indien.ahk.de...of the globe, the ‘Munich Security Conference’, nobody foresaw ... Yes, China is...

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Editorial

Indo-German Economy 1 | 2020

Corona first, Globalisation last, Global warming past!The year 2020 seemed to start like many new years in the past with the exception that the annual World Economic Forum in Davon celebrated 50 years and thus the self-proclaimed saviour of planet earth, Klaus Schwab, offered his think tank oasis in the Swiss mountains to two presumably totally opposite contenders US President Trump and environmentalist Greta Thunberg. Both performed as per the expectations. Trump glorified his American way of life and Greta blamed all the world leaders to jeopardise the youth’s future with their destructive lifestyle. Prof. Schwab used the opportunity to endorse Greta and demanded drastic measures before it is too late. This time the elephant in the room was not China. In hindsight, it could have been the rat in the room.

Just a month later the world looks totally different. Neither in Davos nor in the next brainstorming session of the risk predictors of the globe, the ‘Munich Security Conference’, nobody foresaw what would bring the world to a standstill just a few weeks later and it would not be a war or a natural catastrophe. The crown of unforecast Corona. And all the makers and shakers of recent world politics seem to have their advantage.

Disruption king Trump who within his first term as US President wanted to make America great and China small again and shut Iran? In spite of sanctions and special tariffs, the American trade deficit did not really change. But now with the movement in and out of China virtually at a standstill, the year 2020 will see totally different numbers. Whether the American consumer will like all the more expensive “not Made in China” products has to be seen.

China might be the winner. The regime was under tremendous pressure internally and externally with the democratization movement. The world was looking at Hong Kong and parts of China itself. Now China and Hong Kong are under quarantine. The Chinese Government uses the situation as a gift from God. Not only that they argue the virus came from the outside and that their political and administrative system is best equipped to handle it successfully, they even got the acknowledgement of WHO. With the help of life-essential mobile phones, they implemented the total control of their people. Even the annual National People’s Congress has been postponed without any objection so that the slightest criticism of the ruling regime has been curtailed. A book is said to be in print to glorify the outstanding handling of the situation by President Xi himself. And some experts speculate that it is all a revenge by the Chinese on the US and the rest of the world for challenging them. Now they show how dependent we are from them. They can easily manage their extended Chinese New Year break. But when the world stock market crashes and oil prices tumble all but China have a problem. When China has the flu the world gets pneumonia they say. Now China has pneumonia and the world is collapsing. ===And ‘Fridays for Future’ activist Greta Thunberg wants to stop flying and as a good example does not fly herself. She wants the adults to totally change their lifestyle from growth and consumption to environment protection and sustainability. Hundred-thousands of flights have been cancelled and many more to come. As per IATA a loss way beyond US$ 100 billion. And the air in China is much better already.

The panicky reaction by the whole world shows that angst is a strange adviser. Every year in Germany and Italy alone some 20,000 people are dying from normal influenza. So far in Germany, only a few elderly people have died from the Coronavirus. On the other hand last year in Germany 3,054

people died in traffic accidents, in China officially some 58,000 and in India 1,49,000. Going by the same standards one would have to forbid road traffic immediately. Much too dangerous.

All serious scientists keep saying there is no reason to panic and with just some basic behaviour like washing or sanitizing hands, not sneezing openly and watching one’s temperature, the spreading can be easily contained. With the Namaste in India, we actually have the ultimate non-transfer system. But like in the case of global warming, nobody listens to the experts. The real issue seems to be that our hospitals are not equipped to handle a sudden increase in emergency cases even if the numbers are small. With a few 1000 extra cases the system collapses. Still one has to ask how did we manage the influenza epidemic in the previous years. Why was there no collapse then?

But the crises should have some benefits as well. Finally, especially German companies realize that putting all their eggs in one basket can be a risky strategy. The whole system of supply chains and sourcing has to be looked at. And here India, actually could and should be the beneficiary. Yes, China is important but China alone is dangerous as we see now. India is the natural second choice. And India will benefit in two more ways. The huge trade surplus of China will vanish and with the oil price crashing another burden for the budget goes.

Suddenly everybody looks at the way we communicate and interact. Video conferencing will be much more common than in the past; flying around the globe and within the continents or even countries will be in question. Lufthansa wants to cut its flights by 50%! The way we are doing business will be reinvented. Not only supply chains but also marketing, distribution and sales will be different.

For Germany, as the world champion in trade fairs, the situation is a major challenge. Over centuries, the annual get together of people from all over the world to show the latest innovation, exchange views, interact and to do business where there is a personal feel and touch is irreplaceable. Now with the fear of a virus all this great tradition and German success is at stake. The US as the largest economy still does not have important trade fairs and whether a pop and start-up festival like South by Southwest happens or not, does not make a significant difference. But when ITB, the world’s largest tourism fair or Hannover Messe, the world’s largest industrial fair are cancelled or postponed we are talking not only of a billion Euro loss in turnover but a severe disruption in the way we are doing business.

Will we go from people-to-people life, to e-life, or people-to -machine life to ensure no virus spreads? Instead of globalisation, regionalisation or nationalisation? Digitalisation all over?

Our education and learning might change. All over the world schools and universities are closed. So home and distance learning is the need of the hour. Travelling as such is in question. Who will go on a cruise when one does not know if one gets an unplanned extension in quarantine? So will be staying at home, working at home, learning at home be the new normal? Time will tell. Never take anything for granted, think out of the box and never miss a good crisis.

Chancellor Angela Merkel said, “(The Coronavirus) is putting our solidarity, our common sense, and our openheartedness for one another to test. I hope we will pass this test.”

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Cooperation


India meets NRWOn 15th January 2020, the series of business events “India Meets NRW” was launched in Düsseldorf. This series is a project of the Consulate General of India in Frankfurt in cooperation with various partners in NRW including Indo-German Chamber of Commerce (IGCC), IHK Düsseldorf, CII, NRW Invest, and NRW International.

This series of events enables German companies present in India and those looking at investing in India to gain more knowledge on opportunities and business prospects in our country. Indian companies present in NRW will also be facilitated through the partners of this Series.

The keynote speaker was the Economic Minister of NRW, Prof. Dr. Andreas Pinkwart. NRW Invest organized a panel discussion with Indian Investors in NRW and German Investors in India; Representatives of the companies STEAG, Claas, Infosys, TCS and Albonair shared their experiences with the 100 guests of the event in Düsseldorf.

“India meets NRW”, the lighting of the lamp by the project partners: Mr Neugart (IHK Düsseldorf), Ms Schmitz (NRW International), Mr Matter (Indo-German Chamber of Commerce), Ms Wassner (NRW Invest), Ms Klerks (City of Düsseldorf), Ms Mohan (CII), Ms Parkar, Consul General of India in Frankfurt.

