Germany’s newly launched ‘Focus on India’ strategy aims to elevate Indo-German relations to unprecedented levels, with a focus on key sectors like foreign policy, climate action, sustainable development, and skilled labor mobility. Approved by Chancellor Olaf Scholz’s Cabinet, this initiative seeks to leverage India’s role as the world’s fifth-largest economy and a stabilizing force in an increasingly complex geopolitical landscape. By fostering closer bilateral cooperation, Germany aims to enhance trade, technological innovation, and security partnerships.
Central to this effort is the Indo-German Green and Sustainable Development Partnership, which promotes renewable energy investments, skill development, and technical expertise in solar power systems. The strategy underscores India’s significance in shaping the Global South’s policy direction while offering Germany an opportunity to diversify from reliance on China in sectors like solar energy. This comprehensive approach highlights mutual benefits and affirms both countries’ commitment to advancing global climate goals and sustainable growth.
Germany’s newly introduced ‘Focus on India’ strategy marks a significant turning point in Indo-German relations, positioning India as a crucial partner in addressing global challenges and fostering mutual prosperity. Approved by the German Cabinet under the leadership of Chancellor Olaf Scholz on October 16, 2024, this ambitious initiative arrives at a pivotal moment, with Germany aiming to deepen its strategic engagement with India across a spectrum of sectors—ranging from foreign policy, security, and sustainable development, to trade, technological cooperation, and the recruitment of skilled labor.
Strategic Underpinnings of the ‘Focus on India’ Initiative
The preamble of the ‘Focus on India’ strategy acknowledges India’s pivotal role as the world’s fifth-largest economy, underscoring its importance in global efforts to protect climate and biodiversity as well as in advancing the Sustainable Development Goals (SDGs) outlined in the 2030 Agenda. At a time when international law, the principles of the UN Charter, and the rules-based global order are under immense strain, India emerges as a stabilizing force in the Indo-Pacific region.
This strategy aims to raise the strategic partnership between the two nations, established in 2000, to a new level by fostering cooperation in high-priority areas such as foreign policy, security, development, and climate action. The German government seeks to better align with India’s growing global influence, particularly within the Global South, where India’s leadership in shaping foreign policy, promoting climate action, and contributing to international stability is becoming increasingly indispensable.
Core Priorities and Objectives
The ‘Focus on India’ strategy seeks to cover the entire spectrum of Indo-German bilateral relations, while aligning with Europe’s broader India policy. The key priorities of this framework include:
Foreign and Security Policy Cooperation: Germany aims to strengthen its position as a reliable security partner for India, particularly through enhanced dialogue on arms-related issues and broader defense cooperation. With both countries sharing a commitment to maintaining regional stability, especially in the Indo-Pacific, this partnership serves to counterbalance geopolitical tensions and reinforce the rules-based international order.
Climate and Environmental Protection: Central to the strategy is a focus on joint efforts to achieve the goals of the Paris Climate Agreement and the Global Biodiversity Framework. Both nations are committed to transitioning towards a low-carbon, sustainable future, and this partnership paves the way for greater collaboration in areas such as renewable energy, sustainable infrastructure, and environmental resilience.
Economic and Technological Cooperation: Germany seeks to capitalize on India’s innovative strength and vast technological potential by expanding trade and investment ties. As part of this, Germany plans to intensify collaboration in sectors like artificial intelligence, digitalization, and advanced manufacturing, areas where India is emerging as a global leader. Moreover, Germany aims to leverage India’s role as a hub for well-qualified skilled labor, recognizing the mutual benefits of facilitating easier labor mobility between the two countries.
Academic and Research Collaboration: The strategy emphasizes the importance of deepening cooperation in the fields of research, higher education, and innovation, with the goal of fostering long-term, sustainable progress in both countries. Enhanced academic exchanges and joint research initiatives will play a key role in nurturing talent and addressing global challenges such as climate change, healthcare innovation, and sustainable agriculture.
Human Rights and Fundamental Values: In addition to economic and geopolitical objectives, the ‘Focus on India’ strategy prioritizes exchange on basic values and human rights, particularly within the framework of the EU-India human rights dialogue. This aspect of the strategy underlines Germany’s commitment to promoting democratic values, social justice, and inclusive governance as cornerstones of the bilateral relationship.
Indo-German Green and Sustainable Development Partnership
At the core of the ‘Focus on India’ strategy is the Indo-German Green and Sustainable Development Partnership, which was initiated in 2022 by Prime Minister Narendra Modi and Chancellor Olaf Scholz. This partnership has gained considerable momentum, with Germany providing concessional loans through its Bank for Development (KfW) to fund key infrastructure projects and renewable energy initiatives in India. A landmark investment of €1 billion has been allocated to support India’s energy transition, particularly in the financing of photovoltaic systems, power grids, and solar infrastructure.
Germany’s role in facilitating India’s green transformation goes beyond financial aid. German companies and institutions are offering technical expertise and training in the installation, maintenance, and management of solar energy systems and energy storage solutions. This collaboration is aimed at helping India achieve its ambitious climate targets, which the country has already begun to meet ahead of schedule.
For instance, Prime Minister Modi announced at the RE-Invest conference in Gandhinagar that India had achieved its Paris Agreement climate commitments nine years ahead of the 2030 target. This success highlights India’s determination to lead the global green transition and transform renewable energy into a mass movement, engaging not only governments and businesses but also civil society and local communities.
The Role of Prosumers and Energy Cooperatives
Germany’s success in renewable energy production—ranking second globally after China—provides valuable lessons for India. In Germany, the rise of prosumers—energy consumers who also produce energy—has transformed the way energy is generated and distributed. More than 220,000 citizens are involved in 847 energy cooperatives across the country, with 80% of these cooperatives operating photovoltaic systems that generated 8.8 terawatt hours of green power in 2020.
These energy cooperatives not only enable the decentralization of energy production, allowing energy to be generated where it is most practical (such as in sunny or windy regions), but they also democratize the energy sector, leading to more transparent pricing and greater community engagement in the energy transition. Germany’s experience in empowering prosumers can serve as a model for India as it seeks to involve local communities, including rural cooperatives and women’s organizations, in its renewable energy initiatives.
Expanding the Indo-German Strategic Partnership
The ‘Focus on India’ strategy signals Germany’s commitment to expanding the scope of its strategic partnership with India, both bilaterally and within the broader European framework. By systematically engaging with India across multiple sectors and fostering stronger collaboration between German and Indian stakeholders, this initiative sets the stage for a more coherent and impactful partnership.
Germany’s ambition to diversify its energy sourcing away from China presents a significant opportunity for India to become a key player in the global renewable energy supply chain. As India accelerates its solar energy production, it is poised to become the second-largest producer of solar systems after China, creating millions of jobs, generating affordable renewable energy for its people, and contributing to a cleaner global environment.
The ‘Focus on India’ strategy reflects Germany’s recognition of India as a geopolitical and economic powerhouse that plays an essential role in shaping the future of the global order. By strengthening bilateral cooperation in areas such as security, climate action, economic development, and human rights, Germany and India are laying the groundwork for a strategic partnership that will not only benefit both nations but also contribute to global peace, prosperity, and sustainability.
