Prime Minister Narendra Modi on Monday said that New Delhi is keen to develop the sectors in which Germany is strong, adding that scope and potential of development is very large in India.
"You will be able to see for yourself the winds of change in India. We are very keen to develop the sectors where you are strong. We need your involvement. The scope and potential, the breadth and length of infrastructure and related developments is very huge in India," Prime Minister Modi said, at the joint inauguration of the Indo-German Business Summit in Hannover.
"We have planned to build 50 million houses by 2022. In addition, we are going to develop smart cities and mega industrial corridors. For this purpose, we have refined our FDI Policy on construction. We have also come up with a regulatory framework for this sector. We have targeted 175 Giga Watt of renewable energy in next few years. In addition to generation, the issues of transmission and distribution of electricity are equally important for us," he added.
Speaking of the infrastructural development in India, Prime Minister Modi said that his government is currently focussing on upgrading the existing networks in the country.
"We are modernising our railway systems including signals, and railway stations. We are planning metro rail in fifty cities and high speed trains in various corridors. Similar is the case with highways. We are putting up new ports and modernizing the old ones through an ambitious plan called Sagarmala. Similar focus is on upgrading the existing airports and putting up regional airports to enhance connectivity to places of economic and tourist importance," he said.
"In financial services too, we are moving towards a more inclusive and faster delivery of financial products including bank loans and insurance. For this purpose, we opened 140 million bank accounts; increased FDI in insurance up to 49 percent and have set up MUDRA Bank. We also announced innovative schemes for insurance and pension to enhance social security for our citizens," he added.
The Prime Minister further spoke about his 'Make in India' initiative, pointing out that Germany is one of the largest foreign investors in India.
More From This Section
"We want to promote manufacturing in a big way particularly to create jobs for our youth. For this purpose, we have launched a campaign called 'Make in India'. All this is a historic opportunity for the German companies. You would already be knowing the direction of my government and the steps we are taking. We have committed ourselves for creating and improving the business environment. I can assure you that once you decide to be in India, we are confident to make you comfortable," he said.
"Germany ranks eighth among foreign investor countries in India. About 600 Indo-German Joint ventures are presently operating in India. The purpose of my being here and participating in the Hannover Fair is to highlight that there is more potential in Indo-German economic collaboration. Though we have a vibrant relationship, our economic partnership is not as much as both countries would like to have. The flow of investments from Germany is well below the potential and less than Indian investments in Germany," he added.
Inviting German companies to invest in India, Prime Minister Modi assured those present that his government has made efforts to improve the ease of doing business in India.
"Many German companies have the possibility of investing in India to take advantage of India's potentials. The potential lies in manufacturing as well as infrastructure and in skill development for that purpose. I know that the reason for this situation may not be from German side. It is from the Indian side also," he said.
"I am here to assure the German companies that India is now a changed country. Our regulatory regime is much more transparent, responsive and stable. We are taking a long-term and futuristic view on the issues. Lot of efforts have been made and are still underway to improve the 'Ease of Doing Business' in the country: reducing the complicated procedures, making them available at one platform, preferably online; simplifying the forms and formats has been taken up on war footing. Definite mechanisms for hand holding have been set up in the form of hub and spoke. Invest India is the nodal agency for this purpose," he added.
Prime Minister Modi, currently in Germany for the second leg of his three-nation tour, has vowed to remove unnecessary regulations and procedures to simplify the process of foreign investment in India, as well as to make it easier for other countries to initiate business deals.
He also attended a round table conference with German CEOs, with Voith CEO Dr.Hubert Lienhard and Bombardier Transportation CEO Lutz Bertling among those present at the meeting.
The Prime Minister arrived in Hannover after concluding his visit of France. He will depart for the final leg of his three-nation, nine-day tour on April 14, flying to Ottawa.