NRW Invest discussion with Indian and German InvestorsMs Parkar, Consul General of India in Frankfurt presents the book on “The Constitution of India” to Chief guest Prof. Dr. Andreas Pinkwart, Economic Minister of NRW

Moderator Ruby Jaspreet, Consul (Com) Participants at the event “India meets NRW”

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Cooperation


Setting up of a Fast-Track System for Indian Companies in Germany

A Joint Statement on Setting up a Fast-Track system for Indian Companies in Germany was signed in Berlin by Ambassador of India to Germany, Mrs. Mukta D. Tomar, and Parliamentary State Secretary, German Federal Ministry of Economic Affairs and Energy (BMWi), Mr. Christian Hirte. This was based on the decision taken by Prime Minister of India, Shri Narendra Modi, and Chancellor of Germany, Dr. Angela Merkel, during the 4th India-Germany Inter-Governmental Consultations in May 2017.

The Fast-Track system for Indian Companies in Germany would pave the way for identifying and solving issues faced by Indian companies and investors in their operations in Germany as well as serve as a platform for discussing any challenges being faced by Indian investors in the German market. The mechanism would operate along the lines of the Fast-Track system for German companies in India, which has been successfully operating in India since 2016.

The Indian Embassy in Germany, in close cooperation with the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, and relevant Ministries/agencies in India will represent the Indian side in this system. The Fast-Track system will be reviewed twice a year at the level of the State Secretary, Federal Ministry for Economic Affairs and Energy (BMWi), and the Ambassador of India in Germany. Both sides will also meet at the working level at shorter intervals, as and when required, to

review the progress achieved in addressing the issues faced by Indian companies in Germany. Indian investments in Germany have shown a substantial increase in the last few years. Besides trading, Indian companies have set up value chain activities in Germany, manufacturing goods and services locally as well as engaging in R&D and innovation activities. Indian corporate entities have invested in Germany, mainly through Mergers & Acquisitions. Indian companies are

Image source - Embassy of India, Berlin (Germany)

operating in Germany, mainly in the sectors of IT, automotive, pharma, biotech and manufacturing.

The presence of Indian software companies in the German market is growing and the major Indian software providers, namely HCL, TCS, Infosys, and WIPRO, have operations in Germany. Companies like Bharat Forge Limited, Mahindra & Mahindra, Tata Steel, Novelis, Ranbaxy, Samtel, Hexaware Technologies, Lupin Pharma, Amtek, Graphite India Limited, Hinduja Group, Piramal, Sona Group, Essar, Kirloskar, Dr. Reddy’s Laboratories, Biocon, Hindustan National Glass and others have either acquired German companies or started their own subsidiaries.

As per Press Release issued by Embassy of India, Berlin (Germany)

Fast-Track System contact for Indian companies

Mr. Rajesh GawandeFirst Secretary (Economic & Commerce)Embassy of IndiaTiergartenstrasse 1710785 BerlinE-mail: [email protected]

Image source - Embassy of India, Berlin (Germany)

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Cooperation


Joint Declaration of Intent to Promote the Recruitment of Skilled Workers from Non-EU Countries

To make sure Germany will continue to attract business in the future, well-trained skilled workers and professionals are of vital importance. Together with entrepreneurs, they lay the foundations for our economic growth and prosperity. Many companies, sectors and regions are already facing a shortage of academics and, particularly, of skilled workers with vocational qualifications. Irrespective of economic developments, demographic change will continue to aggravate this labour shortage. This will have an impact not only on companies but on society as a whole.

In December 2018, in order to tackle this problem, the Federal Government adopted a Skilled Labour Strategy that aims at unlocking the skills potential of Germany, Europe and non-EU countries alike. While harnessing the domestic potential remains the most important task, Germany will be increasingly dependent on the immigration of qualified professionals. Foreign employees already constitute a substantial part of the German workforce, making a major contribution to the country’s prosperity.

The Skilled Immigration Act, which will enter into force on 1st March 2020, creates a legal framework to facilitate the immigration of skilled workers from non-EU countries. In particular, workers with a vocational qualification will be given better access to the German labour market. Targeted access mechanisms, for instance on the basis of agreements between the Federal Employment Agency and non-EU countries, will be expanded.

In recent months, the Federal Government has already taken action together with the private sector to support the implementation of the Skilled Immigration Act, with further steps being necessary to harness its full potential.

Close cooperation with all stakeholders is required so that sufficient numbers of skilled workers come to Germany and are successfully integrated into the labour market and society. Together we shall tackle the challenges involved in this process. We are seeking to ensure that the resources required

to successfully attract foreign professionals are made available.

Good working conditions and fair wages are an essential prerequisite for the successful recruitment of skilled workers and for social acceptance. We firmly oppose racism and agitation against foreigners.

We will swiftly implement the following measures:

Raising the visibility of Germany as an attractive destination for skilled workersGermany is facing strong international competition for qualified professionals. This is why we need to improve the way we present our attractive working and living conditions in order to stimulate the interest of skilled workers from abroad. At the same time, our companies must be kept informed about the improved possibilities of employing foreign workers. For this purpose, the private sector and the Federal Government will jointly raise awareness, expand information services and offer more information events both in Germany and abroad. In addition, the FederalGovernment is elaborating its communication strategy under the label ‘Make it in Germany’.

Key points of contact for skilled workers and companiesThe Federal Government is turning its information portal ‘Make it in Germany’ into a one-stop-shop for interested professionals and companies. The portal is supposed to pool all the relevant information about immigration for the purpose of work. The hotline and job listings will remain in place but are to be further refined in cooperation with the private sector. Business associations will promote the advertising of vacancies for the purpose of recruiting foreign professionals. The aim is to increase the number of such job offers and publish them in the portal’s job listings in a central and tailored manner, which makes it easier for the central service provider, the Federal Employment Agency, to take specific action to attract skilled labour.

Furthermore, the private sector will support the recruitment of personnel abroad and provide chambers and associations both

in Germany and abroad with contacts for companies to offer needs-based counselling on immigration issues. Activities abroad will be performed in close coordination with the embassies, consulates and the Federal Employment Agency.

Accelerating visa and recognition proceduresEfficient administrative procedures and a straightforward immigration process that can be completed within a fairly short time frame play a crucial role with regard to attracting skilled labour. As far as efficiency gains are concerned, the new ‘Central Service Centre for the Recognition of Professional Qualifications’ at the Federal Employment Agency is as important as the recently introduced expedited procedure for qualified professionals that lays down short, specific deadlines for all authorities as well as clear rules defining the responsibilities of the various stakeholders.

The chambers, being the competent authorities for recognition procedures, are important partners. In addition, we are encouraging the Länder, in their respective areas of competence, to create efficient, needs-oriented administrative structures and to establish central foreigners’ registration offices.

Additional staff for the visa offices and the creation of a central administrative unit to support visa processing from within Germany will speed up the issuing of visas at the foreign missions and reduce current waiting times. The Federal Government is also seeking to accelerate the digitalisation of visa procedures in the form of digital applications and the online transmission of documents back to Germany. In coordination with the foreign missions, the bilateral chambers of commerce may help visa applicants assemble all the required documents.

Improving training and language acquisition servicesThe recognition of foreign professional qualifications is one of the preconditions for the immigration of skilled workers. Nationals of non-EU countries possessing only a ‘partially’ equivalent qualification

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Cooperation


are able to achieve recognition by taking an ‘adaptation course’. In view of the differences between vocational training programmes in non-EU countries and the German dual training system, a lot of cases may require additional training measures in order to ensure full equivalence. Putting this into practice can be quite a challenge.

