October 24, 2024: In a significant diplomatic move, German Chancellor Olaf Scholz is set to embark on a three-day visit to India beginning Thursday, seeking to cultivate the country as a key ally in trade and geopolitics amid deteriorating relations with China. Scholz's visit is accompanied by a large delegation of ministers and business executives, aiming to forge a strategic partnership with Prime Minister Narendra Modi.
The two leaders are scheduled to meet on Friday morning, where they will chair a joint cabinet meeting. This visit comes at a critical juncture for Scholz, who faces challenges in reviving the German economy, which has been impacted by the ongoing war in Ukraine and increased competition from China.
Modi has just returned from the BRICS summit in Russia, where he met with President Vladimir Putin, and India has recently signed a border agreement with China to ease tensions following a prolonged standoff. As India enhances its defense capabilities—planning to acquire six new submarines to counter China's expanding naval presence in the Indo-Pacific—Germany’s Thyssenkrupp AG is vying for a substantial $4.8 billion contract for this order. However, German government spokesperson Christiane Hoffmann refrained from commenting on whether a decision would be made during the visit.
During their discussions, Scholz is expected to address the war in Ukraine, a topic of significant concern given India's historical ties with Russia. Reports have surfaced indicating that India is supplying military equipment to Russia, which complicates its potential alignment with Germany.
As Germany seeks to reduce its reliance on Chinese trade, many view India, the world’s fifth-largest economy, as a viable alternative. However, India’s recent diplomatic maneuvers suggest a cautious approach to deepening ties with Germany. Despite the complexities, Germany remains India's largest trading partner in Europe, with bilateral trade reaching $22 billion in the 2020-21 fiscal year.
Scholz's visit represents a pivotal opportunity for both nations to navigate the shifting geopolitical landscape and explore avenues for cooperation, even as historical ties and current alliances shape their interactions.