India, Germany agree to expand trade and investment
At the third India Germany Inter-Governmental Consultations (IGC) held in New Delhi, Indian Prime Minister Narendra Modi and German Federal Chancellor Angela Merkel renewed their determination to expand bilateral trade and investment
In a joint statement issued by both leaders after IGC, both sides noted the potential of open markets for deepening trade relations and for attracting investments. They also underlined their strong commitment to the EU-India Broad Based Trade and Investment Agreement and committed to bring about a resumption of the negotiations as soon as possible.
Recognising Germany’s key competencies in high technology and India’s growing needs, both leaders reaffirmed that technology intensive manufacturing can become a key pillar of their strategic partnership.
They agreed that new policies, including the ‘Make in India’ initiative, have the potential to open up investment opportunities for German companies and that India’s participation as Partner Country at the Hannover Messe has created a positive momentum for business.
The German side welcomed Prime Minister Modi’s commitment to improve the ease of doing business in India and the Indian decision to set up a Fast Track System for German companies in the Department of Industrial Policy & Promotion (DIPP), Ministry of Commerce & Industry, which would be fully operationalised by March, 2016. Both sides encouraged the private sector to take advantage of these initiatives to enhance trade and investment.
The leaders welcomed the closer cooperation in the area of vocational training and skills development by supporting policy reforms in the apprenticeship system including dual system pilot projects in selected industry clusters. They supported the idea of German assistance for curriculum development and VET training as well as in helping India establish a National Institute for Skill Development for Higher Learning.
Further, both sides took positive note of the resumption of negotiations for amending the existing Double Taxation Avoidance Agreement (DTAA) including the Article on Exchange of Information to enhance the elimination of double taxation and to foster financial transparency.
Recognising the importance of facilitating exchanges between people of the two countries, both sides agreed to initiate discussions on simplifying respective visa procedures and making them as easy and transparent as possible, especially for business persons, entrepreneurs and investors. (RKS)
