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Germany's Scholz arrives in India to 'deepen' ties

February 25, 2023

Talks between Chancellor Olaf Scholz and his Indian counterpart Narendra Modi focused on the Ukraine war and trade opportunities.

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German Chancellor Olaf Scholz speaks in New Delhi with Indian Prime Minister Narendra Modi by his side on February 25, 2023
Scholz and Modi will discuss the war in Ukraine and trade opportunitiesImage: Michael Kappeler/dpa

German Chancellor Olaf Scholz arrived in India for a two-day visit on Saturday, with the Ukraine war having dominated discussions by end of the first day.

Scholz was met by Indian Prime Minister Narendra Modi in the capital, New Delhi, where he received military honors.

"India and Germany have very good relations and want to deepen them. That will be the topic of our talks and, importantly, peace in the world," he told reporters.

Scholz and Modi on Ukraine war

The chancellor was expected to seek India's support for the tough stance taken by Europe and the US toward Russia over the war in Ukraine.

"We talked about the whole situation and exchanged very openly our assessments on the concrete situation that Russia's attack on Ukraine has created," Scholz said after meeting Modi.

"I believe one can say that no one here (in India) is under any illusions, including the government, that this is an offensive war started by Russia in order to acquire a part of its neighbor's territory," Scholz said, without offering details about their discussion.

India has an officially neutral position in the conflict. Modi has refrained from any overt criticism of Russia, as Moscow is a major arms supplier.

German Chancellor Olaf Scholz shakes hands with Indian Prime Minister Narendra Modi before their meeting in New Delhi, India on February 25, 2022
India has stayed neutral over the Ukraine war and has benefitted from cheap Russian oilImage: Adnan Abidi/REUTERS

During Saturday's news conference with Scholz, Modi said India was "ready to contribute to any peace efforts," adding that New Delhi had been calling for a resolution of the crisis through dialogue and diplomacy since the war began.

Scholz  told reporters that he discussed China's Ukraine peace plan with Modi as well, saying there are "things that are noticeably correct, for example the renewed condemnaton of the use of nuclear weapons. Missing, from my point of view, is a recognizable line that says there must be a withdrawal of Russian troops."

Delhi's ties with Russia

Russia provides New Delhi with oil. Since the war began last February, India has increased its oil imports at a major discount due to European and US embargos. 

Philipp Ackermann, the German ambassador to India, said he understands why India is buying large quantities of oil from Russia.

“That’s something that the Indian government decides and as you get it at a very, very low price, you know I cannot blame the Indian government for buying it,” New Delhi Television cited Ackermann as saying. 

At the UN General Assembly on Thursday, India abstained from voting on a resolution demanding Russia withdraw from Ukraine. The resolution was passed by a very large majority.

Critics have accused India of undermining the West's sanctions on Moscow, while Indian officials have denounced what they say is the hypocrisy of Western countries, given their long history of military interventions around the world. 

Boosted trade ties could net Germany a big submarine order

Scholz is also keen to expand economic and strategic cooperation with India in order to reduce Germany's dependence on China and also to help New Delhi free itself from its close ties with Moscow.

Over the past 15 years, Europe's largest economy benefited from the rise of China and cheap Russian energy, but concerns over Beijing flexing its muscle militarily and the war in Ukraine have spurred the need to decouple from both countries.

Germany, alongside South Korea, is reported to be in the running to supply India with six new submarines — a deal thought to be worth $5.2 billion (€4.9 billion).

Scholz discusses trade deal 

Scholz pressed for progress toward an India-EU free trade deal and an investment protection agreement, telling reporters he was in "favor of applying more pressure."

Scholz said he and Modi were committed to making it happen, adding that "it's an important topic and I'll get personally involved."

A German official in Berlin said the two sides remain "quite some distance apart" on the trade deal.

In May last year, Germany and India signed a series of bilateral agreements focused on sustainable development under which India will receive $10.5 billion in aid by 2030 to boost the use of clean energy.

The trip is Scholz's first official visit to India, though it is his fourth meeting with Modi since taking office in 2021. On Sunday, Modi will take Scholz to India's information technology hub Bengaluru.

Scholz is traveling with a delegation of business leaders, although no executives from major carmakers are on the trip. Germany's auto manufacturers have said in the past that India is a tough market to crack due to regulation and trade barriers.

rm, mm/ar (AP, dpa, Reuters)

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