Visit of German Chancellor to India: Expansion of economic cooperation
The recent historic visit of German Chancellor Olaf Scholz to India on February 25-26, 2023, leading a team of senior officials and a high powered delegation of German companies, is expected to strengthen the economic ties between the two countries. It is the first standalone visit by any German Chancellor to India since the commencement of the Inter-Governmental Consultation mechanism since 2011.
Scholz had meetings with the Indian Prime Minister, Narendra Modi and the President of India, Droupadi Murmu. He also held a business roundtable with industry leaders from both countries in an effort to make it easier for German companies to expand investments in India. Furthermore, the German Chancellor wants to support efforts to finalise the Free Trade Agreement between EU and India.
Sectors like Digital Transformation, FinTech, IT and Telecommunication and Renewable Energies were in focus and Scholz said that the Government would like especially to encourage IT professionals from India to work in Germany. For this, he wants to facilitate the immigration of Indian experts in Germany. In this area Ebner Stolz can assist with global mobility solutions.
During the visit, India and Germany signed five MoUs, primary among those being the ‘India-Germany Vision to Enhance Cooperation in Innovation and Technology’ and ‘Letter of Intent between Department of Science & Technology and Fraunhofer Institute for Solar Energy Systems for Cooperation in Green Hydrogen and Clean Energy Technologies’ under government-government level.
In the area of energy, both sides decided to further the ties under the Indo-German Green and Sustainable Development Partnership.
Security and defence cooperation was another area of in which both sides agreed to work together.
The Chancellor said that there are 1,800 German companies currently operating in India that have created “tens of thousands of jobs” and are among the largest foreign investors. “The intention is that this will continue. These investments will be expanded and the number of employees will be massively increased. The various agreements concluded by the economic operators in my delegation are a sure sign of this” he added. Entering new markets is a special kind of challenge for companies, in which cultural aspects have to be taken into account in addition to the economic characteristics. Ebner Stolz M&A India Desk combines all the requirements for successful market entry by German companies in India and Indian companies in Germany and gives support in the areas of auditing, tax advice, legal advice and management consulting.
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