Mohan Murti

India at Hannover is not just about business and investment. It will glass-case a kaleidoscope of culture, cuisine, music and dance. The blossoming economic and business relationships between India's rapidly emerging market and Germany's massive economy is vital. India has played an important role in the WTO and Germany recognises and supports the contribution. We need to pool our resources with Germany and ensure Germany's backing on issues such as the removal of farm subsidies.

FILE PICTURE of the Commerce and Industry Minister, Mr Kamal Nath, unveiling, in New Delhi, the logo `India' partner country for the Hannover Technology Fair 2006.

While the Maha Kumbh Mela occurs in Allahabad once every 12 years, Germany's Hannover Technology Fair 2006, opening onMonday, will have India as the Partner Country after a gap of 21 years.

The Fairis the single biggest brand-building opportunity for India. The Hannover Fair, where there will be a confluence of the crème de la crème of India and Germany, will experience the elixir of trade and business partnerships. India's rising economic status and emergence as an innovation and high-end manufacturing hub will be in the spotlight, at Hannover. Reliance Industries, Ashok Leyland, Bharat Forge, along with over 300 companies in all, will represent Corporate India, at the Fair. An Indo-German Business Summit will focus on the `opening markets for trade and investment'. India at Hannover is not just about business and investment. India will glass-case a kaleidoscope of culture, cuisine, music and dance. The blossoming economic and business relationship between India's rapidly emerging market and Germany'smassive economy is vital.

There are tremendous opportunities for the two countries and these can only grow in the years to come, as Germany occupies an ever-important role in the EU and as India's economic reforms progress further.

Here are some thrust areas:

Associate in EU

Since Germany now plays a fundamental role in redefining Europe and is also one of the principal trading partners of India in the EU, we need to seek German support in securing for India the status of an `Associate'to the EU.

German Mittelstand

`Mittelstand' is very significant in the German economy. It is well reflected in the fact that 95 per cent of enterprises in Germany in the field of chemical industry, machine building, manufacturing of motor cars, electrical and optical instruments belong to small and medium enterprises sector.

The German `Mittelstand' has top class technologies that can be a great know-how and technology pool for India. Enormous opportunities exist for Indian companies looking for investment as strategic partners or even 100 per cent acquisitions.

In today's globalised and liberalised world, technology and competitive muscle together have become the force of change and are essential for growth. India has made some very good achievements in this regard. In this context, there is need for close cooperation between German DIN (Standards Institute) and the Indian BIS (Bureau of Indian Standards). Such a strategic partnership will benefit both economies. There is also a need to encourage exchange of experts to discuss matters such as quality assurance, environmental and consumer protection, occupational health and safety, conformity assessment, standardisation and legislation.

Outsourcing and off-shoring

These have become standard practice in manufacturing worldwide. But in the service sector, it is still something of a novelty in Germany, though that is rapidly changing. Germany's off-shoring sales volume currently amounts to about 850 million euros. An increase of more than 22 per cent is expected over the next five years, and it is a development that cannot be halted.

Though India is still the main destination for off-shoring projects (it has 90 per cent of the Western European market). Contractors from Eastern Europe are gaining ground. Germans do feel a cultural proximity to Eastern European countries.

In many Eastern European countries, German is spoken well enough to communicate on a working level. Indian companies must quickly forge joint ventures or strategic investments into countries of Central and East Europe.

Review Green Card

Graduates from India's elite universities are sought-after recruits for the world's high-tech businesses. Germany needs to review the "green-card" scheme to make it more attractive to top rated Indian "techies".

Environment

According to the UN Conference for Climate Change in Bonn, India will not be able to commit to greenhouse gas emission targets when the first phase of the Kyoto Protocol, designed to combat global warming, ends in 2012. When Germany was reunified, the Elbe was the most polluted river in Europe. Today, the salmon and people have returned. India needs to tapGerman expertise and knowledge in areas of environment management and sustainable development.

Biotechnology

A biotechnology revolution taking place in India, which is destined to be the biotechnology nucleus of the world. This is an area with very little German presence. Worldwide, German biotechnology and genetic engineering is second only to the US.. It is one of the most innovative sectors in Germany and posts above-average growth rates.

There are several German Life Science companies looking for strategic alliances and partnerships. Indian Life Science companies must, therefore, lock into partnerships where there is inter dependence for growth.

WTO and agricultural subsidies

India has played an important role in the WTO and Germany recognises and supports the contribution. We need to pool our resources with Germany and ensure Germany's backing on issues such as the removal of agricultural subsidies.

Bollywood Ho!

Last Friday, 8-15 p.m., the prime time film in the German TV channel RTL 2 was Hum-Tum, starring Saif Ali Khan and Rani Mukerji. Yes, most Germans, who never were used to watching Indian films are now glued to their idiot boxes watching Bollywood soap operas each week. Globalisation and the entertainment value of Bollywood films have helped it get a German fan-base.

(The author is former Europe Director, CII, and lives in Cologne, Germany. Feedback may be sent to mohan.murti@t-online.de)

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