Indo-German Economic Relations: A Flourishing Partnership – Defence News

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Huma Siddiqui

New Delhi, Jan 10

The ‘Vibrant Gujarat Summit’ witnessed the active participation of the German Ambassador, Dr Philipp Ackermann, in an event organized by the Indo-German Chambers of Commerce. In his address, Ambassador Ackermann shared insights into the current state of Indo-German economic relations, emphasizing the evolving dynamics of India’s global position and the robust partnership between the two nations.

India’s Transformative Role:

Ackermann acknowledged India’s rapid ascent on the global stage, emphasizing its dual role as a key player in world affairs and a driver of global economic growth. And commended India’s inclusive multilateral agenda during its G20 presidency, showcasing its convening power internationally. The ambassador highlighted India’s emerging status as an international business and trade hub, attributing this to factors such as a large aspiring population, strategic geographic positioning, and the stability of its democratic system.

He noted, “The Indian government’s policies promoting manufacturing development, improved investment climate, and free trade arrangements with international partners are key to tapping this potential.”

Indo-German Partnership:

Dr Ackermann expressed pride in Germany’s role as a partner country for the Vibrant Gujarat Summit and underscored its commitment to India’s and Gujarat’s economic success. The strategic partnership between India and Germany, he stated, continues to be a success story, with Germany being India’s top trading partner in Europe, boasting over 30 billion euros in trade annually.

Highlighting the depth of collaboration, he shared, “More than 2000 German companies have a permanent presence in India, and record numbers of Indian students study at German universities. Under the Green and Sustainable Development Partnership, Germany has budgeted a billion euros per year for cooperation projects with India in promoting urban mobility, renewable energies, and environmental protection.”

Supply-Chain Management and Geopolitical Realities:

The ambassador delved into the crucial aspect of supply-chain management, emphasizing the challenges posed by geopolitical shifts and global shocks. He pointed out the interconnected and vulnerable nature of the world, with events like the COVID-19 pandemic, Russia’s invasion of Ukraine, and trade tensions leading to disruptions in global supply chains.

“In a changing geopolitical environment, supply chains will have to adapt to new realities. While efficiency will remain a priority, resilience has emerged as a key factor shaping the supply chains of tomorrow,” he remarked.

India’s Potential in Supply Chain Transformation:

He highlighted India’s potential to gain from the evolving supply chain landscape. With high growth projections, a vast market, a diverse corporate environment, and skilled labour, India stands on the cusp of a transformative shift in supply chains. The announcement of the -Middle East Europe Economic Corridor (IMEC) at the G20 Leaders’ Summit positions India as a potential hub in global supply chains.

Sustainability of Supply Chains:

The ambassador stressed the importance of responsible and sustainable supply chains. He lauded the new German Due Diligence in Supply Chains Act, aiming to ensure fair labour standards and protection of the climate and environment. Ackermann stated, “The goal of a carbon-neutral economy in line with the UN’s Sustainable Development Goals is only achievable if standards are held up throughout the supply chain.”

Indo-German Collaboration in the Future:

Looking ahead, he expressed confidence in the Indo-German partnership building resilient supply chains for the future. He anticipated further vigour in the partnership in 2024, with the Asia Pacific Conference of German Business scheduled to be held in Delhi. This event, bringing together top-level executives and political leaders from Germany and Asia, is seen as a remarkable opportunity to showcase the strength of the Indo-German strategic partnership.

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