Although German investments in India amounted to just Rs 8.5 billion andGermany slipped to number nine among top investors in 1998 after occupyingthe fifth position in 1997 and 1996, the CII is confident this trend hasbeen checked.

Mohan Murti, the Cologne-based CII director who played a key role inorganising Sinha's visit, said the vision and clarity with which the financeminister spoke in Berlin and Frankfurt had sent a strong message to Germanindustry that India was moving ahead with its reforms and was keen to courtGermans. At the two investment roadshows in Berlin and Frankfurt, there wasan expression of keen interest from small and medium-sized German companiesto invest in India. The interaction between German entrepreneurs and theirIndian counterparts present at the roadshows was unprecedented, Murticlaimed.

Germany has retained its position as India's second largest partner inindustrial cooperation with over 942 collaborations between 1991 and 1999,of which 124 collaborations were signed during the 1998-99 fiscal yearalone. Over 70 per cent of these are financial collaborations, the restbeing technical tie-ups, observed Murti, for whom this new trend poses astark contrast to the early 1990s when Indian industry gave more importanceto the transfer of technology.

Murti said a survey in March 2000 of 88 German CEOs, top decision makersdrawn from 14 large German multinationals, three large service companies and71 small and medium-sized enterprises (SMEs) clearly showed that the mood inGerman industry favours signing agreements with Indian companies. EighteenSMEs are scouting for contract manufacturing partners, with the CII playingan intermediary role in identifying suitable allies for them.

Murti said, four German multinationals (MNCs) which had formerly beenhesitant to expand in India are at present involved in establishing theirAsian regional headquarters in the country. He claimed another four MNCs atpresent located in East Asian countries plan to move their regionalheadquarters to India.

India's poor infrastructure, which was often cited in the past by Germanindustry as a major obstacle in the way of investments, is now replete withbusiness potential and has aroused German investors' interest in India. FiveGerman corporations are now building or modernising airports, roads, bridgesand ports in India, Murti said.

One area which generates high interest in Germany is information technology(IT) in which India clearly dominates. German companies are conscious ofthe role played by Indian software gurus in the global markets. According toMurti, eight leading German software vendors are currently looking forpartners in India for software contracting services. The specific areas ofinterest are business management software, design conversions, operatingsystems software, configuration management, application tools,artificial intelligence, object case, application solutions, banking, end-user data access and insurance software. He said the CII office in Colognehad built a software business opportunities portfolio (SBOP) and was tryingto identify suitable business partners to carry out some major projectswith European public utilities and service companies.

The CII is also assisting eight top Indian software companies to set up basein Germany and other European countries. Murti said CII would be organisinga major IT buyer-seller meet involving some 25 Indian software companies topresent them to the German vendors as potential partners. The CII seesGermany as a strategic bridge-head for Indian companies to get access to thebigger European market.

-- (India Abroad News Service)