Employers are helping tackle the issue by organising in-house training measures. In addition to the assistance services of the Federal Government, the private sector will expand the needs-based provision of training measures in firms and in specific educational facilities.

Moreover, the Federal Government is improving conditions for German language acquisition abroad, e.g. by increasing the capacities of Goethe Institutes in line with demand. The private sector assists suitable professionals with the costs of language training in their countries of origin. At home, many companies support their employees by granting them leave for the purpose of language acquisition or further training measures. The Federal Government’s Integrated Language Programme comprises a nationwide set of fine-tuned measures to promote German language skills.

Today, the Federal Government, chamber organisations and business initiatives are already helping to attract skilled labour abroad through bilateral vocational training cooperation projects with partner countries. By expanding this cooperation with interested partner countries, we want to create the conditions for professionals abroad to be able to obtain a qualification that is likely

to be successfully recognised in Germany.

The PASCH partner school initiative ‘Schools: Partners of the future’ will be involved in closer cooperation with the private sector: PASCH alumni will be approached more directly about career opportunities in Germany – these may take the form of studies, vocational or further training or occupational activities.

Taking new approaches to the recruitment of skilled labour from non-EU countriesA lot of qualified professionals from abroad will organise their immigration process themselves, making use of the new possibilities of the Skilled Immigration Act. Meanwhile, the Federal Government and the private sector are providing a further boost to the recruitment of skilled labour, with a focus on selected countries and occupations. For example, in cooperation with the Federal Employment Agency, they are conducting pilot projects to follow, test and optimise the recruitment process from the first contact to initial integration in Germany.

The Skilled Immigration Act places special emphasis on the agreements the Federal Employment Agency can negotiate with selected countries of origin. These will speed up the immigration and recognition process even further; SMEs and the crafts sector, in particular, will benefit from this new instrument of getting access to skilled labour. The Federal Employment Agency will swiftly begin to build up such partnerships with other countries and take charge of the necessary implementation of the agreements in practice. All essential partners at home and abroad will be involved, and the business sector will actively contribute to the process.

The bilateral chambers of commerce will help to attract skilled labour from abroad, for example by organising recruitment tours for SMEs that are funded by the Federal Government.

Measures to integrate foreign professionalsAttracting skilled labour is not the only important factor in securing Germany’s skills base. The integration of the new arrivals into the workplace and society is equally important.

This is why the integration process must be supported from the outset. We are helping professionals and their family members as they arrive and find their bearings in Germany. Companies are supposed to assist them in their search for accommodation, with visits to authorities, and by offering training measures.

Business associations will continue to promote the dialogue between companies on ways to successfully integrate foreign skilled workers.

The trade unions are also committed to ensuring successful integration and fair working conditions. They will encourage their members to support the new arrivals and to work towards a culture of openness, togetherness and non-discrimination in the workplace and in society at large. This will create an integration-friendly environment to the benefit of all. Foreign professionals are able to contact any of the Fair Integration advice centres. These agencies with a nationwide reach provide information and counselling on matters related to labour and welfare law.

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Cooperation


Strategy for the Targeted Recruitment of Skilled Workers from *Third Countries

In the face of demographic change, the digitisation and climate policy targets the German economy which is facing fundamental transformation processes. Success in managing these challenges depends to a decisive extent on how well Germany succeeds in securing its future skilled labour base. The implementation and adaptation of new technologies can only be successfully managed if there are enough skilled workers with the appropriate skills to manage the transformations in the companies. In addition, Germany needs sufficiently qualified specialists in the health sector. Lastly, the stability of our social security system is also dependent on good economic development and thus on a stable base of skilled workers.

The Federal Government has therefore set itself the task of supporting the retention of skilled workers in the German industry through forward-looking and coordinated measures. This is to be done in cooperation and with the participation of industry, which requires qualified specialists. In December 2018, the Federal Government, therefore, adopted a strategy for skilled workers, which aims to increase the ability of domestic, European and international potential. This is based on the conviction that this comprehensive three-pillar approach is the only way to safeguard the potential of skilled workers.

As a third pillar, the Federal Government is relying on increased recruitment of skilled workers from third countries. Despite the growth potential in the domestic skilled labour base, without further immigration demographic change would lead to a significant decline in the labour force potential. It can also be assumed that immigration from countries of the European Union (EU) will tend to decline. Many EU Member States that have recorded high rates of emigration to Germany so far are experiencing similar or even more serious demographic developments than Germany.

Strategic frameworkIn order to encourage the immigration

o f s k i l l e d w o r k e r s f r o m t h i r d countries, the Bundestag passed the Fachkräfteeinwanderungsgesetz (FEG) in June 2019, which has come into force on 1st March of 2020. The FEG creates the legal framework for securing skilled workers from third countries and in particular facilitates access to the labour market for skilled workers from third countries with qualified vocational training. But legal changes will not be enough. Accompanying measures with the business community are necessary to support the desired effect of the law in the best possible way. On 2nd October of 2018, the Federal Government, therefore, adopted key points on immigration from third countries. According to this, the FEG will be supplemented by accelerated recognition of foreign qualifications, more efficient and transparent administrative procedures, increased promotion of the acquisition of the German language, and a strategy for targeted recruitment of skilled workers and improved marketing with business. In this way, the Federal Government is creating the necessary framework conditions that will enable increased immigration of qualified skilled workers.

The Federal Government is working intensively to reduce the administrative barriers to skilled worker immigration. In concrete terms this means:- A clear demarcation and allocation of

workflows between the visa offices, foreigners authorities, the Federal Employment Agency (FEA) and other involved offices

- Further digitalisation of the visa procedure- Increased support for diplomatic missions

by the national authorities- The implementation of a central service

point for the recognition of professions- The expansion of the range of advisory

services for professional recognition

In addition, the Federal Government will campaign with the federal states for

harmonisation, streamlining and acceleration of the recognition processes. In combination with these structural improvements, the Federal Government’s strategy for the targeted recruitment of skilled workers from third countries will help to maintain the skilled labour base. In doing so, the Federal Government is focusing on the sustainability of the strategy so that it is implemented with the needs and cooperation of the third countries.

The aim of the strategy is to better attract, recruit and place professionals from third countries. However, the measures of the Federal Government can only be successful if they are elaborated and implemented in close cooperation with industry and accompanied by contributions from the industry itself. Ultimately, it is the companies themselves that need skilled workers, to integrate them into the labour market and take personal responsibility for this. Not only the successful integration management, language and qualification measures, but also the creation of a positive working environment will help to retain skilled workers and reduce future migration. The Federal Government, the business community and other key players meet regularly in order to maintain a close exchange with the business community, among others in the network named “Ausländische Fachkräftepotenziale erschließen” (Tapping into the potential of foreign skilled labour). The Federal Government intends to continue this constructive dialogue in the future. In addition, a summit on skilled worker immigration will take place in December 2019, at which a joint declaration of the Federal Government, the business community, the Confederation of German Trade Unions (DGB) and the FEA will be signed.

