It is a privilege to attend the inauguration of the Hannover Fair. India is proud to partner this event once again, after 21 years. Our industry is delighted to show you the new face of our ancient country in this major world fair. We thank the organizers and the people of Hannover for their gracious hospitality and friendship.

The Indian and German people have cherished a close and warm friendship. There has been a constant flow of ideas, knowledge and commerce between our peoples. Our participation at this Fair marks a qualitatively new phase in our bilateral economic relationship.

India sees Germany as a leading scientific, technological and cultural power. We recall with gratitude the German role in the building of a new India. Your expertise helped us establish our first steel plants. German firms played—and still play—an important role in the technological modernization of India. Indeed, it is no exaggeration to say that in popular perception in India is that the “Made in Germany” logo is a synonym for the highest quality and cutting edge technology. We see great mutuality of benefit for us in building upon this history of partnership. A future of great possibilities awaits us.

India is at the cusp of a historic transformation. Never before has the mechanism of an open market, in an enabling environment of a free parliamentary democracy, been used to raise so many millions of people from the age old scourges of poverty, ignorance and chronic disease. Today, we have a new vision for India as an active participant in the increasingly integrated global economy. We are committed to an open, liberal economy; one that is in tune with the new realities of the global economic order. We seek to enhance our presence in the international trading system. India has benefited from German support in the EU system. Just as we see Germany as a natural partner in Europe, we hope Germany will increasingly come to view India as its natural partner in Asia.

As tariff barriers fall and an even more welcoming investment climate develops, India is more open and more hospitable. Ours is one of the most liberal policy frameworks for foreign investment. We have opened up most sectors of our economy to foreign investment. I would subscribe to what Madame Chancellor said recently, when she spoke of the importance of “small steps”. In the past fifteen years, a series of steps has brought India a substantial distance. We are determined to go much further.

At present, we are paying particular attention to infrastructure. We have announced plans to step up investment in transport, connectivity, power and energy, both in the rural and the urban sectors. Our highway plan, currently nearing completion, is one of the world’s largest. Our railway system, already one of the world’s largest, is being modernized with new technology. Ports and airports are witnessing renewed activity as the private sector and public-private partnerships in investment and operation are encouraged. These programmes will create significant opportunities for construction and engineering firms. On a rough estimate, over the next decade, our economy can absorb over 150 billion dollars of investment in the infrastructure sector alone! I urge German companies to engage in building these new infrastructure facilities.

A resurgence of the manufacturing sector is underway in India. Over the past two years, this sector has achieved growth rates of 9-10 per cent. We aim to raise this to 12 % in the near future. India is expected to emerge as a major manufacturing base in coming years. At the same time, the restructuring of Indian industry has led it to become a strong force for growth. In fact, several Indian firms have established a presence in Germany. Our firms are increasingly meeting global benchmarks of quality, cost and productivity.

India and Germany have great opportunities to work together. Some new areas of Indian strength, such as chemicals, pharmaceuticals, auto components and electronics, complement areas of German expertise. The possibility of new partnerships between the dynamic German SME sector and its Indian counterpart is another area of interest for us. The emerging knowledge sectors are a new area for cooperation between India and Germany. Our skills in design, R&D, and innovation benefit the IT, biotechnology, media and entertainment sectors, among others. In this context, we must build upon the tradition of cooperation in space, science and technology and nanotechnology between our two countries. It is now time to elevate this interaction to a new plane. It is time for German players to take advantage of the emerging knowledge regime.

To make our economic cooperation more robust, we need to address barriers to trade and investment. Some Indian companies have faced visa and work permit problems in Germany. Employment and taxation laws also pose problems, as do some environment and labor standards. While our companies have recast operating procedures, some requirements remain onerous.

Germany is one of the world’s foremost trading nations. The increased integration of India into the global trading system offers opportunities for both of us to work together bilaterally as well as in multilateral fora in a productive partnership to strengthen a rule-based, predictable international order. We look forward to working with Germany in the EU and at the WTO, among other things, to ensure the success of the Doha Round of trade negotiations.

India and Germany have been traditional friends with a long history of mutually beneficial cooperation. With the emergence of a new and vibrant India there are new opportunities for Germany to revitalize its involvement with India. I wish the people of Germany happiness and prosperity. No less important, in the present context, I also wish you every success in hosting and playing in the forthcoming World Cup!