Enhancing Indian Ties
October 30, 2007
After a ceremonial welcome with a full guard of honor in the forecourt of the majestic presidential palace in the Indian capital New Delhi, German Chancellor Angela Merkel announced that she hoped her trip would enhance strategic relations in the areas of science, business and political cooperation.
The chancellor, referred to as "a great statesman, a world statesman and a great friend of our country" by Indian Prime Minister Manmohan Singh upon her arrival, continued her four-day tour by laying a wreath at the memorial to Mahatma Gandhi before launching a mobile science exhibition on a train that has been jointly developed by the German and Indian governments in partnership with private enterprises.
The train is scheduled to visit 57 stations, some in remote parts of India, over the next few months, to popularize science among young Indians. The German chancellor also called on Indian President Pratibha Patil and Vice President Hamid Ansari.
Merkel to sign defense, sci-tech agreements
Merkel, who is on her first visit to India as chancellor, was set to meet with Singh for discussions on bilateral, regional and global issues later on Tuesday before signing a number of bilateral agreements in the areas of defense cooperation, science and technology and intellectual property rights.
The chancellor is accompanied on her visit by German Education and Research Minister Annette Schavan and a 30-member delegation of top business leaders representing companies like European aircraft manufacturer Airbus, conglomerate Siemens, rail operator Deutsche Bahn and reinsurer Munich Re.
Trade and investment is a special focus area of Merkel's visit and the chancellor has already made it clear during her visit that Indian investors would be sincerely welcomed in Germany and has requested that India ease trade barriers for German business and investment.
German companies vying for slice of large pie
German firms are keen on a share of the 360 billion euros ($511 billion) that India plans to invest in infrastructure and other projects in the next five years. Besides infrastructure, sectors like science and technology, energy, research and development and information technology are the areas in which German firms are most interested.
Bilateral trade passed the 10 billion euro mark in 2006, and Germany is the seventh largest investor in India with a total inflow of $1.9 billion between 1991 and June 2007.
Merkel will take her business roadshow to the economic center of Mumbai on Wednesday where she will attend a meeting of German and Indian company leaders.
Airbus chief optimistic of Eurofighter contract
One member of the business delegation accompanying the chancellor is Airbus chief Thomas Enders who announced on Tuesday that he was optimistic about the chance to supply the Indian Air Force with 120 Eurofighters.
"The Eurofighter ranks among the most modern combat aircraft worldwide," said the former CEO of the European Aeronautic Defense and Space Company (EADS).
India has budgeted $10.4 billion to buy 126 new medium multi-role combat aircraft for the air force starting in 2012 and the Eurofighter consortium which builds the multi-role Typhoon fighter jet is hoping to land the lucrative contract ahead of its US, Russian, Swedish and French rivals.
Enders also saw possibilities for contracts on civilian aircraft, especially medium-haul planes, with the surge in air traffic in India.
"Indian airlines are one of our most important customers in Asia and worldwide," said Enders. "We are in several negotiations with Indian airlines."
Airbus, however, is not just interested in selling airplanes in India, but is looking to develop pilot training centers, Enders added. Estimates put the number of pilots needed by India at around 1000 a year.