Skip to main content

No ease in doing business in India: Reliance think-tank expert quotes top German CEOs who were in India

Modi with Merkel at Hanover in Germany: April 2015
By Our Representative
A senior expert, working with the powerful Reliance Industries Ltd (RIL)-run think-tank has said that the top Germans businessmen who had accompanied German Chancellor Angela Merkel to India early this month have outspokenly declared that Prime Minister Narendra Modi has done little to “ease” business environment in India.
The expert, Britta Petersen, who works as senior fellow with the Observer Research Foundation (ORF), quotes Wolfram von Fritsch, Chairperson of Deutsche Messe AG.that Modi had raised “huge expectations” with his 'Make in India' campaign earlier this year at the Hannover in Germany, but “half a year down the line it seems that not much has happened to ease business in India".
Ahead of the German chancellor's vist, a survey by the Indo-German Chamber of Commerce (IGCC) on hindrances of doing business in India in 2015 lists bureaucracy (58 percent), lack of infrastructure (52 percent) and corruption (45 percent) as the main obstacles for companies, followed by tax disputes (32 percent) and lack of skilled people (35 percent), which ORF expert cites to point towards may have gone wrong.
According to the ORF expert Fritsch as also others in the 30-head strong German business delegation, who brought forward their grievances in the meeting that was jointly organised by the Federation of Indian Chamber of Commerce and Industry (FICCI), Confederation of Indian Industries (CII), IGCC, and the Asia Pacific Committee of German Business.
Peterson says, Amitabh Kant, secretary for Industrial Policy and Promotion, may think that "the process of growth" in India has just begun, but German CEOs rather seemed to believe “rating agencies such as Fitch, Moody's and recently the Asian Development Bank (ADB) that cut down India's growth forecast to 7.4 percent from 7.8 percent for this year.”
According to the expert, “For them, this is more than a statistic exercise. Many of the German companies that are already present in India, especially the car and machine building industry, pointed out that they already have over-capacities in India built up during the heydays of the UPA government. And they are afraid to get disappointed by the India story for a second time.”
“Slower economic growth worldwide and a less bullish outlook on India led to a slow-down of the annual trade volume between the two countries. Instead of cracking the much awaited 20-billion Euro mark, it is staggering around 16 billion Euro this year”, says the expert.
“This is all the more regrettable since Germany as one of the leading economies worldwide can play a major role in making Modi's 'Make in India' campaign successful. During the last ten years, German companies have invested more than five billion Euro in India, while Indian companies invested four billion in Germany, conversely”, adds the expert.
The expert quotes Hubert Lienhard, Chairman of the Asia-Pacific Committee of German Business and CEO of Voith, a family-owned mechanical engineering company to say, "At the moment my own company has 20 percent more capacity than we need in the country. I hope that we will meet again here in one year and all the plans of the Indian government have been transformed into action. Then we will continue to invest."
The expert quotes Wolfram von Fritsch of the Deutsche Messe AG as saying that admits he is “already checking on other countries such as Indonesia because a major project that he had planned near Delhi seems to be going nowhere.”
Others had a similar view: Catharina Claas-Muehlhaeuser, who heads the Board of Directors at Claas, one of the world leading producers of agricultural machines, says, "Without infrastructure we will leapfrog nowhere". Adds Siemens CEO Joe Kaeser, says. "Everywhere in the world you have to develop energy and infrastructure first, then comes industry".
“Siemens has been in India for almost 100 years and Kaeser had travelled to India five times this year because his company wants to sell technology for smart cities on a large scale.”, the expert says, quoting him further as saying, "Making one single project work is better than any talk."

Comments

TRENDING

Missed call drive for VVPAT verification follows online plea to "pressure" poll panel

By Our Representative
Several political activists have begun a new campaign, asking concerned citizens to give a missed call on 9667655855 to “support the demand that 2019 Loksabha elections must be declared only after verification of 50% electronic voting machines (EVMs) with Voter Verifiable Paper Audit Trail (VVPAT) receipts.” The effort, supported by civil society networks across India, is meant to "further pressure" India's election machinery to ensure that the poll outcome becomes more transparent.

