Indian neutrality over Ukraine will complicate ties: German industry

dpa Berlin India’s refusal to condemn Russia’s invasion of Ukraine is likely to make political and economic cooperation between Berlin and New Delhi more ...

dpa BerlinIndia’s refusal to condemn Russia’s invasion of Ukraine is likely to make political and economic cooperation between Berlin and New Delhi more difficult, according to the Federation of German Industries (BDI).“The West must reckon with the fact that India will not assign itself to any camp in an increasingly bipolar world order,” Wolfgang Niedermark, a member of the BDI’s executive board, told dpa ahead of a visit by Indian Prime Minister Narendra Modi to Berlin on Monday.“In their inter-system competition with China, Germany and Europe need to diversify their global economic ties just as India has,” Niedermark said.Both sides needed to reduce their dependency on Russia given the current situation, he said. “This applies to European energy imports as well as to Russian-Indian military cooperation.” In order to reach a trade agreement, India and the EU would have to meet each other half way, Niedermark said, adding that “European companies expect a secure investment environment and lower tariffs.Importing components for manufacturing must become cheaper so that India remains attractive as an investment location.”