It was hope that Olaf Scholz (SPD) wanted to give the German economy at the start of their Asia-Pacific conference in New Delhi. Instead, the Chancellor once again demonstrated that he is not suitable as an encourager. The European aircraft manufacturer Airbus delivers a plane from Hamburg to the “largest democracy in the world” every week, said Scholz in his speech on Friday morning, which, as usual in India, began with a long delay. The Munich industrial group Siemens wants to develop artificial intelligence on the subcontinent. And German car manufacturers, Scholz praised, “dominate the Indian upper class market.” There were whispers among the managers, entrepreneurs and officials in the hall of the magnificent Taj Palace. The fact that booming India, with its strong passenger growth, is a promising market for the German aviation industry may still be acceptable. Siemens, however, achieved sales of almost two billion euros in the country last year, which accounts for just 2.5 percent of the group’s total revenue. At the reception the evening before on the lawn of another luxury hotel in Delhi, the Germans mainly commented on the fact that there is hardly a single German car to be seen on the streets in the posh districts of the Indian capital. Mercedes sold 14,379 cars in India in the first nine months of the current year. In the crisis-ridden neighboring country of China it was 36 times as many in the same period – even though sales there fell by ten percent to 512,200 cars compared to the same period last year. The word “India” does not appear in the Stuttgart manufacturer’s most recent quarterly report. Dispute over agriculture Scholz’s call for a “quick conclusion” of a free trade agreement with India did not lift the mood. The negotiations that have been going on with the European Union since 2007 could come to a good end “in months rather than years,” said the German Chancellor to the Indian Prime Minister in the hall. In return, Narendra Modi praised the “partnership” with the Germans and the fact that Scholz was in the country for the third time. But when it came to free trade agreements, the Indian didn’t agree to anything; he didn’t even mention the word. External content from YouTube In order to display external content, your revocable consent is required. Personal data from third-party platforms (possibly USA) may be processed. More information. Activate external contentFederal Economics Minister Robert Habeck (Greens) said on Thursday that the negotiations were stalled primarily because of the dispute over agriculture, in which 60 percent of all Indians work and whose opening could have fatal consequences in the eyes of New Delhi. The Berlin Science and Politics Foundation (SWP) described the prospects for a comprehensive free trade agreement as “bleak”. Habeck and German business representatives are promoting a slimmed-down agreement that only covers selected areas such as industry. India maintains good relations with Brics states. India’s Trade Minister Piyush Goyal, who also spoke at the conference and took part in a discussion with Habeck, did not respond to the advertising attempts . Only at one point did he briefly mention that cooperation could “possibly” be improved through a free trade agreement. If, yes, if both sides gave sufficient consideration to each other’s “sensitivities,” he added. His words reflected the self-image of a country that feels at least on par with Germany, if not superior. What Goyal had to say to his “good friend”, “my brother Robert”, was nothing less than a declaration of war: “We are not negotiating today from a position of weakness, but on an equal footing.” India will soon be the third largest economy in the world he said. To put it into perspective: This is currently Germany, after Japan slipped to fourth place due to the weak yen. India is still at number five. So far, the Indian government had stated that third place should be achieved by 2029. Goyal now added “within the next three years” to his target description. The message that resonated widely that day: Germany is more dependent on a free trade agreement between the EU and India than India, which also maintains good relations with the BRICS group of countries with countries like Brazil and Russia. India continues to build coal-fired power plants, including when it comes to climate protection Goyal took a confident stand. “India has 17 percent of the world’s population, but only contributed 2.5 percent to the problem.” The share of renewable energy in the country is still low. Like China, India continues to build coal-fired power plants to power its growing population and economy. In New Delhi, Habeck was optimistic that the country could flexibly switch off some of this capacity in times when there is a lot of renewable energy. And that German technology could help. However, the topic did not play a major role in the Indians’ statements.More on the topicAfter the conference, government representatives from both sides held consultations in the Indian government’s guest house. The dissonance between the many declarations of friendship could also be heard in the subsequent press statements – questions from journalists were not permitted. Again Scholz brought up the free trade agreement, but again Modi said nothing about it. In return, he said somewhat patronizingly: India’s “large talent pool” could help Germany in its development. The background is to make things easier for Indians who want to work in Germany. There is now a lot of “clarity” in the German-Indian partnership, said Modi. He concluded in German with the words “Everything is clear, everything is good.” It is doubtful that the German side also sees it that way.
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