SummaryThe Federal Government’s strategy for the targeted recruitment of skilled workers from third countries makes an important contribution to securing skilled workers in the German industry. The target groups are primarily trained specialists (professionally qualified). However, it is also aimed at

*Third Countries – All countries not belonging to the European Economic Area (EEA)

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From our Partners‘ Desk


SMM 2020: The Leading International Maritime Trade Fair

you go to the GMEC conference, take the Green Route through the exhibition, or visit Hall A5 which is entirely dedicated to sustainable propulsion technologies – as the leading international maritime trade fair we highlight the industry’s key business drivers every two years, showcasing all the state-of-the-art solutions for a greener shipping sector.”

The leading international maritime trade fair takes place in Hamburg every two years. Roughly 50,000 visitors are expected to come to the famous port city. Covering more than 90,000 square metres of the exhibition floor, SMM reflects the entire value chain of the maritime industry. Decision-makers, experts and multipliers from all parts of the world will gather at the exhibition, making SMM the foremost innovation platform of the maritime sector. SMM in Hamburg is complemented by INMEX SMM India – South Asia’s largest maritime exhibition and conference which will again take place in Mumbai from 11th to 13th October 2021.

For further information, please contact Lea Miram in Mumbai ([email protected])

“Driving the maritime transition”: In times of the global climate debate and the digital transformation, SMM 2020 will once again be the focal point for decision-makers in the maritime industry. Topics that are currently high on the industry’s agenda are highlighted in the new issue of the SMM Maritime Industry Report: Shipping, shipbuilding and supplier companies are especially interested in alternative propulsion technologies and attractive niche markets.

The year 2020 marks a major turning point in international shipping: On January 1st, a lower global limit for the sulphur content of ship fuels entered into force. Instead of 3.5%, the allowable maximum will be 0.5%. For decades heavy fuel oil (HFO) was the fuel of choice for ship operators. Once the so-called Sulphur Cap enters into force, HFO will be restricted to ships equipped with expensive exhaust gas cleaning systems, also referred to as scrubbers. Another major milestone the International Maritime Organization (IMO) has set is that greenhouse gas (GHG) emissions from shipping should be cut in half by the year 2050. With its motto “SMM

2020 – Driving the Maritime Transition” the leading international maritime trade fair follows up, showing all of the industry’s new trends and innovations in the context of environmental protection and the digital transition.

With environment protection and the digital transformation as key goals of the global shipping community, the industry’s ecological footprint is under scrutiny, and enormous structural changes are taking place. From 8th to 11th September 2020, SMM, the leading international maritime trade fair, will showcase all that is technically possible to ensure the industry’s long-term success and ecological sustainability. Whether hardware or software, more than 2,200 exhibitors from all segments of the maritime business will present their future-looking technologies and services. More than 90,000 square metres of exhibition floor will be available to global leaders, start-ups and ‘hidden champions’. Claus Ulrich Selbach, Business Unit Director – Maritime and Technology Fairs & Exhibitions at HMC, points out that Green Shipping has been playing a major role in recent years: “Whether

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From our Partners‘ Desk


Empowering Women Through Education: amfori Builds Capacity across Indian Industry

India is one of the biggest economies in the world with strong year-on-year growth in the manufacturing industry. While India is making great economic strides, it is still lagging behind in the pressing issues of equality and women empowerment. The garment industry is one of India’s leading economic driving sector. The sector is responsible for 15% of India’s export earnings in 2018-19. At the heart of its impressive growth lie some of its biggest, and often invisible issues, such as caste and gender discrimination, verbal and physical abuse and sexual harassment.

In a study conducted by the Sisters for Change in 2016, 60% of women reported abuse and harassment in the workplace. Notably, women in the garment sector are vulnerable to abuse and harassment, which are left unreported in the workplace due to fear of social isolation and loss of employment.

Women in the industry are also insufficiently represented in supervisory roles despite forming the majority of the workforce. As a result, senior factory managers most often lack the knowledge or skills to provide human resources training to line supervisors, especially regarding harassment.

Over the years, this develops into a severe lack of knowledge and awareness on appropriate workplace behaviour and legislative requirements.

With these issues occurring in the socio-economic background, amfori in collaboration with the Confederation of Indian Industry (CII) (www.cii.in) conducted a ‘Workshop Series on Supply Chain Management in the Textiles Sector through Social Standards’ across five cities in India throughout 2019. The workshops were designed to create awareness as well as provide training, guidance and support surrounding the topics faced by women in the workplace. Over 200 professionals and across 147 factories were trained in the workshops. Data derived from participants reinforced that issues such as women representation in supervisory level need to be improved on.

Participants of the workshops found the knowledge shared useful to improve their processes and empower women in their organizations. Additionally, they found the workshop practical with real-life case studies, the discussions interactive and the resources useful.

“I am an ICC member, and I have read the laws and acts involved. But still, there were many aspects which were new to me. So, this training has helped me to understand the issues with a new perspective. The case studies discussed were very appropriate, and they will be very helpful when I handle real-life situations at my organisation” said a workshop participant.

Additionally, amfori has developed a guidance document for the Indian supply chain in order to understand and address sexual harassment and other women’s rights in the workplace. (www.amfori.org/sites/default/files/women-empowerment-brochure.pdf)

The positive responses received and the findings of the workshops will serve as the foundation for amfori to empower women in the workplace in India going forward through raising awareness and building capacity among companies as well as creating effective partnerships to advance gender equality.

About amfori (www.amfori.org)At amfori, we believe in a world where all trade delivers social, environmental and economic benefits for everyone. We call this Trade with Purpose. As the leading global business association for open and sustainable trade, we bring together over 2,400 retailers, importers, brands and national associations representing a combined turnover of more than 1.5 trillion euros. We offer our members a practical framework and world-class tools that enable them to manage the social and environmental performance of their supply chains and anticipate trends. We also advocate for progressive policy and collaborate with impactful stakeholders to achieve common aims.

For any queries contact: Natasha Majumdar, amfori Network Representative, [email protected]

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Special Report


The Machine Tool Industry

It further goes on to state that the decline of the automotive industry has majorly affected the growth of the machinery industry. However, the consequences of the trade war can’t be ruled out. A report by VDMA mentions that in the People’s Republic, the effects of the tariff war are becoming increasingly noticeable, which, in addition to weakening growth anyway, is leading to stagnating, and in some cases even declining sales in the notable industrial sectors.

USAThe USA is also one of the major industrial machinery exporters in the world. This market focuses on providing highly sophisticated technology for various manufacturing and service industries. Like China, the trade war has affected the US mechanical engineering industry too. A VDMA report states that investment momentum in the country has slowed significantly, and there are increasing signs that the American industry is also suffering from the trade dispute with China. On Germany’s exports to the USA, the report mentions that between January and June, exports to the United States rose by 7.8% to 9.96 billion euros thanks to an excellent start in the year. The USA accounts for 11.2% of total German machinery exports.

Global Machine Tool IndustryThe current mechanical engineering industry (and machine tools) is going through a tough phase. Leading industrial machinery exporters such as Germany, China and the USA are all experiencing a slowdown, as per MaschinenMarkt International.

