A successful visit

Speaking in Bengaluru on Tuesday at a joint Indo-German business forum, Prime Minister Narendra Modi again reiterated that a goods and services tax would be rolled out next year. Given the known opposition of the Congress Party, it is hard to see how Modi will cross the Rajya Sabha hurdle. Anyway, his optimism suggests that the government might yet be ready to try and persuade the main Opposition to drop its obstreperous hostility towards the progressive tax measure. The fact that the visiting German Chancellor Angela Merkel was present when the PM made that promise to roll out GST ought to further raise optimism about the government making a serious bid to end the confrontation in the polity. For, without the cooperation of the Opposition it is hard to see how the GST can become law. But the visit of the German chancellor was also about removing a few other niggles dogging Indo-German trade. Modi used the opportunity to reassure foreign investors that there shall be no resort to retrospective taxation, a noxious way to harass businesses which the UPA government was guilty of abusing to the detriment of the national economy. Meanwhile, the Merkel visit also resulted in a number of new agreements and protocols between the two countries. Given that Germany is the economic engine of Europe Union, which, in turn, is India’s single largest trading partner, Merkel’s commitment to take the relationship with this country to a higher plane does mean a lot. To begin with, it is also in Germany’s interest that the UN structures are reworked in view of the vastly changed global power equations. Germany was a minor cog in the American ecosystem when the UN charter was drawn up. Now it is a powerhouse and needs to be recognised as such by the world body. Ditto for India. As a growing economy with the second largest population in the world and a growing role in the security and strategic affairs of the region, India too rightfully demands its place on the global high table. Merkel and Modi seem to be in agreement on reforming the UN. But a number of other key matters found resolution during the three-day visit. India received German backing for its entry into the elite club which restricts dual-use technology, protocols on missile tech, nuclear supplies and chemical and biological weapons to members alone. Germany promised to work for India’s entry which, following the Indo-US civil nuclear deal, has become further logical. Germany sets a great store by green technology, notwithstanding the scandal about the cheat emission devices fitted in cars made by one of its marquee auto makers. It has promised help in cleaning the Ganges and in providing financial assistance for boosting solar energy. Putting to rest the controversy about the teaching of German in schools, it was also decided that German will be taught as an optional language in select schools in India. In sum, a short but successful visit.