New Delhi: India and Germany are working closely to finalise a memorandum of arrangement for logistics arrangement between the armed forces. Germany is set to post a liaison officer at the Indian Navy’s Information Fusion Centre for Indian Ocean Region in Gurugram as it focuses on expanding maritime security cooperation.
Speaking at the India-German defence industry dialogue organised by the Society of Indian Defence Manufacturers, political director in the German Ministry of Defence, Jasper Wieck said, “A memorandum of arrangement for logistics arrangement between the armed forces for cooperation and joint exercises in one of the two countries or the surrounding maritime domains is in the works. With the likelihood that this arrangement will also facilitate co-development and co-production and joint research.”
Accompanied by eight senior Ministers, German Chancellor Olaf Scholz arrived in India on October 24, 2024 on an official visit. He is scheduled to meet Prime Minister Narendra Modi on October 25, 2024.
Japer Wieck said that pushing for co-development and co-production of defence equipment, they have specific areas in mind. Underwater technology, which brings in the Project-75I programme of the Indian Navy for six conventional submarines is one of them. Other areas are cruise missiles, with MBDA as a potential partner, and drones. An agreement for peacekeeping training agreement between respective agencies in both countries is also on the anvil.
He said that last week, the German Government had adopted a focus document on India which says that Germany wants to be a reliable partner to India.
According to officials, Germany is keen on repair and maintenance of German ships in the region in India, on the lines of UK and US, which have been leveraging the logistics agreement for this purpose. Stressing on the importance attached by Germany in deepening partnership with India, officials said that since the visit of German Defence Minister Boris Pistorius in June 2023, a lot of export licences have been given. Over 95% of the licences have been cleared, the German envoy Philipp Ackermann said on October 23, 2024.
Prime Minister Modi and German Chancellor Scholz will address the 18th Asia-Pacific Conference of German Business 2024 with about 800 CEOs of various companies attending. The two sides will hold talks as part of the 7th Inter-Governmental Consultations and a number of agreements are expected to be concluded. The discussions between Scholz and Indian Prime Minister Narendra Modi are expected to revolve heavily around defence cooperation, particularly Germany’s bid for the P75 (I) project.
At the 18th Asia-Pacific Conference of the German Economy (APK) in New Delhi, the spotlight will be on Germany and India’s strategic and economic partnership. The conference, which gathers leaders from politics and business across the Asia-Pacific region, serves as a platform for both nations to explore new avenues of cooperation, with a strong focus on trade. One of the key topics is the ongoing negotiations surrounding the EU-India Free Trade Agreement (FTA), which have faced significant challenges.
Germany’s Vice Chancellor and Federal Minister for Economic Affairs and Climate Protection, Robert Habeck, addressed the complexity of the FTA negotiations during his remarks at a press conference in New Delhi on October 24, 2024. “It’s better to take the steps, even if they are small, rather than standing still and not moving forward,” Habeck said, advocating for incremental progress in the negotiations.
Habeck’s comments on the EU-India FTA were part of a broader discussion on Germany’s evolving economic and strategic relationship with India. One notable area of change is Germany’s stance on defence exports to India. Historically reliant on Russian military supplies, India is now seeking to reduce its dependency on Moscow, opening the door for greater German involvement in India’s defence sector.
Replying to a question of German defence exports to India, Habeck stated that India no longer wants to source all its military goods from Russia, reflecting Germany’s readiness to support India’s defence needs. Although defence exports are a separate issue from broader trade relations, they are indirectly connected to the strategic partnership between the two nations. Habeck pointed out, “Since India does not live in a completely peaceful region, it needs weapons for self-defence, including submarines. And if we don’t want Russia to be the only supplier and for this dependency to grow even larger or for the relationship between the two to be continuously strengthened, then action must be taken accordingly.”
The APK 2024 provides a critical platform for Germany and India to strengthen their ties amid a rapidly changing global economic landscape. The Indo-Pacific region, according to Habeck, is “the most dynamic economic area in the world,” offering immense opportunities for German businesses to contribute to shaping the global economy of tomorrow. With the region at the centre of global value chains, Germany is keen to expand its partnerships in areas such as technology, digital transformation, and sustainable development.
For Germany’s trade strategy, the Asia-Pacific region, including India, is becoming increasingly important. The participation of key figures like Indian Prime Minister Narendra Modi and German Chancellor Olaf Scholz at APK 2024 underscores the importance of this conference in fostering deeper Indo-German cooperation.
Coinciding with the German Chancellor Scholz’s visit, a German frigate Baden-Württemberg and a tanker Frankfurt Am Main undertook a maritime partnership exercise with Indian Navy’s destroyer INS Delhi in the Indian Ocean. The exercises conducted include cross deck flying operations, underway replenishment, weapon firing and tactical manoeuvres, the Indian Navy said. “The maiden maritime partnership exercise in the Bay of Bengal is aimed at further strengthening the maritime connect between the two nations and interoperability between the navies,” it stated.
India has signed a series of logistics agreements with Quad countries, France, Singapore, South Korea and Vietnam among others. These administrative arrangements facilitate access to military facilities for exchange of fuel and provisions on mutual agreement simplifying logistical support and increasing operational turnaround of the military when operating away from India.
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