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"Science is one field the Europeans can learn quite a bit from Indians"

R.K. Radhakrishnan

Bernd Mützelburg, Germany's Ambassador in India, was in Chennai on Tuesday to participate in the inauguration of the 300th anniversary celebrations of German missionary Bartholomaeus Ziegenbalg's arrival in India. In an interview, Mr. Mützelburg, who was Foreign and Security Policy Adviser to Chancellor Gerhard Schroeder, spoke on a wide range of subjects, from German investment to the possibility of teaching Indians to play football. Excerpts:

— Photo: R. Ragu

Bernd Mützelburg: "The small and medium size manufacturer apart from bringing in jobs also assumes a special responsibility in the society in which he operates... These are people who can make a difference to society."

We are halfway through 2006, the year of India in Germany. What has been the response? Have there been any tangible results?

The response has been overwhelming... I am very confident that this year — the India in Germany year — will be a big success.

I have myself been able to accompany Prime Minister Manmohan Singh to Hannover and Berlin ... India was present for the second time in the Hannover fair, which is the largest industrial fair in the world, with a rather high number of manufacturers. [This] was really enlightening for the German business class. Because up to now, in Germany we had the impression that India or the Indian economic miracle was based on IT, on software and not really on manufacturing ... I think we had offers to the tune of 1.5 billion euros from the start of the annual trade fair. But I think in the long term, it will encourage quite a number of German companies to look towards India as a base for manufacturing and for knowledge-based manufacturing ... We find here in India a place which has the necessary amount of highly qualified people, relatively cheap labour force. I am pretty sure that in the long run, the trend that has just been established will continue. And that trend is: I assist in the opening of one German company per week [in India]...

The Manmohan Singh-Angela Merkel joint statement talked about recognising the "significant role of the small and medium enterprises in further promoting trade, investment and technology links" and about facilitating "intensification of linkages of such enterprises." How much work has been done in this direction?

Yes, the companies that are coming [from Germany to India to set up base now] are small and medium size enterprises. The big ones are already here — Siemens, Bosch ... BMW is just now starting its operations in Chennai. But what is important, I think, is the small and medium size manufacturer apart from bringing in jobs also assumes a special responsibility in the society in which he operates ... These are people who can make a difference to society.

What is the thought behind making India the Guest of Honour Country in this year's Frankfurt Book Fair?

The economic aspect is not the only field, you know. Indian culture has left a deep impact on Germany ... There are two aspects that I want to highlight in this context. The first one is, this will give India not only a chance to demonstrate to Germany what a prolific literature India has. We will not only see books of the most known Indian writers, who are publishing, of course, in English. This will be one of the first times where also authors who write in other [Indian] national languages will also be featured ... You will see a variety of Indian dances, singers, painters, and so on and so forth, who will also have their exhibitions and events in Germany ... I think Germany is taking note now of India and especially your cultural achievements. At the end of the day what makes a relationship between people stronger is the cultural interchange and therefore the interchange of people who help form culture. I am very glad it is happening this year. I would like to repeat a similar kind of chain of events in India, a year of Germany in India. I know that we have had a similar event before. But these always have to be reintroduced in a continent like India.

German Direct Investment in India, according to official Indian statistics, has dropped since 2000. Why is this? What are the new sectors attracting German investment?

To begin with, I don't think that the Indian figures are reflecting the whole picture. And the Reserve Bank of India knows that and obviously they are working to change that. Because what they have been doing up to now is that they have only noted fresh money — new investments. German companies are known not to take out money — not just to repatriate [profits] — they reinvest money in that particular country. This is because German investors are interested in long-term relationships. And the German companies like Bosch and Siemens have always reinvested earnings into India. And these reinvestments are very often not considered [when RBI looks at GDI]. If you say that German investments have been declining, it is not true at all. They have been increasing tremendously but nobody has the right and proper statistics because the reinvested earnings are not part and parcel of it. Obviously one has to develop a method to also include the reinvested money.

Are you satisfied with the level of GDI in India?

One can always do more. In that sense I am not satisfied. I think what is needed is to use the momentum that we have gained and preach to everyone that for the German companies to grow it is important to be present in the dynamic markets of the world and India is certainly one of those dynamic markets.

The joint statement also spoke about organising a Ministerial Conference on Science and Technology in the first half of 2007. What will be the focus of the conference and where will it be held?

We don't know that yet. We are working on it. Germany will have the presidency of the European Union in the first half of next year. We do not only have a strategic partnership with India but also between the European Union and India. And thinking about possible future orientation ... science and technology is one of the fields where one could have a give-and-take relationship. Given the tremendous headway that India has made in the last few years, obviously the relationship has long ceased to be a one-way street.

Science and research is one field where the Europeans can also learn quite a bit from Indians. Not just in the field of IT and software, but also in biotechnology, bio medicine, etc. Nuclear technology — where India is leading the way. So we thought that this is one of the fields that we should have a tie up at the Ministerial level.

Will it be possible to include coaching Indians to play football as part of the bilateral cooperation efforts?

If there is a request from the Indian side, yes, we would look at it. There are many coaches in Germany who, I am sure, would be willing [to coach]. I can see a great deal of enthusiasm in the country for football.

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"Science is one field the Europeans can learn quite a bit from Indians"

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