German business hopes for swift reforms through Prime Minister Modi

The summit, which was hosted jointly by the Asia-Pacific-Committee of German Business (APA), the Confederation of Indian Industry (CII) and the Hannover Messe, has been an important signal of both countries to further foster economic relations. Hubert Lienhard, APA chairman, emphasised that the German economy stands ready to invest in India, once the framework conditions are accordingly. The APA strongly encourages the continuation of fundamental reforms in the areas of infrastructure development, the cutting of red tape and the reduction of tariff barriers.

Chancellor Merkel pointed to the importance of equal treatment of German companies in India. In particular, regarding the access to public tenders or the allocation of licenses equal treatment is frequently not yet guaranteed.

Prime Minister Modi and Secretary Amitabh Kant, Ministry of Commerce and Industry, used their statements to introduce the campaign “Make in India”. Extensive investments in infrastructure development, the uplift of investment caps for FDI, improvements in the area of “Ease of Doing Business” as well as transparency and reliability in the tax system are key elements of the campaign.

The subsequent panel discussion (participants: Joe Kaeser/Siemens AG, Baba Kalyani/Bharat Forge Ltd., Cyrus Mistry/Tata Sons, Klaus Rosenfeld/Schaeffler AG) analysed reform priorities from the business perspective. Qualification initiatives as well as urgently needed infrastructure development were among the topics. The panel also discussed, whether and if so how a bilateral free trade agreement between the EU and India could foster and deepen bilateral relations.

Fittingly, the expectations of German Business regarding Prime Minister Modi were in the end summarized with the words “Make it happen in India”. Approximately 800 business representatives from India and Germany took part in the summit.