Web-Seminar: Indo - German Business promotion Challenges and Opportunities – Post Covid 19 on Friday 5th June 2020
The history of relation between Indo-German is marked by decades of friendship and cooperation. In 1956, the diplomatic tie-ups had been found by India’s first Prime Minister Jawaharlal Nehru and still today the collaborative relationship is achieving all its bi-lateral trade goals.
End of Second World War, India was one of the first countries to establish diplomatic relation with German. Today, the unprecedented Covid 19 situation has disrupted the supply chain network between India and Germany. In this uncertain situation leaders from both countries are looking for opportunities and leveraging India as a sourcing hub to Germany.
In this context, PHDCCI’S International affairs and trade fairs division, in partnership with India office of Konrad-Adenauer-Stiftung organized an interactive video conference on “India – Germany Business Promotion, Challenges and Opportunities – Post Covid 19” on Friday 5th June 2020 with H.E.Mrs.Mukta D Tomar, Ambassador, Embassy of India, Berlin, Germany delivering the keynote address.
In his opening remark, Dr D K Aggarwal, President, PHDCCI, mentioned, India seems to be a trust worthy global partner. Germany is sixth largest trading partner and seventh largest FDI investor in India. With that so, 1600 collaboration, 500 plus joint venture and investment up to $ 10 billion have been incorporated by Germany in India. Further, he briefed about the PHDCCI work in relation with Indo-German business, and welcomed H.E.Mrs.Mukta D Tomer to give her insights on same.
Speaking on the German government initiatives in a view to revive the current economic situation, H.E. Mrs. Tomar, mentioned, Germany was the first country to announce the economy packages and today, country is looking for economic recovery in 2021. Further, the Indo – German economic relations has been on a rise. Addressing the current situation, she believes, it is right time for India to build and leverage its competitive advantage as Germany is open to business with India and organizations like VDMA and PHDCCI can play vital role in terms of building more collaboration between India and Germany.
Mr. Peter Rimmel, Resident Representative to India of the Konrad-Adenauer-Stiftung highlighted the history of Indo-German collaboration and how Germany found India as a trust worthy partner. During the pandemic, both the governments are working hard to revive the economy effectively.
Further, the session enriched by H.E. Mr. Mark Hauptman, Member of the German Parliament and Mr. Bernhard Steinruecke, Direct General, Indo German Chamber of Commerce in view of dealing with collaboration between India and Germany in this uncertain situation. H.E. Mr. Hauptman highlighted five key trends for stronger partnership between India and Germany.
- Supply Chain Management
- Creating Value Market
- Boost to Digitalization
- Global Skill Work Force
Mr. Rajesh Nath, Managing Director, VDMA India highlighted the impact of Covid 19 on global economy and trade, and opportunity for India to be as global source for the European market. He mentioned, the impact of the pandemic is now being felt throughout the mechanical engineering industry in Germany. As per the results of the fourth VDMA survey (done in the last two months), among its member companies - Nine out of ten companies see themselves as being affected by the economic consequences of the pandemic. By mid-April, a good three-quarter of those surveyed had already recorded a noticeable or serious drop in orders or cancellations, and at the beginning of May this figure climbed even further to 85 percent.
According to the survey, in which 724 companies took part, a look at the supply chain promises some hope a slight easing of tension is apparent. In mid-April almost half of the companies still stated that they had been noticeably or seriously affected on the supply side.
In India, as per the recent Business Climate Survey conducted by VDMA amongst its members in India, 80 percent of the respondents mentioned that their business in badly impacted, for 19 percent the business was satisfactory and only 1 percent reported business as good. This is in sharp contrast to the previous survey done in autumn 2019 where only 29 percent reported business as being bad.
Further, he said, this is the time for India to analyze and work on where we are good at and where we have the raw materials and resources needed to quickly reboot the manufacturing industry. The need is for the organizations to look beyond conventional sectors like automotive, power, oil & gas and focus on emerging sectors like medical, electronics, food processing, packaging, agriculture mechanization, logistics, environment and waste management.
Mr. Nath concluded his session with a famous quote from Nobel Laureate Rabindranath Tagore - “If I can’t make it through one door, I will go through another or I will make a door. Something terrific will come, no matter how dark the present is”
Speaking on Healthcare and Pharmaceutical sector, Mr. Pradeep Multani, Vice President, PHDCCI, highlighted the opportunities and praised both Indian and German government for an outstanding proactive measure against Covid 19.
The session was moderated by Mr. Naveen Seth, Principle Director, PHDCCI and witnessed a participation of more than 140 Industry members including 40 German companies operating out of India.
VDMA India thanks H.E. Mrs. Mukta D Tomer and the experienced speaker, who shared their views on several topics and would also like to compliment PHDCCI’s for organizing this web-seminar so efficiently.