India defense
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India and the European Union appeared close to clinching the stalemated Bilateral Trade and Investment Agreement, with German Chancellor Angela Merkel concluding the multi-disciplinary bilateral consultations by saying the treaty had entered a dynamic stage of consultations and was within grasp.
Talking to reporters with Prime Minister Manmohan Singh, Merkel said, "We are now in a position where we can get there. We are not ready to sign yet but we thank India for paving the way for signing the agreement. We are in a dynamic stage of consultation."
The statement after the detailed inter-governmental consultations marked progress from the past when key ticklish issues stalled finalization of the treaty. Singh indicated as much when he said the two countries had agreed on the urgency of an early conclusion of "trade and investment agreement" that is "balanced" in nature. Sources indicated that political mandate to the two camps was clear and it was now for them to discuss the specifics.
The German demands of lowering duties on import of automobiles by India and raising of FDI cap in insurance sector are still to be sorted out. But, indications are a negotiated solution to European wishlist in return of recognizing India as "data secure country" and some Indian demands on services sector could be the way forward.
The scene now shifts to European commissioners' meeting with commerce minister Anand Sharma from April 15. Sharma expressed confidence, saying, "The offer India has put on the table is the most ambitious, including sectors which we have never included in FTA. We are discussing automobiles, all issues on agriculture have been settled."
The statements were interpreted as showing that liberalization of insurance sector may not be the deal breaker as has been flagged till now. Singh was upfront in underlining the uncertainty of Parliamentary approval, a must to raise foreign equity participation from 26% to 49% in insurance, while saying the Cabinet had cleared it. Europe has often cited liberalization of insurance sector as non-negotiable to FTA.
India and Germany, while inking six declarations and agreements to cooperate in the fields of higher education, promotion of German language in India and agriculture among others, signed to set up a high technology partnership group. Singh said, "We look forward to expand defence cooperation anchored in technology transfer, co-development and co-production in India."
Singh incentivized the German involvement with India by indicating that the country needed investment of $3 billion in the next five years to boost the infrastructure sector. The bilateral talks were hailed as a unique engagement with ministers sitting across the table to thrash out issues. Science and technology minister Jaipal reddy, HRD minister Pallam Raju, commerce minister Sharma, foreign minister Salman Khurshid and renewable energy minister Farooq Abdullah were part of negotiations led by the PM.
India, EU inch closer to trade and investment agreement - The Times of India
Talking to reporters with Prime Minister Manmohan Singh, Merkel said, "We are now in a position where we can get there. We are not ready to sign yet but we thank India for paving the way for signing the agreement. We are in a dynamic stage of consultation."
The statement after the detailed inter-governmental consultations marked progress from the past when key ticklish issues stalled finalization of the treaty. Singh indicated as much when he said the two countries had agreed on the urgency of an early conclusion of "trade and investment agreement" that is "balanced" in nature. Sources indicated that political mandate to the two camps was clear and it was now for them to discuss the specifics.
The German demands of lowering duties on import of automobiles by India and raising of FDI cap in insurance sector are still to be sorted out. But, indications are a negotiated solution to European wishlist in return of recognizing India as "data secure country" and some Indian demands on services sector could be the way forward.
The scene now shifts to European commissioners' meeting with commerce minister Anand Sharma from April 15. Sharma expressed confidence, saying, "The offer India has put on the table is the most ambitious, including sectors which we have never included in FTA. We are discussing automobiles, all issues on agriculture have been settled."
The statements were interpreted as showing that liberalization of insurance sector may not be the deal breaker as has been flagged till now. Singh was upfront in underlining the uncertainty of Parliamentary approval, a must to raise foreign equity participation from 26% to 49% in insurance, while saying the Cabinet had cleared it. Europe has often cited liberalization of insurance sector as non-negotiable to FTA.
India and Germany, while inking six declarations and agreements to cooperate in the fields of higher education, promotion of German language in India and agriculture among others, signed to set up a high technology partnership group. Singh said, "We look forward to expand defence cooperation anchored in technology transfer, co-development and co-production in India."
Singh incentivized the German involvement with India by indicating that the country needed investment of $3 billion in the next five years to boost the infrastructure sector. The bilateral talks were hailed as a unique engagement with ministers sitting across the table to thrash out issues. Science and technology minister Jaipal reddy, HRD minister Pallam Raju, commerce minister Sharma, foreign minister Salman Khurshid and renewable energy minister Farooq Abdullah were part of negotiations led by the PM.
India, EU inch closer to trade and investment agreement - The Times of India
