The Hindu Business Line : Indo-German trade may cross 5-b euro mark

INDO-German trade is expected to cross the five-billion euro mark by the end of 2002, Mr Juergen Schubert, President of Indo-German Chamber of Commerce (IGCC), said today.

He said Indo-German trade has increased by 5.7 per cent in 2001 and rose another 4 per cent in the first six months of 2002.

However, the number of FDI approvals by the Indian Government has declined steeply in 2002 and, IGCC predictions see a stagnation in German investments this year.

According to Dr Gerhard Jooss, Chairman, India Committee of German Industry, globally the speed of FDIs was slowing. However, an UNCTAD report said that though FDIs worldwide had fallen 50 per cent, in Asia it had only fallen 25 per cent.

With the process of reforms and globalisation firmly underway in India, German investors are keen to enter telecom, insurance, banking healthcare and IT, according to heads of Indian and German businesses attending the IGCC annual general meeting today.

German companies were interested in entering the healthcare and education sectors in India. India was a huge market and offered enormous potential.

However, according to the IGCC President, Mr Juergen Schubert, the low level of newly sanctioned investments in India is because of its image.

"We feel an action plan is required to boost India's image in Germany. We are also hoping that more Indian entrepreneurs set up shop there," he said. He added that infrastructure constituted an unfinished agenda. Given the right thrust, and action, it could attract more investors.

He added that actions such as signing the WTO agreement and stepping up the pace of disinvestment showed that India was committed to the reforms process.

According to the German Ambassador to India, Mr Heimo Richter, India was good at manufactures that involved high precision work, and was well know for its scientific research efforts.

Mr Rahul Bajaj, Chairman, Bajaj Allianz General Insurance Co Ltd, said: "More trade and investment is needed in India. However, before that happens, our house has to be put in order. Problems relating to infrastructure, power and red tapism have to be solved, otherwise there will be no investments forthcoming."

He said that more internal reforms were required in India to attract foreign investors and the EU and Germany had to open their economies to Indian products.

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