German Envoy Ackermann upbeat on Indian business climate; says key Indo-German talks this year

The German Ambassador Dr Philipp Ackermann has said that Delhi will host the next round of India-German Intergovernmental Consultations (IGC), which is led by the German Chancellor and Indian prime minister along with respective ministers from both sides.

Speaking to our diplomatic correspondent Sidhant Sibal, he said, "That's a bi-annual exercise. The last conversations were in 2022 in Berlin and now, I think, in the second half of October, more or less, we hope. Dates are not fixed yet."

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The ambassador lauded the Indian business climate andexplained, " You see almost 80% of German companies in India want to put more money into India to expand business here..There is a great respect for the solid Indian growth rates, which is, you know, basically the basis for a growing business".

According to a survey by KPMG in Germany and the Indo-German Chamber of Commerce Nearly six in ten German companies are planning to increase their investments in India during the current financial year.

These were findings of the "German Indian Business Outlook 2024" which pointed to low labour costs, political stability and qualified specialists as the key region that makes India attractive to German Businesses.

Sidhant Sibal: My first question to you is we have seen this report, What does this report talk about regarding the business climate here in India and the opportunities for the German businesses?

Dr Philipp Ackermann: So, you have seen the report, the survey, it is the 3rd survey in a row and what we see is an enormous increase in trust and, you know, belief in the Indian business environment. We see a tremendous idea and, an enormous willingness to invest in India, to reinvest in India. You see, almost 80% of German companies in India want to put more money into India to expand business here, and I think that shows three things. First of all, there is a huge potential in the Indian market, which is seen by the term business. There is a great respect for the solid Indian growth rates, which is, you know, basically the basis for a growing business and third, not least, the stability of the environment. We have seen the elections, we have seen the smooth, new government and I think people are very happy about how India has its anchor of stability in the region, giving them an opportunity to expand their business. So that's very positive and I'm very happy that we are on the best ever level between India and Germany when it comes to economic relations and others.

Sidhant Sibal: So you mentioned the new government as well. Now India and Germanyhave seen high engagement, and a lot of outcomes as well. How do you see the relationship between India and Germany going forward?

Dr Philipp Ackermann: So I think it's an all-time high. We have seen in the last month and years, enormous intensification of relations. We've seen various visits of our leaders. We have seen meetings all over the place, and at the same time, we have this granular structure of our relationships with all the working groups in many, many areas with Germany and India really getting closer. There is still room for improvement, of course, but I think they've never been closer now. And I think the four big items are business as we said, trade and business and that's certainly one. The second is climate change. Fighting climate change is very, very important. And I think India and Germany have concluded this partnership for green and sustainable development, which is the basis of our common effort to fight against climate change. And the third area is migration, labour migration. Indians moving to Germany to study work. And the fourth, of course, is the geopolitical environment. The world is a difficult place right now. And Indian Germany should join hands and try to make it a better place.

Sidhant Sibal: Can we see the visit of the German chancellor to India very soon and if yes, what will be the key focus areas?

Dr Philipp Ackermann: So the key focus areas I just mentioned to you, I think these are the four big chapters, many other smaller chapters. I can say that in the second half of this year, we have the Indo-German inter-government consultations. That's a bi-annual exercise. The last conversations were in 2022 in Berlin and now, this fall I think, in the second half of October, more or less, we hope. The dates are not fixed yet. We'd see the Chancellor and the group of ministers coming to Delhi and sitting down with the Prime Minister and, and the group of Indian ministers to develop a roadmap for the years to come. So I'm very happy that this will happen. And I'm looking forward to it.