At the IWS Sommergespräch “Make in India – a lion’s step on the Indian economic boom?” on June 19th 2017, high-ranking representatives from business, politics and academia discussed the potential and challenges of German-Indian cooperation.
Our speakers and panelist of the evening were:
Ambassador Thomas Matussek, Vice President of the Internationaler Wirtschaftssenat e.V.
Ambassador Dr. Martin Ney
Bernhard Steinrücke Director General of the Indo German Chamber of Commerce
C.S. Mathur President of the Indo German Chamber of Commerce
Prof. Dr. Stefan Kooths, Member of the Executive Committee of the Internationaler Wirtschaftssenat e.V. and Head of the Forecasting Center of the Kiel Institute for the World Economy
To give you an insight look of this interesting event we have compiled the most important facts:
Theses of the speakers
The world out of joint
There are more violent conflicts around the globe then ever since world War II. Currently there are 47 conflicts according to the Munich Security Conference/March 2017.
We have to ask ourselves the question – How to bring order into it?
We Europeans have to take the faith in our hands. We have to look for other partners. We don’t need to switch them but complement them.
India is an anchor of stability in South Asia in the world out of joint!
The anti-free trade attitude of the current US President will make it extremely cost pay for the United States. The vital interest of their own economy will be hurt!
India is a very young economy with an extremely low dependency ratio!
India is the perfect partner for Germany to support Africa! We shouldn’t leave Africa to China!
India and Germany are made for each other!
India needs economic reforms – Germany has the experience i.e. dual education.
Our digital world changes many market dynamics, especially the IT Market. Rather than having remote developers, they should move to the country and contribute to that country’s economy though rent, taxes and consumption.
Brexit also creates an opportunity. The potential continuation of the free labour market will enable Indian employees to come into Europe. Germany’s demographical change creates a need for 400.000 immigrants a year. We need to change our attitude towards immigration to have a chance. There are 1.600 university courses in English and the threshold for young professionals to come back is very low. These factors would serve the immigration need.
FTAs don’t have winners and losers. A surplus that only county physical goods, but disregards services is nor real nor correct. When German companies go abroad they don’t only create jobs they also invest in the countries and skill the workforce. In India alone there are 600.000 people employed by German companies.
Germany and India are two powerful countries and should work together more closely. Especially in the context of industry 4.0. Their matching areas of expertise can create high value.
Free and open markets are crucial for India. We should not be concerned that people will not participate in this prosperity creating process. The problem is, it’s very difficult to push this through policy makers – they distrust free markets.