GermanyIncoming orders and production in mechanical engineering have slowed down in Germany, which is the biggest exporter of machinery in this space. In fact, the German mechanical engineering industry expects production to fall by 2% in 2020, according to a report by the Mechanical Engineering Industry Association (VDMA). The major reasons behind this downfall are the ongoing US-China trade war and growing protectionism across the world.

Apart from this, there are other elements too, such as the global economic downturn, Brexit and structural change in key customer groups which have adversely affected the mechanical engineering industry in the European country. The report adds that this year, production fell in the first seven months by 0.9% compared with the previous year and is now negative. Dr. Ralph Wiechers, Chief Economist, VDMA reveals, “While the first quarter of 2019 showed a plus of 0.3%,

production in the second quarter declined by 2.9% compared to the previous year.”

In this scenario, investment is also suffering especially in the automotive sector.

ChinaThe world’s largest producer of machinery and occupying the second position after Germany in terms of exports, China is also witnessing a slowdown. The China Machinery Industry Federation reports that since the beginning of the year, the growth rate of the machinery industry has sharply risen from 2% in the first two months of the year to 6.3% in the first quarter and fell to 4.2% in the first half of the year. It is not only 4.2% points lower than the same period last year, but also lower than the national average for industry and manufacturing in the same period.

The federation adds that in the first half of the year, the machinery industry achieved an increase in operating results, i.e. 1.29% and a decrease of 8.58% in overall result over the previous year. The growth rate of the two indicators has fallen sharply compared to the previous year: the overall profit growth rate has changed from negative to negative and, for the first time in more than a decade, there has been negative growth.

Source: Image by Dmitrii Bardadim from Pixabay

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Special Report


Mechanical engineering has to assert itself in a difficult environment

have benefited from order backlogs. But the ceiling is getting thinner. Every third company, exactly 35%, now complains about a lack of orders,” said Welcker.

Praise and criticism for the Industrial Strategy 2030The industrial strategy for 2030 recently presented by Federal Economics Minister Peter Altmaier is welcomed in principle by the VDMA. “The Minister has heard criticism from industry and has taken it largely into account. He is committed to competition and a social market economy,” Welcker said. The minister’s commitment to open markets and technological neutrality is also a positive sign. “In particular, we agree with the commitment to open-technology mobility approaches, from the improvement of the internal combustion engine to Power-to-X and battery-electric drive systems,” said the VDMA President. But now the government must also deliver. With regards to tax policy, the mechanical engineering industry demands the complete abolition of the solidarity surcharge and the permanent introduction of declining depreciation possibilities on all assets. In addition, the government should limit the taxation of retained profits in partnerships to a maximum of 25%. “In addition, the posting of workers within Europe urgently needs to be significantly simplified again. The national implementation of the EU Posting of Workers Directive has created a bureaucracy monster that damages small and medium-sized businesses,” warned Welcker. The Economics Minister does not receive any approval from the VDMA for the plan to create a state participation facility - the Future Fund Germany. “The state is not the better entrepreneur, as we know from many years of experience,” emphasised the VDMA President. “We also reject the planned tightening of investment controls for takeovers from third countries through the introduction of the criterion ‘critical technologies’. Robots, for example, are not safety-relevant per se.”

A clear commitment to the federal debt limit and fiscal disciplineThe VDMA - together with other large industry associations and the majority in the Council of Economic Experts - is committed to adhering to the federal debt limit and the fiscal discipline. The investment weakness

in Germany is not due to insufficient government revenues. Balanced budgets do not prevent policymakers from breaking down existing barriers to investment, i.e. shortening planning procedures, expanding infrastructure or improving inefficient network regulation. “Anyone who now questions fiscal discipline or the federal debt limit is playing with fire because turning away from previous sound policies means new burdens for future generations,” warned Welcker. The Grand Coalition’s motto should rather be: “Release investment brakes instead of turning on the money tap”.

The state must not interfere any further in collective bargaining autonomyEqually important, in the view of the machine builders, is that the government should abandon its plans to intervene even more strongly in collective bargaining autonomy. “We firmly reject the Federal Labour Minister’s proposal to privilege companies bound by collective bargaining agreements,” emphasised the VDMA President. Even now, only 29% of mechanical engineering companies are bound by a sectoral collective agreement. In view of the weak economy, it would be much more helpful if rules for short-time work were adopted now, which already helped companies in the crisis of 2008/09. This is because the number of short-time workers in mechanical engineering has increased noticeably in recent months. While only 6,400 people were affected in May 2019, companies already reported 14,500 people on short-time work in September. “We, therefore, demand, for example, that short-time working be extended to 24 months. And already now possibilities should be created for the Federal Employment Agency to take over the social security contributions if the companies at the same time train and qualify their employees further. However, this must not lead to an expansion of co-determination and state influence”, Welcker explained.

“Our industry is not in a crisis, but many of our customers are uncertain about their prospects and thus are postponing or stopping their investments. We will therefore probably close 2019 with a 2% drop in production to around 218 billion euros.”

“Industry must not be seen only as a vicarious agent for other objectives. It is precisely now that the EU must consistently reduce the burdens on businesses and finally create the freedom we need to create innovative and competitive solutions”.

For the coming year, the VDMA economists continue to expect a further decline in production of 2% in real terms. A quick recovery is not in sight. Assuming more positive business climate data, the order books will only fill up again in the course of the year. Due to technical lead times, these orders will not lead to production growth before the second half of the year.

The prerequisite for all this is that especially the trade war between the USA and China does not intensify any further. “The economic easing that can currently be observed in Germany and on important foreign markets is not much more than an end to the downward process. It can initiate a slight recovery in the course of 2020 and hopefully, it will. However, it is too early to give the all-clear, because the global economic development is still burdened by a high degree of uncertainty,” said the VDMA President Carl Martin Welcker.

Good employment situation comes under pressureThe good employment situation in the German mechanical engineering sector could also come under pressure as a result. In September 2019, a total of 1.073 million people were employed in companies with more than 50 employees, up 0.6% on the previous year. This means that mechanical engineering remains the largest industrial employer in Germany and at the same time the most important employer of engineers. A record number of 200,000 engineers employed in mechanical engineering was recently reached. “But we must assume that we have seen the highest level of employment. While companies will do everything they can to retain their skilled workers even in difficult times, it is questionable whether everyone will succeed. To date, numerous companies

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Companies engaged in the engineering sector are virtually on a roll. Capacity creation in sectors l ike infrastructure, power, mining, oil & gas, refinery, steel, automotive, and consumer durables has been driving demand in the engineering sector. Separately, the approval of a significant number of special economic zones (SEZs) across the country and the development of the Delhi Mumbai Industrial Corridor (DMIC) across seven states are expected to bolster the engineering sector further.

Government has proposed granting of loans up to Rs 1 crore (US$ 0.15 million) for MSMEs within 59 minutes through a committed online portal. Under the Interest Subvention Scheme for MSMEs, Rs 350 crore (US$ 52.50 million) has been allocated for FY 2019-20.

With 100% foreign direct investment (FDI) allowed through the automatic route and initiatives like Make in India, major international players have entered the Indian engineering sector due to significant growth opportunities available. Miscellaneous mechanical and engineering industries have received FDI inflows worth US$ 3.59 billion during April 2000-June 2019.

