Indo-German trade may cross Euro 20 bn mark

India’s bilateral trade with Germany is likely to touch Euro 20 billion during the current year 2012, showing a growth of 11 per cent over the previous year, S M Krishna, external affairs minister said, here on Friday.

“We are quite optimistic of achieving a growth in our trade with Germany despite debt crisis in Europe and global economic slowdown. Germany is our largest trading partner in the European Union (EU) and our trade with them are going very strong,” Krishna told reporters at a joint press conference with visiting German foreign minister Guido Westerwelle.

Krishna discussed several issues of mutual interest with his German counterpart apart from the global financial crisis, reform of United Nations, terrorism threats before addressing the press. Stating that the sovereign debt crisis in Europe was of great concern not only to India, but also worldwide, he said as the Euro crisis had the potential of choking trade across the world, including India, Germany with a robust economy was in an enviable position to defuse the crisis.

 

“Germany is in the best position to lead the fight against the debt crisis that had deeply affected some countries in the European Union (EU) as it had as much stakes in Europe, which is the most prominent business destination for other countries, including India,” Krishna said.

Further he said, there is a need to substantially expand the resource base of multilateral development banks so that they have the fire-power to help developing countries pursue their developmental goals.

Appreciating Germany’s commitment to extend financial and political support to debt-ridden countries in Europe, Krishna said the reassurances of Westerwelle in tackling the banking crisis would provide a psychological strength to the affected countries and help them in overcoming their debt crisis. Assuring Germany’s commitment to build a better future for Europe and in stabilising euro currency, Westerwelle clarified that the EU was facing a debt crisis and not a euro crisis.

Noting that Germany is India’s most important trade partner in European Union and 150 German companies are active in Bangalore, he said his country is keen to further deepen business ties with India. “An important step would be quick conclusion of a Free Trade Agreement between the EU and India. We will continue to work on this,” he said.

Westerwelle further added, “We are striving hard to manage the debt crisis, which has morphed into a crisis of confidence. It is a debt crisis and not a euro crisis.”

Both the ministers also discussed the declarations of the G-20 summit held at Los Cabos in Mexico from June 18 to 19 in addition to the bilateral relations spanning trade, education, cultures, investment opportunities and exchange programmes.

“In addition to trade and economic issues, we discussed thrust areas between our two countries such as education, innovation and research in cutting edge sectors to enhance our bilateral relations,’’ Krishna said.