The India-European Union (EU) Free Trade Agreement could be wrapped up by the end of the year or early next, is the buzz in diplomatic circles. But it may not be a comprehensive one, rather something more limited in scope.
StratNewsGlobal learns that aside from top EU leaders gracing the Republic Day celebrations in January, there could be a high level visit from Germany in February, perhaps Chancellor Friedrich Merz no less.
The visit could see forward movement on India’s plans to buy and build the German Type 214 conventional submarine with air-independent propulsion. The word is Berlin is keen to get this project going for obvious reasons.
“The submarine project is the biggest defence deal between India and Germany,” sources said, adding that “it will be G2G Government to Government, a first for Germany.”
Germany is also looking at sourcing from India and there were discussions on common projects in the military domain during the visit of Defence Minister Boris Pistorius last week.
The visits that have already happened and those due to happen confirm one point: Germany’s interest in India is growing. With around 2000 German companies doing business in this country and bilateral trade at a little over $33 billion (according to figures of the Indian Embassy in Berlin), the relationship can only grow.
There’s a lot of interest in Indian small and medium enterprises, that form the backbone of business and industry in Germany. It was confirmed that the German Embassy in Delhi and German companies are talking to several Indian SMEs with a view to investment and other collaborations.
“The movement of skilled Indian labour has been helped by Germany’s requirement of skilled labour and not only in IT,” said a source, who also confirmed that “Germany was working on training Indians in being able to speak and understand German. Working with the states on this issue.”
It was also pointed out that the German Far Right has no issues with the entry of skilled Indian labour into the country. But the source also flagged a point of concern: the movement of labour from states like Punjab to Germany, ostensibly to study but actually to work. The food delivery business in Berlin, for instance, is dominated by Punjabis.
It is a job that requires no skills and while there are no complaints from Berliners now, that could change if large groups of such workers are seen in public, hanging out at intersections, doing nothing or getting into trouble with the police.
As it is, Germany is paying welfare benefits to one million Ukrainian refugees in the country. It is a financial strain which could be increasingly unaffordable, reason why Berlin is keen for the Ukraine war to end and see the refugees go home.
Thirty eight years in journalism, widely travelled, history buff with a preference for Old Monk Rum. Current interest/focus spans China, Technology and Trade. Recent reads: Steven Colls Directorate S and Alexander Frater's Chasing the Monsoon. Netflix/Prime video junkie. Loves animal videos on Facebook. Reluctant tweeter.
