German Chancellor Scholz begins India visit with trade, Ukraine crisis on agenda

German Chancellor Olaf Scholz on Saturday began a two-visit to India during which the Ukraine crisis, China’s actions across the Indo-Pacific and strengthening bilateral cooperation in trade and the green transition will be high on the agenda.

Scholz was given a ceremonial welcome on the forecourt of the Rashtrapati Bhavan soon after he flew into New Delhi a day after the first anniversary of Russia’s invasion of Ukraine. The Ukraine crisis has figured prominently during deliberations at the G20 finance ministers’ meeting in Bengaluru and was raised by German finance minister Christian Lindner.

“We already have very good relations between India and Germany and I hope that we will strengthen these ‘very good’ relations and that we will discuss intensely about all the topics relevant to the development of our countries but also for peace in the world, which is important,” Scholz said at a brief media interaction at Rashtrapati Bhavan before his talks with Prime Minister Narendra Modi.

Ahead of Scholz’s arrival, German ambassador Philipp Ackermann said the Russia-Ukraine conflict and China’s actions across the Indo-Pacific would be high on the agenda for bilateral discussions. Boosting trade and investment too is a priority for Scholz, who is accompanied by a high-power business delegation that includes 12 CEOs of major German firms such as Seimens and software major SAP.

Scholz’s visit is being seen as an attempt to persuade India regarding Europe’s position on the Ukraine conflict. “Germany will keep promoting our position, our view of this conflict, in order to refute narratives from the Russian side,” German government spokesman Steffen Hebestreit was quoted as saying by DW.

The visit will be an opportunity for the Indian side to have a better understanding of Germany’s policy on the Indo-Pacific, where China’s aggressive and assertive actions have become a cause of concern for several countries.

This is Scholz’s first visit to India after becoming Germany’s Chancellor last year. It is also the first standalone visit of a German Chancellor since the biennial inter-governmental consultation (IGC) mechanism was established in 2011.

Geopolitics and the difficult international environment, business, climate change and mobility of skilled Indian workers are the four key issues on which Scholz will engage with PM Modi, Ackermann told reporters this week.

The two sides will look at ways to grow bilateral trade from the current level of 30 billion euros a year and several business agreements are expected to be concluded during Scholz’s visit. Germany has also allocated 1.3 billion euros a year to fund climate transition and green energy projects across India.

The two sides are also expected to look at ways India can help Germany meet its needs for skilled manpower, including through accelerated legal migration. Germany is currently home to 35,000 Indian students and 18,000 more are set to join them in the coming months.

Besides bilateral talks with PM Modi, Scholz will participate in a business meeting on Saturday. He will also meet President Droupadi Murmu. On Sunday, Scholz will travel to Bengaluru for further meetings focused on trade and technology. He is expected to return to Germany on Sunday evening.