|
Round The World
New Delhi, 6 November 2019
Angela Merkel in Delhi
RESETTING TIES WITH CHINA ANGLE
By Dr. D.K. Giri
(Prof. International Politics, JMI)
The German Chancellor
Angela Merkel was in Delhi to co-chair the Fifth Biennial Inter Governmental
Consultation (IGC) with Prime Minister Narendra Modi. The bilateral summit is
meant to review and enhance relations between the two countries. The Chancellor
was accompanied by 12 Cabinet ministers, secretaries and a big business
delegation. Some 20 agreements and five Joint Declarations of Intent were
signed: covering trade, investment, regional security, climate change and
artificial intelligence.
Note that Merkel has
been in India four times – 2007, 2011, 2015, and 2019 as she is into her 4th
term in the office. She is a formidable leader of the most powerful economy of
Europe. Despite the huge problem of migration in her country and humungous
economic challenges in most of Europe, she survives as the Chancellor of Germany
and the leader of the European Union. With such a strong leader and powerful
economy, how is India dealing?
What have we gained
from her four visits and our PM’s equal number of visits to Germany? Obviously,
not enough. Compare the trade figures of Germany with India and China,
China-Germany trade is $192 billion, and India-Germany is $22 billion. China
runs a trade surplus with Germany of $13 billion, whereas India has a deficit
of $5 billion or more. Furthermore, China now is the biggest trading partner of
Germany, surpassing the United States, and India ranks 25th amongst
Germany’s trading partners.
Admittedly, China
opened up its economy much earlier than India and has built a big manufacturing
hub for the world. But, India has big a market and human resource as those of
China. Heiko Mass, the German Foreign Minister, accompanying Merkel described
India as a pillar of stability in South Asia. It would be dangerous from a
European point of view to construct an Asia policy too much on China especially
as we have a partner in India that is much closer to our values and our
understanding of democracy.
Similar sentiments
were expressed days before Merkel’s visit to India, in the German Parliament
which called for upgrading bilateral ties with India. Johan Wadephul, Deputy
Leader, Joint Parliamentary Party of CDU, and its Bavarian sister party
Christian Social Union, said, “We in Germany as well in Europe have so far
focused more on China, while underestimating the significance of India. As the
world’s largest democracy India is a natural partner of Germany within the
larger alliance of multilateralists concerned about China”. Merkel herself said
on the eve of her visit, “Discussion will be conducted always with a view of
China”.
Why does India lag so
far behind? Also, if India wants to become a 5-trillion economy sooner than
later, doing business with countries like Germany would help her meet that
ambitious target.
One plausible
explanation for such slow growth in trade is New Delhi’s over-emphasis on
terror and security across the globe, with each country it deals with, and
diluting the ties in trade and economy. Our pre-occupation with Kashmir and
‘obsession’ with Pakistan impel such a security-driven foreign policy.
Apparently, in the
aftermath of defanging of Article 370, we seem to be content in getting an
endorsement from each country that matters, and each leader who visits our
country, that the happenings in Kashmir are an internal matter of India. Even
Germany had to issue a statement to that effect before Merkel flew from
Germany.
We must ask ourselves
if this is the right approach, Germany has little security footprint in South
Asia. German soldiers are not interested or equipped to participate in
international conflicts etc. So is it wise to engage Germany in security
situation of the sub-continent?
Germany is a mighty
economy. Why not we try to draw on Germany’s economic and technological
strengths for our growth and development? Germany has successfully replaced the
fossil fuel and nuclear energy with renewable energy, with involvement of small
and medium sector, generating green jobs etc. We have huge renewable resources;
we are the convener of International Solar Alliance. Are we trying to nudge
Germany and its companies in investing in renewable energy sector?
It is in fitness of
things that Merkel announced one billion Euros into green projects in India.
She placed climate change and RE at the centre of her talks in New Delhi. We
should grab this opportunity with both hands and do more with Germany in this
field.
From Germany’s point
of view, they are looking at India as an option for business diversion if
things got worse and unfavourable in China, either due to continuing US-China
trade war, or the internal implosion in China. Many perceptive observers argue
that Chinese authoritarian regime will fall sooner than later under its own
contradictions, be it Hong Kong, Tibet, or Xinjiang. Germany should also be
wary of China’s territorial disputes with a number of countries. Should the
investors fold up in China, will India be the preferred alternative
destination.
Also India’s growing
market and stable multi-cultural democracy should be a surer bet for Germany.
Having suffered several devastating wars caused by dictatorships, etc. Germany
should be cognisant of political authoritarianism backed by economic
imperialism, a lethal combination in world politics.
Compared to China,
India possesses greater political goods. But India falters when it comes to
economic competitiveness and creating conducive investment climate. German
companies over 700 operating in India, see the huge market, but face the red
tape, corruption and lack of adequate physical infrastructure. Such fault-lines
need to be soon corrected. The need of the hour is to bring in structural
reforms, change the complex labour laws, and land-ownership regulation etc.
Germany is by far the
best country to try a pure economic approach. The European Union led largely by
Germany would like to do business with India, as the social-political structure
of the European Union is akin to those of the Union of India. Merkel urged that
the India-European Free Trade Agreement needs a fresh attempt.
EU’s grievance is
India’s non-economic, bureaucratic approach to trade and commerce. At one point
in 1960s, the Indian Trade Centre in Brussels was run by bureaucrats, much to
the discomfiture of European Union. The EU had made a formal request to GOI, to
appoint technocrats in such positions. As I was doing my research on India and
the European Union, the officials in Brussels shared this anecdote and commented
that India is more political & less business-like.
Of all the countries
in Europe, Germany typifies the economic culture in the European Union. One
senior Indian diplomat told us in Paris, earlier our mandate was security and
defence deals, now it is trade and commerce. But the strategy shift does not
reflect on our trade figures.
It is time to
re-focus on economy in our foreign policy. We could talk terror in passing with
Germany, but stress on trade and investment and make Germany our strategic ally
in building our economy, to 5-trillion or more. Germany known for its straight
talk, wants to be a part of ‘New India’ growth and welcomes India as a
economic-political counter-weight to China. Are we ready to take this offer?---INFA
(Copyright, India
News & Feature Alliance)
|
Archives 
