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India’s bilateral trade with Germany has shown a growth rate of 20% in the first nine months of the current financial year and within the European Union (EU), Germany is India’s largest trading partner along with the UK and Belgium, Shri Kamal Nath, Union Minister of Commerce & Industry, indicated here today while participating in the Interactive Session with the Indo-German Business and Industry, led by Mr. Wolfgang Clement, Federal Minister of Economics & Technology of Germany, organised by the Federation of Indian Chambers of Commerce & Industry (FICCI). However, Shri Kamal Nath pointed out that on the investment front, the picture was not so encouraging, as the total German investment in India had been barely US $ 1.26 billion. Even though the actual figures of foreign direct investment (FDI) did not reflect the synergies of the two economies evident from the fact that more than 600 German companies were operating in India and a growing number of Indian companies were investing in Germany, Shri Kamal Nath emphasised the need to do more on both sides to realise the true potential of bilateral trade and investment.
An exclusive German window, the Minister informed, was functioning in the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, for focussed enhancement of industrial cooperation with Germany, stressing that all such instruments needed to be utilised effectively.
Expressing concern over the increasing use of non-tariff barriers (NTBs) that hindered trade, Shri Kamal Nath said: “use of standards as non-tariff barrier militates against the spirit of the multilateral trading order that we both are so staunchly committed to. We have to ensure that the applicable regulations are in conformity with the international best practices and aid, trade not obstruct it. We seek German understanding and cooperation in settling the issues of various Non-Tariff Barriers supposedly imposed on grounds of health and SPS requirements that Indian exporters have been facing in the European Union. India looks towards Germany as the channel for articulation of our views and concerns in EU. We will appreciate immediate steps to implement the much needed mutually beneficial changes”.
Underlining the new investment opportunities in the wake of India’s liberal FDI policy, Shri Kamal Nath pointed to the possibilities in the areas of IT, bio-tech and infotainment, besides other areas like telecom, engineering, environmental technology, chemicals, pharmaceutical and food processing. Similarly, India could benefit from German expertise in the field of renewable source of energy, which would boost bilateral economic ties, he said.
SB/MRS
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