Investments in the Engineering SectorThe engineering sector in India attracts immense interest from foreign players as it enjoys a comparative advantage in terms of manufacturing costs, technology and innovation. The above, coupled with favourable regulatory policies and growth in the manufacturing sector has enabled several foreign players to invest in India. The Foreign Direct Investment (FDI) inflows into India’s miscellaneous mechanical and engineering industries during April 2000 to June 2019 stood at around US$ 3.59 billion, as per data released by the Department for Promotion of Industry and Internal Trade (DPIIT).

In the recent past, there have been many major investments and developments in the Indian engineering and design sector:• In June 2019, Joysons Safety Systems

(JSS) announced the merger of its two joint ventures in India into a tri-party joint venture called Joyson Anand Abhishek Safety Systems Private Limited (JAASS).

“The Indian machine tool industry is globally ranked 12th in production and 8th in consumption as per a Gardner Research Survey. The current market size of machine tools in India for 2017–18 was estimated to be around Rs 12,800 crore, of which the domestic production accounts for about 47% of the total consumption. The industry registered an impressive growth rate of 23% during 2016–17.” - P Ramadas, Past President, IMTMA

This reflects the consequences of weaker domestic growth in the People’s Republic and the trade war with the United States.By contrast, exports to the USA were still able to benefit from the impetus of the corporate tax reform there, although the VDMA economists are expecting less momentum in US growth in 2020. The Brexit decision, which has been repeatedly postponed, is now also having a clear impact; exports to the United Kingdom fell by 4.8% to just under 5.7 billion euros.

This puts the country in sixth place in the rankings. In the first nine months, mechanical engineering companies from Germany exported goods worth 64.6 billion euros to the neighbouring countries of the European Union as a whole - an increase of 1.1% on the previous year.

Indian Machine Tool IndustryIndia has emerged as the fastest-growing major economy in the world and is expected to be one of the top three economic powers of the world over the next 10-15 years, backed by its strong democracy and partnerships. Indian Economy is expected to grow 7.1% in 2019-20, and gross domestic product (GDP) is expected to reach US$ 6 trillion by FY 2027.

India is an attractive hub for foreign investments in the manufacturing sector. India’s Foreign Direct Investment (FDI) equity inflows reached US$ 409.15 billion between April 2000 and December 2018. Several companies have set up or are looking to establish their manufacturing bases in the country.

The manufacturing sector of India has the potential to reach US$ 1 trillion by 2025 and India is expected to rank amongst the top three growth economies and manufacturing destination of the world by the year 2020. The implementation of the Goods and Services Tax (GST) will make India a common market with a GDP of US$ 2.5 trillion along with a population of 1.32 billion people, which will be a big draw for investors.

Machine tool sector is a basic capital goods industry. It is a sub-sector of the engineering industry included under the category heavy engineering units. Machine tool segment produces mother machines, therefore, plays

a vital role in the technological upgradation, quality control and cost in the engineering & manufacturing sector.

The Indian engineering sector is divided into two major segments - heavy engineering and light engineering. The turnover of the capital goods industry in India is estimated at US$ 70 billion in 2017 and is expected to grow to Rs 8,04,923.13 crore (US$ 115.17 billion) by 2025. Likewise, electrical equipment production is expected to reach Rs 6,98,900 crore (US$ 100 billion) by FY 2021-22 from Rs 39.06 crore (US$ 5.58 million) in 2017-18. The electrical equipment industry grew 13.7% year-on-year during April 2018-January 2019. Overall growth index for the electrical equipment industry for 2018-19 stood at 11.2%, as per the Indian Brand Equity Foundation (IBEF).

Comparative advantage vis-à-vis peers in terms of manufacturing costs, market knowledge, technology and creativity has been a driving force for engineering exports from India. In FY19, India’s engineering export have crossed Rs 5,80,087 crore (US$ 83 billion). Engineering exports grew 6.32% year-on-year to Rs 5,66,248.78 crore (US$ 81.02 billion) in FY19. In FY20 (April-September 2019), India’s engineering export has crossed US$ 38.74 billion.

As per Piyush Goyal, Minister for Commerce and Industry & Railways, the government will make all efforts to ensure that the exports of engineering goods reach US$ 200 billion by 2030. Government has also announced to invest Rs 10,000,000 crore (US$ 1.5 trillion) in infrastructure over the next five years.

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Machine Tools Fact and Figures- This segment churns out basic machinery

for all major industries and determines competitiveness in other sectors such as automobiles, heavy electrical and defence

- Nearly 200 machine tool manufacturers are operational in the organised sector along with 400 small-scale units

- Production of machine tools grew 25.7% year-on-year to Rs 7,293 crore (US$ 1.13 billion) in 2017-18, while exports reached Rs 355 crore (US$ 55.08 million). Production is forecasted to increase to Rs 9,000 crore (US$ 1.40 billion) in 2018-19.

Robust Growth In India’s Engineering Exports Over The Years• Engineering exports include transport

equipment, capital goods, other machiner y/equipment and light engineering products such as castings, forgings and fasteners.

• During FY08–FY19, engineering exports from India registered growth at a CAGR of 8.30%

• India’s engineering exports reached an all-time high in FY19, surpassing the US$ 80 billion mark. Engineering exports grew 6.32% year-on-year to US$ 81.02 billion in FY19.

• Engineering exports reached US$ 38.74 billion in FY20 (up to September 2019).

• Exports of engineering goods are expected to reach US$ 200 billion by 2030.

Key Categories Of Engineering Exports• Engineering exports of India can be

divided into eight major categories.• Out of these eight categories, Iron and

Steel and Products of Iron and Steel forms a substantial share (20.97%) of the total engineering exports, as of FY20 (up to September 2019)

• Automobiles (20.27%) and Industrial Machinery (17.49%) also contribute a major share of total exports.

Source: Indian Brand Equity (IBEF)

Start-ups

47Indo-German Economy 1 | 2020

The German Indian Startup Exchange Program (GINSEP) is a non-monetary platform initiated by the German Startups Association and supported by the German Federal Ministry for Economic Affairs and Energy (BMWi) to strengthen and foster the German-Indian economic relations in the field of startups. The main aim of the GINSEP is to promote an exchange between India and Germany’s startup ecosystems. Within the GINSEP, the German Startups Association acts as a neutral intermediary channelling the information flow between the Indian and the German startup ecosystem supporting both German and Indian Startup founders to understand and access both country’s ecosystems.

This two-and-a-half-day event on 4th, 5th and 6th December 2019, hosted by the Centre for Social Innovation and Entrepreneurship (CSIE) at IIT Madras with its sister university RWTH Aachen was jointly organised by DWIH - The German Centre for Research and Innovation (DWIH) New Delhi and GINSEP. The key objective for GINSEP is to carry forward its mission of driving startup exchange between India and Germany as well as broaden its footprint by supporting innovation and entrepreneurship also at the university level.

The event allowed one to meet early-stage start-ups in the sustainability and social impact sector. The interesting part of the event was to connect operating Indian start-ups with ideation stage German innovations which could further collaborate on sharing technology. The role of GINSEP was to create bridges also from an academic perspective achieved through a presentation and an interactive panel discussion with the audience represented by Amrita Gandikota – India Representative – GINSEP. The eventconcluded with a dinner reception at the residence of the German Consul General in Chennai – Karin Stoll.

