Merkel offers green funds, Modi eases ride for German biz
SHAKING HANDS Defence, trade, railways among key areas where India, Germany deepened cooperation with 18 pacts
NEW DELHI: Germany pledged over one billion euros to India’s clean energy push and the two countries struck a deal to fast-track investments from the European powerhouse on the second day of German chancellor Angela Merkel’s visit on Monday.
Prime Minister Narendra Modi and Merkel signed a raft of agreements, 18 in total, agreeing to enhance ties in key areas, including defence, intelligence, railways, trade and combating terrorism.
“In a world of challenges and opportunities, India and Germany can be strong partners. German strengths and India’s priorities are aligned,” Modi said at a joint media event with Merkel after over three-hourlong talks in Delhi.
“We see Germany as a natural partner in achieving our vision of India’s economic transformation.”
Both leaders also committed themselves to reviving an Indo-European free-trade pact that has been in cold storage for months since India walked out of talks earlier this year in a row over generic drug export.
Under the agreements, German firms will have a single point of contact in the administration, helping them to navigate a complicated web of red tape that often thwarts business initiative.
India would monitor on a monthly basis all issue for German companies under the agreement, commerce secretary Amitabh Kant said.
The agreement is the first of its kind and comes as Modi seeks to attract massive amounts of foreign investment to back his flagship Make in India drive to boost industrial investment and create jobs.
Merkel said more than 1,500 German companies were in India and more would be glad to open up. She commended the inking of the fast track agreement on German companies and said the inking of so many agreements was a testimony to the “dynamic relations”.
“The speed at which you grant licences has increased, which is a good thing,” the chancellor said.
Since riding to power on the back of a crushing victory last year, the BJP government has managed to pull India out of an economic slump but the recovery process has been hobbled with drying foreign investments.
Asia’s third-largest economy has been relatively insulated from a slump in global trade, but Modi still needs to boost exports for his pitch to investors to Make in India to create skilled jobs for millions of young Indians.
Germany, Europe’s largest economy, is looking to expand its presence in India to compensate for a slowdown in China. Merkel’s delegation was joined by bosses from household names like Siemens, Airbus, E.ON and Thyssenkrupp.
Modi has repeatedly committed to change India’s lengthy and outdated corporate procedures and improve the country’s ease of doing business but still faces stiff challenges, especially in attracting foreign capital. The German agreement may go a long way in solving the image problem.
Both leaders also committed themselves to reviving an Indo-European free-trade pact that has been in cold storage for months since India walked out of talks earlier this year in a row over generic drug export.
“Our focus tends to be on economic ties. But, I believe that in a world of seamless challenges and opportunities, India and Germany can also be strong partners in advancing a more human, peaceful, just and sustainable future for the world,” Modi said.
Germany, a world leader in renewable energy, will also provide funds for solar projects and green energy corridors - or high-