German Chancellor Angela Merkel and Indian Prime Minister Narendra Modi led their respective teams for the third inter-governmental consultations in Hyderabad House where they signed 18 MoUs and letters of intent and a new German assistance package for over 1 billion euros for solar projects in India, making it part of an overall commitment of more than 2 billion euros.
They also discussed on a variety of issues that included deepening of bilateral engagement in defence, security, education, renewable energy, skill development and agriculture. Both the countries pledged to revive efforts to reach an Indo-European free trade pact after talks fell apart this year, and also struck deals to promote clean energy. While neither of the leaders openly addressed the media about resuming talks on a free trade agreement between India and the European Union, this is considered to be Merkel's most significant 'deliverable” visit to New Delhi.
A joint statement issued after their three-hour long talk said, “committed themselves to bring about the earliest possible resumption of talks.” Germany is looking to expand its presence in India, proof of which was given by the presence of bosses of household companies like Siemens, Airbus, E.ON and Thyssenkrupp in the Chancellor's delegation. Germany will provide more than 2 billion euros in aid for solar projects and green energy corridors, or high efficiency power grids, in an effort to promote sustainable development. India and Germany has also signed an agreement to fast track business approvals, providing German firms with a single point of contact to help them escape red tape. The first of its kind agreement comes in favour for India as Modi seeks to attract foreign investment to support his 'Make in India' drive to boost industrial investments and create skilled jobs. Indian Commerce secretary Amitabh Kant said that under the fast-track arrangement, India “would monitor German companies”. “The prospects are huge because India is just beginning its long spurt for growth,” he said to a business round table. Merkel said, “Very glad that we were able to sign the fast track agreement here,” adding that “the speed with which you provide licenses to companies to set business here has increased.”
In their joint statement, Modi said, “We see Germany as a natural partner in achieving our vision of India's economic transformation. German strengths and India's priorities are aligned... Our focus tends to be on economic ties. But, I believe that in a world of seamless challenges and opportunities, India and Germany can also be strong partners in advancing a more human, peaceful, just and sustainable future for the world.”
Merkel arrived in India on a three-day visit, accompanied by a large delegation of six cabinet ministers and business persons. Her visit to the country comes at a time when she stands strong as a serious contender for this year's Nobel Peace prize for her prominent contribution in the ongoing migrant crisis and the Greek financial problems.
Received by the Minister of State for Finance Jayant Sinha, she was given a ceremonial welcome at the Rashtrapati Bhavan. Modi and Merkel's meet was sealed with the MoUs and letters of intent along with an assistance package for over 1 billion euros for solar projects in India. Modi said, “We look forward to a concrete outcome at COP21 in Paris that strengthens the commitment and the ability of the world, especially of poor and vulnerable countries, to transition to a more sustainable growth path.”