Now, top Gujarat "litterateur" close to Modi says: Godse was patriot, so was Gandhi

By Rajiv Shah
A little over a week after Prime Minister Narendra Modi criticized BJP candidate from Bhopal Pragya Thakur for calling Nathuram Godse a patriot saying he would never forgive her for the remark, a top Sangh Parivar ideologue, known to close to Modi in Gujarat, has supported her, saying her statement should be seen “within a context.” Thakur won from Bhopal by more than 3.5 lakh votes defeating her nearest rival, veteran Congressman and ex-Madhya Pradesh chief minister Digvijay Singh.

Opposition refuses to legally challenge EVMs amidst plans of "back to ballot" protest

Counterview Desk
Even as opposition to the use of electronic voting machines (EVMs) allegedly to rig polls is growing, a group of prominent citizens who have come together to form the EVM Virodhi Rashtriya Jan Andolan has controversially called for a national protest against EVMs on May 30, demanding future elections should be held only on ballot paper.

When a Pak scribe said Modi has 'proved' Jinnah’s two nation theory right...

By Zafar Agha*
It was around nine in the morning on May 24, 2019, a day after Prime Minister Narendra Modi stormed the Lok Sabha with 300-plus MPs. It was a call from a journalist friend, Muzamal Suhrawardy, from Lahore, Pakistan. I ignored the call. We liberals had a depressing day the previous evening as the opposition to Modi and BJP collapsed. The results belied reports from the ground and even assessments made by colleagues.

It's now official: Akshay Kumar has not been conferred honorary Canadian citizenship

By Our Representative
It is now official. Super-star Akshay Kumar has not been conferred any honorary citizenship by Canadian authorities, as claimed by him ahead of the 2019 elections. In reply to a query by Roshan Shah, who is a Canadian citizen living in Waterloo, Ontario, and belongs to Ahmedabad, the country’s authorities dealing with issues related with immigration, refugees and citizenship in Canada have said that only six persons have so far been granted honorary citizenship.

If EC's credibility is under question, shouldn't one "assume" EVMs might be tampered?

Counterview Desk
Gauhar Raza, scientist, documentary film maker and poet; senior human rights activist Shabnam Hashmi of the Act Now for Harmony and Democracy (ANHAD); military veteran Major Priyadarshi Chowdhury (retd); and Sucheta De and Sandeep Saurav of the All India Students' Association (AISA), have asked “individuals, organisations and people's movements” to send their endorsement to an appeal they have prepared on Electronic Voting Machine (EVM).

Common thread of Modi, political Hinduism, nationalism? 'Contest' of ideas isn't over

By Salman Khurshid*
Losing the 2019 election and that too in a somewhat extreme manner has confronted us with unexpected challenges: Our leadership has naturally taken it very hard and to heart but with suggested options that we cannot imagine or contemplate. Hopefully the emotions will settle soon and give us the direction to pick up the pieces and march again.

Savarkar in Ahmedabad "declared support" to two-nation theory in 1937, followed by Jinnah three years later

By Our Representative
One of the top freedom fighters whom BJP and Prime Minister Narendra Modi revere the most, Vinayak Damodar Savarkar, was also a great supporter of the two nation theory for India, one for Hindus another for Muslims, claims a new expose on the man who is also known to be the original proponent of the concept of Hindutva.

Govt of India overestimated GDP by 2.5%, must restore reputational damage: Ex-CEA

By Rajiv Shah
Top economist Arvind Subramanian has said that changes brought about by the Government of India in data sources and methodology for estimating the country’s gross domestic product (GDP) since 2011-12 “has led to a significant overestimation of growth”. While official estimates place annual average GDP growth between 2011-12 and 2016-17 at about 7 percent, the actual growth may have been 4½ percent, ranging from 3 ½ to 5 ½ percent during the period, he adds.

Will minorities in India be 2nd class citizens? Wake up call: Be a 'communicating' Church

By Fr Cedric Prakash sj*
India today is at a defining moment of her history. There is so much that has taken place in the past five years (and particularly in the last ten days)- that several citizens of the country are genuinely concerned about the future of the country! Will democracy survive? Will key elements of the Constitution be changed?