Indo-German trade relations have been characterised by years of collaboration between the two countries. The foreign direct investment between the two countries amounts to 2.9 per cent of the total FDI in India since 1991. Sectors like services, chemicals, trading, electrical equipment and automobiles have been given top priority for German investments in India. The sectors that have attracted Indian investment in Germany are IT, automobiles, consultancy firms, pharmaceuticals and wind energy.
In this background the 57th annual general meeting (AGM) of the Indo-German Chamber of Commerce (IGCC) was held in Mumbai on September 22, in the presence of Mr. Praful Patel, Union Minister for Heavy Industries & Public Enterprises, who was the chief guest on the occasion, and Mr. Michael Steiner, German Ambassador to India, who was the guest of honour.
In his address, Mr. Steiner said: “Many German companies established in India still make good business. The latest data show that the trade deficit in August could be brought down to less than $11 billion compared to the peak of almost $21 billion in May. In August exports grew by 13%, and the non-oil imports dropped by 10.4%. It looks like the rupee’s 20% loss between May and August is finally having positive effects on the trade balance. Surely, this relief for the trade balance has to be welcomed. However, export growth based on devaluation effects is of course not a sustainable strategy, not to speak of the rising costs of oil imports. What India really needs is not hot money but sustainable growth, more long-term foreign investment and skilled labour. In order to regain the confidence of investors, both national and international, India will have to take some bold steps necessary to lay a sound economic basis for the Indian population as a whole and to overcome poverty.”
Issues which need top priority attention in India are education, governance, energy security and infrastructure improvement, he added.
Earlier, the outgoing President of IGCC, Mr. V.K. Vishwanathan, Chairman, Bosch Ltd., delivered the welcome address, followed by speeches by Mr. Praful Patel, Ambassador Steiner and Siegfried Herzog, Regional Director South Asia, Friedrich Naumann-Foundation.
The IGCC Award for outstanding contribution towards promotion of Indo-German economic relations was given to LANXESS India Pvt. Ltd. and the Award for outstanding export performance by an Indo-German joint venture was presented to Scientific Publishing Services (P) Ltd. and KHS Machinery Private Ltd.
The latest statistics for the financial year 2012-13 were also announced on the occasion, with Maharashtra attracting the maximum German investments worth $218.6 million (25.4 per cent), followed by Karnataka with an investment of $121.4 million (14.1 per cent) and Andhra with an investment of $38.3 million (4.5 per cent).
New IGCC team takes charge
At the annual general meeting of the Indo-German Chamber of Commerce (IGCC) held in Mumbai recently, Dr. Armin Bruck, Cluster CEO South Asia and Managing Director, Siemens Ltd., India, and Mr. Tapan Singhel, Managing Director & CEO, Bajaj Allianz General Insurance Co. Ltd., were elected President and Vice President respectively for 2013-14. Dr. Joerg Strassburger, Country Representative & Managing Director, LANXESS India Private Ltd., was chosen the Treasurer.
During his tenure as its President from 2004 to 2007, Dr. Armin Bruck did his best to make the business unit emerge as the No.1 supplier in the energy automation market. As President of the Energy Automation Business Unit, Siemens AG, during 2004-2007, he restructured and turned around the business unit.
Mr. Tapan Singhel has been with Bajaj Allianz General Insurance since its inception in 2001 and was an integral part of the team starting up the insurance business in the retail market.
Dr. Strassburger started his career 20 years ago with marketing cellulose ethers for the Bayer subsidiary, Wolff Walsrode. Later, he held the position of Head of Marketing and Sales for Wolff Walsrode in France. After four years in France, he became Strategy Consultant in the Strategic Planning unit of Bayer AG. Before joining LANXESS, he was head of Strategic Planning at Bayer Polymers.