IGCC’s traditional Annual General Meeting (AGM) held at Cologne, Germany
Thomas Fuhrmann, President, Indo-German Chamber of Commerce (IGCC) and Managing Director, TÜV Rheinland (India) Pvt. Ltd., welcomed IGCC members at the headquarter of TÜV Rheinland in Cologne, for the traditional Annual General Meeting (AGM) in Germany, on June 05, 2018. Mr. Fuhrmann and TÜV Rheinland are just another example of successful German investments in India. Today, TÜV Rheinland India is present in 100 locations and gives employment to around 1000 people. It is active in inspection, testing and professional education and training. TÜV Rheinland India is among the 30 biggest German companies in India.
To begin with, Mr. Fuhrmann shared some insights from the IGCC Business Monitor, which was released that day. (German members can order a printed copy from IGCC’s Düsseldorf office and an online version can be accessed on the IGCC website).
Dr. Michael Fübi, Chairman of the Executive Board of Management, TÜV Rheinland AG, mentioned in his welcome address that TÜV Rheinland went international 70 years ago, 60% of the TÜV employees work abroad and contribute to 50% of the total turnover. He shared how he had personally gone to India, for the opening of TÜV Rheinland India’s new headquarter in Bengaluru.
Christoph Dammermann, Deputy Minister for Economic Affairs, Innovation, Digitalization and Energy of the State of North Rhine-Westphalia (NRW) gave an overview about the importance of NRW in Germany. NRW has 17 million inhabitants and is by far the biggest state in Germany. It is the industrial heartland of Germany and receives 30 percent of the total foreign investment. 100 Indian companies are currently located there. The audience was delighted to hear that the new CDU/FDP Government is focusing on collaboration with India.
Dr. Martin Ney, German Ambassador to India, reported on the good and reliable relations between the two countries and the German Federal President, Frank-Walter Steinmeier’s recent visit to India. Dr. Ney encouraged negotiations on a new Free Trade Agreement between the EU and India. He felt that the recent increase of import duties on automotive parts could have a negative impact on the industry. Generally, the economic data is very positive, with a growth forecast of more than 7 percent, but the high oil price is putting pressure on the inflation. The high public deficit and a high number of non-performing assets at Indian banks are cause for concern. The introduction of the new Goods and Services Tax (GST) created some problems for all players, but was the right step for the future and has a lot of advantages for companies, especially in the logistics sector. A positive side effect for the Indian government is that the tax income increased by 10 percent. Dr. Ney sees a lot of potential for German companies in the digitalization of India and studies of the Fraunhofer Institute and Bertelsmann Foundation offer deeper insights into this topic. As he concluded his address, the Ambassador also asked for some patience with regard to the Indian reform process, as even the Dome of Cologne was not built in just a few years.
Mukta Dutta Tomar, Indian Ambassador to Germany, spoke about the long-standing cooperation between Germany and India and highlighted the foundation of the IIT in Chennai as one good example. She sees a lot of potential in the energy sector, as Germany is one of the front-runners of the ‘Energiewende’, India ranks 4th in the production of wind energy and 6th in the production of solar energy. The biggest solar plant of the world was just inaugurated in Tamil Nadu. Investments of USD 5.8 billion have been reserved for a solar corridor and the Indian government is also investing in the Smart Cities programme. The German government has chosen Bhubaneswar, Cochin and Coimbatore as partner cities, and has released funds to support the development in these three cities. The Ambassador also spoke about the ‘Make in India Mittelstand’ initiative, especially designed to support German investors in India.
The keynote speaker on the occasion was Arundhati Bhattacharya, the immediate past Chairperson of the State Bank of India. She elaborated on the huge Indian market and potential for business, keeping the young Indian population in mind. The per capita income in China is four times higher than in India, and India is on a very similar track of reforms as China, so India is set for growth. As the young population needs to be trained and education is essential for a better future, the Indian government has started many initiatives like ‘Skill India’ and ‘Digital India’. The ‘Aadhaar Card’, an identity card for millions of Indians, has also been introduced. Agro-business is an area where chances are often underestimated, with 600,000 tractors being manufactured in India every year. Even e-commerce is rapidly growing in India and brings new products to consumers in smaller cities and the countryside. Times are changing fast, it now takes just 20 minutes to open a bank account in India, a quantum leap ahead for the Indian citizens.
After the keynote speech, Bernhard Steinrücke, Director General, IGCC, moderated a discussion on ‘Vibrant India – new perspectives for German Companies’.
Sunil Mathur, Vice President, IGCC and Managing Director and CEO, Siemens Limited, India, reported that Siemens India is among the Top 5 in the country-ranking of German multinational companies in India and has reported a 20 percent growth last year. Siemens is active in the development of infrastructure like power, distribution, smart grids and microgrids. The company is also actively supporting the Smart Cities programme and the public transport system in India.
Martin Wörlein, head of the India team at Rödl & Partner, gave an insight into the complex Indian tax system and recommended that all activities in India be planned keeping in mind the various tax implications. German companies having a wholly owned subsidiary in India should not forget the stringent transfer price regulations.
Prashant Mara, from BTG Legal, gave a quick overview of the different reforms in the legal sector. He spoke about the tremendous progress with the new Insolvency and Bankruptcy Code and new regulations on payment terms.
Ralf Scheller, TÜV Rheinland AG, spoke about the contribution of TÜV in India, in checking the quality of equipment for renewable energies and fulfilment of safety regulations.
A lively discussion followed, with all participants sharing insights on the opportunities and challenges for renewable energies in India. While investments are made in the production of electricity, the question of the storage of the energy has not been answered satisfactorily so far. The industry is heading towards rooftop solutions, for using the huge areas of their manufacturing units for solar power production. ‘Waste to Energy’ could be another interesting opportunity for India.
After this interesting discussion, Henriette Reker, the Lord Mayor of the city of Cologne, addressed the IGCC members. She was happy that the AGM took place for the first time ever, in Cologne. The city of Cologne started an India initiative in 2006 and has organized some delegation trips to India too. So far, 50 Indian companies have settled down in Cologne. For the last 10 years, an India Week has been organized annually, with business, cultural and art events. The Lord Mayor didn’t forget to mention that Mr. Steinrücke is the Economic Ambassador of Cologne in India!
In keeping with a good Indian tradition, Sunil Mathur, Vice President, IGCC and Managing Director and CEO, Siemens Limited, India, proposed the vote of thanks to all the speakers, the hosts - TÜV Rheinland, and the sponsors for their very important financial contribution. After all, it wouldn’t have been possible to organize the biggest India business event in Germany, without the constant support of the sponsors and the IGCC members.
