India needs to open up more and cut bureaucracy to attract foreign investments, a top official of German foreign trade and investment promotion said here.
“India is too reluctant still. India is very competitive, it has cost advantages. India is a high-tech country, so the Indian government has no necessity to be so reluctant for opening up more for foreign companies and investments,” the German Trade & Invest Chief Executive, Mr Michael Pfeiffer, told PTI.
Germany Trade & Invest is the agency of Germany’s foreign trade and investment promotion. It markets business and technology locations of Germany abroad, informs German firms about global markets and supports foreign companies seeking to establish presence in the country.
Asked about the expectations of German companies who plan to set up shop in India, Mr Pfeiffer said: “Expectations are that the market is liberalised, that bureaucracies are diminished. This is the number one issue for German companies coming over here.”
He further said: “Tariffs are transparent, bureaucracy is not. So if you have tariff trade barriers you can argue, you can find solutions but not with other issues and they are the real obstacles.”
Mr Pfeiffer, who is leading a delegation to promote investment from the Indian automotive sector in Eastern Germany, said that Indian automotive sector could look at investing in various automotive segments in Germany.
“Sophisticated Indian IT companies are today able to design the most modern airplanes, cars with most modern parts to it... and this is what we are longing for,” he added.
In 2010, Germany exported over €9 billion in goods and services to India and imported more than €6 billion.
Currently, there are nearly 280 companies active in Germany.
“Germany is an ideal destination for Indian companies because of its culture of innovation, infrastructure and access to entire European market,” Mr Pfeiffer added.