A Case Study of Relations between India and Germany and their Impact on Trade

Abstract

India and Germany, with their vast economic parameters are nations that believe in a pluralist and open society, uphold democratic values and show great respect for human rights. Despite the shared values India and Germany are yet to transform their relationship to their full potential. Both the countries started re-writing their story of nation building around the same time in the mid-1940’s. The cold-war period was a period of insignificance in the relations of the two countries. However, the fall of the Berlin Wall, in 1989 and the economic liberalisation of India, in 1991, were two milestones that both India and Germany experienced. India’s economic policy reform, whereby it opened its economy to the world, also impacted Germany. This changed the dynamics of Indo-German relationship. Since then, a deeper understanding of each other and increased cooperation between the two partners has brought in notable gains and strengthened economic, political and social ties. Empirical data, however, shows that this relationship still has greater economic potential and can consequently, help in consolidating the position of the two partners at the international stage.