Ahead of Schroeder's visit, Germany offers business tips

new delhi: ahead of german chancellor gerhard schroeder's visit to delhi, germany has complained that india had not integrated enough into the world economy. german economics and technology minister werner muller says indo-german economic relations, though good, were ``far below the potential which one would expect from the size of the indian market on the one hand and the global integration of the german economy on the other.'' ``a major factor here,'' he says in a signed article for the newsletter brought out by the german embassy here, ``is the continuing lack of integration of india into the world economy.'' related stories muller is part of the delegation which will accompany schroeder on the visit, beginning sunday.though the dominant theme of the trip might turn out to be the us-led war against terrorism, it has a major business component. over 30 german business leaders are also expected to be part of schroeder's delegation. the chancellor will deliver the keynote address at a panel discussion between indian and german businessmen. he will also address the indo-german business chamber. muller's article begins by focusing on the improvement in indo-german trade over the years, but clearly germany feels that is not enough. since 1991, a ``remarkable'' number of walls protecting indian economy from the outside would have been dismantled, but ``more remains to be done.'' muller advises india to put in a ``sustained effort'' to improve its position in the world economy. though import duties have been drastically reduced, germany says, ``they are still very high in an international comparison.'' he takes note of moves towards freer bilateral trade, but frowns at `new' barriers, like those which affect the import of second hand machinery. ``there are bureaucratic barriers in the way of business, including cumbersome customs formalities, and commerce continues to suffer from transportation problems within the country.'' ``nor can one overlook the tangible restrictions on the movement restrictions on the movement of people,'' he says. the reference is to the frequency and capacity of flights between the two countries, though he admits there has been improvement on that count. according to german figures, indo-german trade has risen by 70 percent in the last 10 years, reaching its highest level of 8.8 billion deutsche marks (about us dollars 4 billion) last year. german investment in india amounted to just dm 2 billion (us $ i billion) at the end of 1999, which is up 45 percent over the previous year but less than 3 percent of german investment in developing countries. muller notes the indian complaint that other countries showed bigger increases in their investment in india in the 1990s. but he argues those figures reflected ``isolated large projects.'' ``german industry is traditionally represented to a great extent by small and medium-sized firms which, of course, transfer less capital, but a broader variety of expertise.'' he advocates ``mutual giving and receiving'' in foreign direct investment. indian investment in germany was just as welcome, he says. ``at a level of dm 143 million (us $ 65 million) at the end of 1999, it is not particularly high.'' but he is happier with the increasing number of indian information technology firms which come into the german market. ``that is a welcome boost in addition to the just under 2000 indian it specialists who have so far come to germany via the so called `green card.' '' significantly, schroeder's schedule includes a trip to india's it capital bangalore and visit to it giant wipro's plant. besides muller, interior minister otto schily and minister of state at the foreign office ludger volmer will be part of the schroeder's delegation. it will also include five members from the bundestag, the german parliament. schroeder will get a ceremonial welcome at the rashtrapati bhavan and be hosted for lunch by president k r narayanan. later he will meet prime minister atal behari vajpayee.