HANNOVER: India on Monday sought more German investments, particularly in infrastructure, manufacturing and hi-technology sectors, even as Berlin asked India to shed protectionism and open its markets further.

Seeking closer economic cooperation, Prime Minister Manmohan Singh said: "Infrastructure, manufacturing and hi-technology sectors are the three areas where India and Germany can enhance cooperation.''

During the inaugural session of the Indo-German Business Summit here, he assured full support to German companies and noted that a lot of firms from the European nation were already present in India and many were expanding operations.

"I believe 65 per cent of German manufacturing companies already have a presence in India and another 30 per cent plan to come there. This is a good augury for expanded cooperation between us in future,'' he told the gathering of top German business leaders here. "... but we are looking at closer ties with the small and medium enterprises,'' the Prime Minister said.

Speaking on the occasion, German Chancellor Angela Merkel asked the industry in her country to avail itself of the immense opportunities in India, while asking India to open up its markets further.

"I request the Indian Government that any attempt towards protectionism should be staved off, be it the European Union or other countries. This is not the right path. We must face the challenges of change,'' she said.

Ms. Merkel also sought closer cooperation in the field of science and technology. India and Germany were strategic partners and had a common agenda, she said, adding that the two countries should interlink their capabilities, particularly in the area of energy security and energy supplies.

Dr. Singh, who, along with Ms. Merkel, inaugurated the India Pavilion at the Hannover Fair, witnessed the signing of five agreements, involving Indian companies and agencies.

Indian private carrier Kingfisher signed a $1-billon dollar contract with European aircraft manufacturer Airbus for five A 340-500 airplanes, which the airline plans to use for its international operations.

NEOMAN, the bus division of the $7.4-billion Euro MAN Nutzfahrzeuge Group, signed a Letter of Intent with Pune-based Force Motors Ltd. to set up a joint venture for building chassis, buses and coaches for Indian and Asian markets. The Indian Railways and its German counterpart Deutsche Bahn signed an MoU for enhancing cooperation in railways related technology and developments.

The areas of cooperation would cover modernisation and servicing of rolling stock, signalling and telecommunications, maintenance and servicing of rail lines, modernisation of transport operations, technology for increasing speed of rail traffic and undertaking joint research projects.

Another agreement was reached between the Indian Council of Medical Research and the Helmholtx Association of National Research Centres for cooperation in the medicine sector. The Bureau of Indian Standards inked an MoU with the German Institute for Standardisation DIN for working towards common standards and certification.

Later, during the Business Summit, India's Commerce Minister Kamal Nath said India's participation in the Hannover Fair as a partner country marked the renewal of strong relations with Germany.

"The strongest endorsement of India's emerging potential as the next global manufacturing champion comes from the fact that today about 80 per cent of all German investors present in India are manufacturing firms,'' he said. Mr. Kamal Nath said the potential areas of Indo-German cooperation included telecommunications, pharma, chemicals, environmental technology, food processing and renewables.

Small and medium Entreprises of India and Germany could also cooperate in auto components, machine, toys and pharma, the Minister said.

Germany is one of India's largest trade partners with two-way engagement estimated at over $7 billion. Germany is the fourth largest investor in India and more than 600 companies from the European powerhouse operate in India. — PTI

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