Along with the idol of Goddess Durga, which is linked to bringing good fortune, German Chancellor Angela Merkel brought to India huge investment commitments, business pacts and co-operation agreements. During the third Inter-Governmental Consultations (IGCs) with India on Monday, Germany committed an investment of over 1.4 billion Euros (approximately $1.5 billion) in Indian solar power projects while India promised an atmosphere conducive to investment by German companies.
The new investment commitment announced by Germany is in addition to more than 1 billion Euros that it has committed to a green-corridor project in India. “We have agreed on India-German Climate and Renewable Alliance with a long-term vision and a comprehensive agenda of cooperation. I place great value on Germany’s assistance of over one billion Euros for India’s Green Energy Corridor and a new assistance package of over a billion Euros for solar projects in India. We also intend to deepen research cooperation in clean and renewable energy, and energy efficiency. To contain temperature rise, we must also change our temperament,” said Prime Minister Narendra Modi after the talks.
A large number of financial agreements and security pacts were signed after the talks and it was agreed to fast-track business deals in India. Despite India being the biggest investment destination for German companies, there were concerns on several points. The German side conveyed India about the hurdles faced by foreign companies while investing in India. Corruption, red tapism and delay in clearance were among them. While promising more reforms India has agreed to set up a special body to fast-track investments by German companies and weed out the obstacles faced by them in conducting business here. The special body will be part of India Investment forum in Department of Industrial Policy and Promotion under Ministry of Commerce.
Merkel complimented Modi for the “speed” in which he is pushing various initiatives. “We honour that your Prime Minister has ambitious programmes for the development of your country and for the economic build-up and Germany is fully interested to be your partner and supporter,” Merkel said.
Germany also hoped that India will soon start negotiations with European Union of the Free Trade Agreement. In this regard, Modi expressed concerns over restrictions on 700 Indian drugs in international market and the impact of this on Indian pharmaceutical sector.
He urged Merkel to use her influence to see India is not unnecessary penalised by the regulatory bodies.
“We see Germany as a natural partner in achieving our vision of India’s economic transformation. German strengths and India’s priorities are aligned. 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.
The two sides signed 18 pacts for cooperation in various fields including higher education, civil aviation, railways, agriculture, security and food safety. Putting an end the dispute over teaching of German language in Central Schools, the two sides also settled for an agreement for teaching of languages.
In defence sector, Germany has shown interest in material technology and Navy-to Navy cooperation. German companies will be participating in the tenders for submarines for Indian Navy. German defence companies also have great interest in investing in India under Make in India programme.
India finds Germany as an important partner for its development initiatives, like Skill India, Make in India, Digital India, Clean Ganga, etc.
On global issues, Germany too has a strong say particularly and India is looking for its support on every forum including climate change. The talks between Modi and Merkel also encompassed discussion on Pakistan and terrorism concern for India, situation in Afghanistan, West Asia, Syria, Ukraine, Indian Ocean and South China Sea. They also discussed issues of climate change. “This is an area where we have convergence of views and rapidly growing cooperation…We look forward to a concrete outcome at COP21 in Paris that strengthens the commitment and ability of the world, especially of poor and vulnerable countries to transition to a more sustainable growth path,” Modi said.
On Tuesday, Modi will accompany Merkel to Bangalore where they will attend a meeting of business forum and visit factory of Bosch.