Ms. Stoll presided over the session along with Prof. Nagarajan – Head of CSIE. Other key people present were Mr. Gopalan, Regional Director IGCC Chennai, Aadishree Jamkhedkar – DWIH New Delhi, James

Screening. AquaConnect (Agri-tech), Fib-Sol (Agri-tech), Solinas, Pi-Beam who were also incubated in the IIT Research Park and presented themselves at the session.

Rajanayagam, CSIE and Dr. Stefan Diederich, RWTH Aachen. Some of the German innovations from RWTH Aachen were Sonnenwagen, Paduka, Pacific Garbage

GINSEP – IITM – RWTH Student Entrepreneurship Summit 2019

GINSEP - RWTH Aachen and DWIH Session at IIT Madras

Startups from Aachen and IIT Madras along with the speakers

The delegation along with Karin Stoll, German Consul General in Chennai at her residence

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German Delegation Visits New Delhi On Renewable Energy And Energy Efficiency

The Indo-German Chamber of Commerce (IGCC) organised a business delegation visit to New Delhi, from October 8th-12th 2018, with a focus on Renewable Energy Technologies for industrial applications. This was supported by the German Federal Ministry for Economic Affairs & Energy (BMWi) under the Energy Solutions – made in Germany Initiative and by BADEN-WÜRTTEMBERG INTERNATIONAL GmbH in Stuttgart, which was the knowledge and promotion partner for the trip in Germany.

Participating companies from Germany were:Bioenergy Concept GmbH - Offers conceptualisation, planning and development of biogas projectsINPUT Engineering GmbH - An environmental infrastructure engineering company, which engages in the development, planning and realisation of infrastructure projects like biogas plants, as well as operations and managementPaulmichl GmbH - Supplier for high-quality components and have an extensive range of pipe, pump and storage technology for feedstock for biogas plantsERK© Eckrohrkessel GmbH - Engineering and design services for boilers, combustion systems, heat exchangers used in the process and power plants Schletter Solar GmbH- Leading manufacturers of solar mounting systems

The objective of the visit was to understand the developments in the Indian market in the renewable energy sector, also the requirements specific to the Indian context and explore business opportunities.

During the 4-day visit, the IGCC organised the delegation meetings with government authorities, various industry associations as well as potential business partners. Especially the companies in the biogas sector received an enthusiastic response. This was attributed to the recent developments in the market whereby biogas and bio-CNG production on a commercial scale has government support mechanisms in terms of capital subsidy as

well as off-take channels and tariff via the oil marketing companies under the SATAT Scheme.

Sustainable Alternative Towards Affordable Transportation (SATAT) is an innovative initiative by the Ministry of Petroleum, Natural Gas and Oil (MoPNG) with PSU Oil Marketing Companies (OMCs,i.e. IOC, BPCL and HPCL) inviting Expression of Interest (EoI) from potential entrepreneurs to set up Compressed Bio-Gas (CBG) production plants and make CBG available in the market for use in automotive fuels. This significant move has the potential to boost the availability of more affordable transport fuels, better use of agricultural residue, cattle dung and municipal solid waste, as well as to provide an additional revenue source to farmers.

One of the highlights of the delegation visit was also the presentation event held on October 15th, 2018, allowed participating German companies to showcase technologies. Alexander Stedtfeld, Economic Counsellor, Embassy of the Federal Republic of Germany inaugurated the event. Julian Balkowski of the German Asia-Pacific Business Association (OAV), then presented an overview of the German Energy Solutions Initiative, which helps to promote renewable energy and energy efficiency technologies from Germany.

Delegation visit to the Government of India – Ministry of New and Renewable Energy

Delegates with Alexander Stedtfeld, Economic Counsellor, Embassy of the Federal Republic of Germany (First Row standing – 2nd from left)

Chamber's News

Several expert speakers spoke in-depth, about market development and scope of applications, as well as the business potential for energy efficiency and biogas technologies in India and Germany. Stefan M. Buettner, University of Stuttgart and Vivek Utpal, Energy Efficiency Services Limited (EESL), addressed the topic of energy efficiency in the industry. Mr. Maussner of the Bavarian Center for Applied Energy Research e.V. spoke about efficient use of renewable energy technologies for industrial applications.

Jaideep Malaviya of the Solar Thermal Federation of India (STFI) presented the deployment of solar heat for industrial processes (SHIP) and enumerated advantages for industries where the demand for heat energy (in temperature ranges from 90-3000C) is high and where presently fossil fuels are used. This technology is currently being supported and adopted in the dairy industry.

The other topic addressed in the event was Biogas market in India. The Indian Biogas

Association, represented by Gaurav Kedia, presented the overall market development information. Additionally, Bijay Kumar Indian Oil Corporation Ltd. (IOCL) shared an overview of the SATAT scheme, which was of great relevance for the audience. Lastly, we also had an experience sharing/case study presentation by Dr. A.V. Mohan Rao and Mohit Gupta from Spectrum Renewable Energy (SREL) which one of the first companies in India to have bio-CNG / CBG = compressed biogas plants.

The event was well attended with around 70 participants mainly from the renewable energy segment, especially from biogas as well as from energy management, various associations and agencies active in the energy space. This event served as a unique platform for thought-provoking exchange of ideas and business discussions between the participants, both the Indian and German and provided a good networking opportunity.

For additional details, please contact Dipti Kanitkar on [email protected]

An interactive Q and A session in progress

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German Environmental Technologies Delegation Visits Delhi and Kolkata

On the evening of 10th November 2019, participants of the upcoming delegation of German businesses in the field of Environmental Technologies were warmly welcomed by IGCC staff namely Sumati Sud, Director – Inbound & Outbound Services, Events & Delegations; Sanchita Bagga, Senior Manager – Advertisements, Event & Delegations and Franziska Röttger, Executive, IGCC Düsseldorf.

In order to explore the subject of air pollution in India and the business opportunities for German companies in the field of air and water purification, the delegation travelled to Delhi and Kolkata from the 11th-15th November to two major Indian cities which are affected by substantial air pollution.

The focus of the delegation, headed by Anna Lechermann, Federal Ministry for Economic Affairs and Energy, was on air pollution control and air purification systems. However, the delegation wasn’t limited to air purification experts alone

but also included businesses from the fields of wastewater purification, as well as engineering consultancy services and a manufacturer of crematories.

Up until now, none of the Germans had seen the small, egg-shaped air pollution monitoring devices that are used in India. However, just a glimpse out of the car window during the ride from the airport to the hotel was enough to make everyone understand that the air in Delhi was substandard and something needed to be done about it.

In both the cities, colleagues from the respective regional offices did an excellent job of ensuring a smooth and successful programme for the delegates. The week was filled with B2Bs, networking, interesting talks, company visits, factory tours and even a little bit of sightseeing on the last day in Kolkata.

