International - India & World   

Merkel’s visit may close gaps

BERLIN: Germany, Europe’s biggest economy, is seeking to change the way it has so far looked at India, with Chancellor Angela Merkel’s visit beginning next week, say top officials from both countries.

Having resolved their political differences due to the 1998 nuclear tests, they have developed a convergence of security-related interests in the region. With Germany turning the economic corner and freed from its obligations to its unified eastern part, the stage is set for an intense economic partnership as well.

Germany and India could even strengthen their bonding on the global stage as they have similar perceptions on climate change, the most fractious topic today between developed and developing countries. They already partner Brazil and Japan in the quest for seats on the United Nations’ key decision-making panel, the Security Council.

A major shift took place with the signing of a defence memorandum of understanding last year, ending Germany’s reluctance to look at India after the 1998 nuclear tests. Ms. Merkel’s Foreign and Security Adviser, Christoph Heusgen, has lost count of the number of times he has met National Security Adviser M.K. Narayanan. “Closer ties have been helped by close personal relations between Ms. Merkel and Prime Minister Manmohan Singh. She has taken on board Dr. Singh’s proposal on climate change as a long-term goal. They understand each other,” noted Dr. Heusgen.

“Both recognise that they exert a benign influence in their regions and can contribute in ways that are positive in meeting the challenges we face in common,” said Ambassador to Germany Meera Shankar. Berlin has also been helpful in eschewing the earlier intrusive approach on Kashmir and is forthcoming with its condemnation on terrorist incidents in India.

But with the world’s largest exporter registering healthy growth rates for two years, economics will form the bedrock of its ties with India. Bilateral trade increased by 39 per cent last year.

Leading the change would be Volkswagon which plans to start a plant near Pune to make one lakh cars. “This could be the largest single investment by Germany in India,” said a senior Indian official.

The German IT major SAP also plans to ramp up investment to $1 billion and use India as an outsourcing hub for a quarter of its global research and development. Two more German giants, Bosch and Siemens, are also looking to expand their business.

Munich Ray, a mega re-insurer, will be utilising Ms. Merkel’s visit to move beyond its current tie-up with the Apollo Group to enter into the non-life, non-health sectors.

Printer friendly page  
Send this article to Friends by E-Mail

Stories in this Section

Everything is proceeding as planned, says China
Official heading Karachi blast probe quits
8 aircraft lost, says Colombo
Stranded Indians in UAE promised air passage Gulf round-up
UN Day celebrations
China, Russia support Indian stand against sanctions on Myanmar
Merkel’s visit may close gaps

Copyright © 2007, The Hindu. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu