India-Germany ties: FTA, submarine deal emerge as key priorities for Berlin

Germany`s ties with India have assumed greater importance amid growing global uncertainty, with the two countries looking to deepen cooperation in trade, defence and labour mobility, German Ambassador to India Jasper Wieck said on Wednesday. PIC/X

Germany's ties with India have assumed greater importance amid growing global uncertainty, with the two countries looking to deepen cooperation in trade, defence and labour mobility, German Ambassador to India Jasper Wieck said on Wednesday at a press conference here.

Describing the current period as an "era of unpredictability", Wieck said Russia had "wrecked trust and peace" while the United States was "constantly changing the rules of the game", making closer cooperation between India and Germany more important.

On India's continued purchase of Russian oil, he said Germany understood the energy needs of a country of 1.4 billion people but argued that reducing purchases of Russian oil would dent Moscow's ability to finance the war in Ukraine.

Defence cooperation is another key priority, with Wieck saying a possible German submarine deal with India could give a "big boost" to bilateral ties, while unmanned systems, cyber, missile and sensor technologies offered other areas for cooperation.

Wieck assumed charge as Germany's ambassador to India and Bhutan recently and presented his credentials to President Droupadi Murmu in August.

As his three priorities as ambassador, Wieck identified the pending formal signing of the India-European Union Free Trade Agreement (FTA), labour migration and defence cooperation.

"If we don't buy any oil anymore from Russia then the funding, the financing for the (Ukraine) war stops," he said, adding that Germany understood India's "specific situation" as a country of 1.4 billion people whose economy depends on energy imports.

The ambassador's remarks came amid growing Western pressure on countries, including India, that are buying Russian energy. The US has recently moved to target major buyers through the Lindsey Graham Sanctioning Russia and Iran Act, which authorises sanctions and tariffs on purchases of Russian oil and gas. The European Union (EU), however, does not directly sanction third countries for buying Russian oil.

"Ukraine has been ready for a ceasefire for a long time, and Russia has opposed it," Wieck said, adding that the conflict had affected India and Germany through higher prices of grain and fertilisers and also had geopolitical implications.

He said Russia was becoming increasingly dependent on China and "the sooner the war ends the better", adding that the way forward was to change the cost-benefit calculation on the Russian side.

Wieck also said India could play a role in efforts towards a diplomatic resolution of the Ukraine conflict, while stressing that the war had to end through a process that changed Russia's calculation.

On defence cooperation, Wieck said, "The submarine deal, if it materialises, will be a big boost to the Indo-German partnership," describing submarines as among the "most complicated and complex and ambitious military" systems.

India and Germany are expected to sign a deal for six next-generation conventional submarines under Project-75I. The estimated 8-billion-euro agreement involves Germany's ThyssenKrupp Marine Systems and India's Mazagon Dock Shipbuilders, and envisages building the submarines in India.

Wieck added that unmanned systems, cyber capabilities, missile technology and sensors were other potential areas of defence cooperation.

On the India-EU FTA, Wieck said Germany expected the agreement, whose negotiations were successfully concluded in January, to be signed by the end of 2026, after which it would require ratification by the Indian and European parliaments.

On pending student visa issues, Wieck said Germany was working to address the concerns, while noting the importance of facilitating greater movement of students and skilled workers between the two countries.

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