Indian PM Modi talks trade ties with Merkel
October 5, 2015, 12:44 pm

German Chancellor Angela Merkel addresses the press ahead of talks with Indian Prime Minister Narendra Modi [Image: Germany Mission in India]

The two leaders discussed “trade and investment, partnerships in manufacturing, skilling, clean energy, infrastructure, innovation and education”.

Europe’s economic powerhouse will provide 1 billion euros in aid for solar projects and green energy corridors over the next five years, the two sides announced on Monday.

“Prime Minister Modi expressed appreciation for Germany’s assistance in developmental projects over the years, including the new German commitment of 1.490 billion Euro. The leaders expressed satisfaction at the successful implementation of the “Green Energy Corridors” Project, which has been expanded by 400 million Euro. In this context, India welcomed Germany’s readiness to assist in meeting its renewable energy target under the umbrella of the Solar Partnership with 1 billion Euro over the next five years,” said a joint statement in New Delhi.

Slowdown in China, and other major economies including Europe, is threatening German exports. Germany is also battling Volkswagen AG’s emission scandal.

The Indian government announced last month it will examine whether Volkswagen AG met local emission standards following revelations that VW’s “clean diesel” cars in the US used software intended to defeat pollution tests.

Meanwhile, on Monday, Germany and India also vowed to renew efforts to reach an Indo-European free trade pact.

“They [Modi and Merkel] also underlined their strong commitment to the EU-India Broad Based Trade and Investment Agreement and committed to bring about a resumption of the negotiations as soon as possible,” said a joint statement issued after the leaders meet.

India and Germany also signed an agreement to fast-track business approvals which would be fully operationalized by March, 2016.

Germany has also provided 360 million euros for sustainable urban development in 2015.

Indian Prime Minister Modi has sought to drum up the inward investment he needs to bring to life the appeal to “Make in India”.

India, Asia’s third-largest economy after China and Japan, needs faster economic growth to create work for the one million young people who enter the workforce every month.

TBP