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Sunday, Apr 03, 2005

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Indo-German joint commission to meet

By Our Special Correspondent

NEW DELHI, APRIL 2. The 15th session of the Indo-German Joint Commission on Industrial and Economic Co-operation is scheduled to begin here on Monday. Leading the Indian delegation at a two-day meeting will be the Finance Minister, P. Chidambaram, while the German side will be headed by the Federal Minister of Economics and Labour, Wolfgang Clement.

The joint commission is one of the most important policy institutions dealing with the entire gamut of Indo-German economic relations. Meeting alternately in India and Germany, it deals with the overall bilateral economic relations between the two countries with its focus on trade balance, trade promotion, investment issues, technological collaboration arrangements and policy issues.

At the two-day meeting here, issues relating to bilateral trade, investment, infrastructure and industrial cooperation are likely to be discussed. With more than half of India's gross domestic product (GDP) being contributed by the service sector, matters relating to knowledge and service-based industries are also to be taken up separately.

German investments in India have been declining in recent years and, in this context, the joint commission meeting assumes special importance. On an average, Germany's investments in India in the last 10 years have been about $ 125 million annually, which is quite insignificant when compared both with its overseas investments in other countries and India's true potential.

The Government feels that there is substantial scope for larger German investment in areas such as information technology, biotechnology, telecommunications, small and medium enterprises (SMEs) and infrastructure development. In particular, the discussions are likely to focus on these aspects during the two-day meeting.

Germany too, is keen on stepping up investments into India and this is reflected in the 100-member delegation led by Mr Clement. It comprises of CEOs of top German companies like Bar GmbH, Alstom Power, Imexa and TUV, besides members of the German Bundestag.

The Indian delegation also comprises of top officials from various Ministries and CEOs of top corporates such as Indo Rama, Atlas Cycles, NRB Bearings, ITC and Hero Honda. It will include leading representatives of the apex business chambers like FICCI, CII and the Indo-German Chamber of Commerce.

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