PM Narendra Modi urges German companies to explore economic prospects in India

Prime Minister Narendra Modi urged German companies to come and explore the Indo-German economic collaboration to its full potential. Modi addressed the Indo-German Business Summit on Tuesday. Germany is the first stop in his four-country foreign visit .

"About 600 India-German joint ventures are presently operating in India. They provide employment to around two hundred thousand people. However, there is tremendous potential in India-Germany economic collaboration. Our economic partnership is still below its full potential. To enhance this, we, in India, are ready with open arms to welcome German companies," Modi said at the Business Summit.

Fast-track mechanism to help German companies

To allay fears of set-up hurdles, the Indian PM informed the CEOs in attendance about the fast-track mechanism to help German companies. This system has already been used to resolve a number of issues, he said.

Modi presented India as a favourable destination for firms looking to invest. "We are on the path of making India a global manufacturing hub. Already a good eco-system exists in India for manufacturing," he said. He assured that India offers 'one of the most liberal FDI policy regimes in the world', along with skilled professionals, and government efforts to further ease business environment, among others.

"Due to these strengths, as said by UNIDO, India is already the sixth largest manufacturing nation in the world. To make it better, we are working hard on various enablers," stated Modi.

PM Modi's 'Make in India' bid for the Germans

Coming to 'Make in India' initiative, Modi said that German companies have played a crucial role in its success.

"During the Hannover Messe, specific areas for collaboration were mutually identified. This included manufacturing, skill development, railways, cleaning of rivers, renewable energy, education, science and technology. In addition, we are also implementing a strategic market entry support programme, since September 2015. It is called MIIM (Make in India Mittelstand). This is mainly to assist German Mittelstand companies in entering the Indian market. The MIIM programme has been offering a wide range of business support services. The initiative has resulted in growing interest of German companies in India," he mentioned.

GST to help Indian economy: PM Modi

Even states are keeping pace with the steps of federal government, Modi asserted, with 16 states completely implementing single window system for payments and approvals and 13 states exclusively allowing e-filing of tax returns. In his address, he informed the audience of Goods and Service Tax and how it will help with making India a digital economy.

Apart from economic issues, the talks between Modi and German Chancellor Angela Merkel covered issues like terrorism, defense, skill development and cyber security.

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