wide solar projects. “I admire German leadership in clean energy and commitment to combating climate change,” Modi said at a joint press conference with Merkel after the summit. 2. In a first, India will fast-track approvals to German companies: The two countries signed an agreement to fast-track business approvals, a first of its kind agreement that will make it easier for German companies to operate in India. This obviously will go a long way in perking up the manufacturing and investment climate in India and provide a huge boost to PM Modi’s pet project “Make in India”. It envisages single point clearance for German companies for various projects and encourage more and more German companies to invest in Asia’s third largest economy. Significantly, the Modi government got a thumbs up from Merkel who made the following remark at the joint press conference: “The speed at which you grant licences has increased, which is a good thing.” The Joint Statement noted that “Make in India” and other initiatives of the Indian government had the potential to open up investment opportunities for German companies. 3. Indo-German ties are now far more intensive and broad-based: This is reflected by the signing of 18 MoUs which include such diverse subjects as security cooperation, solar energy partnership, cooperation in the field of skill development and vocational education and training, railways and cooperation in disaster management. Besides, both sides have also agreed to boost partnership in areas of defence manufacturing, trade in advanced technology, intelligence, and countering terrorism and radicalism. PM Modi put this in perspective with his following remark: “Our focus tends to be on economic ties. But, I believe that in a world of seamless challenges and opportunities, India and Germany can also be strong partners in advancing a more human, peaceful, just and sustainable future for the world.” 4. Germany to be a catalyst in revising stalled India-EU Free-Trade talks: Support of Germany in expediting and early conclusion of India-EU Free Trade Treaty is hugely important as India cannot become a major export power without signing this document with EU. The joint statement, released after their talks, underlines Modi and Merkel pushing for a revival of free trade talks between India and European Union at the earliest opportunity. “They … underlined their sustained commitment to a comprehensive trade and investment agreement between the EU and India, and committed themselves to bringing about the earliest possible resumption of talks,” the joint statement said. 5. Germany supports India’s increasing role in international platforms: Germany welcomed India’s intensified engagement with the various export control regimes – the Nuclear Suppliers Group (NSG), the Missile Technology Control Regime (MTCR), Australia Group and the Wassenaar Arrangement. Merkel also assured Germany’s support for India’s permanent seat at the UN Security Council.