The first highlight of the delegation was a meeting with Nidhi Khare, Joint Secretary of the Ministry of Environment, Forest and

Climate Change (MoEFCC) in Delhi, which was highly appreciated especially by the Indian delegates. In Kolkata, after a busy day of B2B sessions and a very interesting meeting with the West Bengal Pollution Control Board (WBPCB), the delegates were invited for an evening reception in the German Consulate in Kolkata where one could enjoy traditional Bengali food and have interesting conversations together with the German Consul General Dr. Michael Feiner.

However, the trip wasn’t just limited to meetings and B2Bs; the delegates also got to see rare insights into the realities of the production and manufacturing process of two big Indian companies during a visit to Haldia - an industrial hub about 100 km south of Kolkata - where the delegation was taken on a guided tour of the factories of Haldia Petrochemicals Ltd and Exide Industries Ltd.

The final highlight of the trip was a meeting with the company Harbauer India Pvt Ltd. As the name indicates, Harbauer India is a subsidiary of the German company Harbauer Umwelttechnik. Since its inception in 2003, Harbauer India has grown into a small but successful Indian company. The team of Harbauer shared several interesting insights of their journey from the foundation as a small subsidiary to becoming a successfully operating Indian company.

The delegation trip ended on a positive note with interesting insights and examples of the possible journey and success that could very well become a reality for German companies who venture into the Indian market.

Factory visit at Haldia Petrochemicals Ltd, Haldia, Kolkata

Consul General Dr. Feiner, Anna Lechermann – BMWi, Nari Kalwani - Chairman IGCC Eastern Region, Sabina Pandey - Regional Director Kolkata, Franziska Röttger - IGCC Düsseldorf

Focused discussion during B2Bs between Mr Kreutzer from IFZW and a prospective business partner

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German Chamber Representatives Visit IndiaIn December 2019, several representatives from various German Chambers of Industry and Commerce visited India to deepen their understanding of the business environment, various markets and culture in the country.

Peter Deubet, Deputy Director General of the Indo-German Chamber of Commerce, welcomed the delegation to India and shared background information on the Indian business culture. In 2008, the Indo-German Chamber founded the India Desk

Network. A network of 16 German Chambers of Industry and Commerce and the Indo-German Chamber of Commerce to improve the support of German and Indian companies and to strengthen the collaboration between IHKs and the AHKs.

During their trip, the group visited Mumbai, Pune and Bangalore to visit several companies like Khaitan & Co, Schmersal, T-Systems, EFD Induction, TÜV Rheinland and Siemens Healthineers.

The colleagues were also very interested to see the Start-Up Incubator Zone, the JNPT Port in Mumbai and NASSCOM in Bangalore as part of their program.

The members of the delegation also had the chance to get deeper insights in the Indian market in discussions with the representatives of member companies of IGCC during several networking events and get profound information on “How to do business in India” by the colleagues of IGCC.

The impressive TÜV Rheinland sound room for “Acoustics Testing and Measurement”

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Kion Opens India’s Largest Material Handling Equipment Facility In Pune

Supporting the Make in India drive

Pune, November 28, 2019 - KION India Private Limited, a wholly-owned subsidiary of KION Group AG, has officially inaugurated its Factory 2.0, a new production site, which is India’s largest material handling equipment manufacturing facility. The new factory is located 27 km from Pune central at Koregaon Bhima. KION India’s previous manufacturing site operated from Chandan Nagar in Pune.

“KION Group continues to invest in India, looking at the growth opportunity available here. We have seen the Indian market is growing very rapidly and the demand for high-performance products is increasing as well, which is the domain of KION Group,” states CP Quek, Chief Asia Pacific Officer and a member of KION’s Executive Board attending the launch ceremonies.

With an investment of more than Rs. 125 Crores (>EUR 15 Million) in real estate and equipment, the new state-of-the-art facility is spread across an area of 25 acres with an annual production capacity of 10,000 units in Phase 1. The factory is integrated with three assembly lines, machine shop, paint shop, parts warehouse and R&D all under one roof. The factory manufactures diesel and electric forklifts as well as warehousing equipment such as battery-operated pallet trucks, reach trucks and electric stackers. The manufacturing site is also home to a research & design engineering centre, which focuses on understanding the ever-changing

requirements and trends of the Indian market and develop products to match them. With this facility in place, KION Group has made a total investment in India of nearly Rs. 350 Crores.

“This new factory represents the next step in the material handling equipment industry by India’s market leader, and we are confident that KION India will continue to drive growth in the domain through technology transfer and indigenisation. The factory represents our long-term commitment to the market here in India, its cu0stomers, employees, vendors and our channel partners,” explains Sunil K Gupta, the President of KION India Private Limited.

The entire production site is home to more than 400 employees. KION India also deploys more than 425 employees in the sales and service areas overseeing the needs of its customers. KION India is a multi-brand entity of the Group, handling fellow brands such as Linde, OM, Baoli, OM Voltas and Dematic. The new factory is a 700 KVA Solar Power facility and also includes water conservation and waste management processes which are aligned with KION Group’s sustainability initiatives. KION India looks forward to localising high-performance products, many of which are new to the Indian market and it is also on track to provide the best in terms of productivity, technology, quality and after-sales support.

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IGCC Organises Advanced Machining Technique Workshop By Oemeta

The Chennai office of Indo-German Chamber of Commerce organised a technical workshop on the advanced machining techniques using the coolants and lubricants, painstakingly developed over the last more than 100 years by the house of Oemeta Chemische Werke GmbH, UetersenGermany.

The outstanding quality of Oemeta’s product range is a result of consistent research and development work by the Oemeta team of experts in Germany in close coordination with the machining industry. Oemeta has

lubricants. Minimal wastage and therefore, most economical production processes were yet another significant feature of the Oemeta range of products. Close to 40 Heads of machining departments from a large number OEMs in the automotive and machine-building industries actively participated in the workshop. Oemeta was highly impressed with the keen interest evinced by the highly informed audience and thanked the Chamber for the professional organisation of the event.

been in India for the last over a decade with their Indian headquarters located in Pune. Already they have been hugely successful in tapping the niche Indian market for their product range.

Ulf Meyen, Group-Head and Managing Director OEMETA India, Pune, Stefan Joksch, Group Director (Technical) and Member of the Board, assisted by Abhimanyu Barthwal, Country Sales Manager India, made a highly interesting presentation on how perfect machining objectives can be achieved with the use of Oemeta coolants and

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Alliance For Dual VET Workshop In Pune Emphasizes The Awareness And Promotion Of Dual Vocational Education

And Training Amongst The Youth In IndiaOn 12th December 2019, the Alliance for Dual VET arranged a workshop with representatives from the industry, government, education sector and media at the Royal Orchid Central Hotel in Pune. The event, which was conducted in association with the Alliance members of Indo-German Chamber of Commerce and Bharat Forge, strived to provide a platform for the various stakeholders in Vocational Education and Training (VET). “Our goal is to create awareness about benefits of dual VET model, exchanging best practices, collaborating with Industrial Training Institutes (ITI’s) and other training agencies in the in the industry sector”, Asha Lele Das, Director of the Alliance for Dual VET set the frame in her opening address.

The Alliance for Dual VET is a skill development initiative established by the German Mission in India and driven by major industry players. Working towards the goal of promoting the implementation of dual learning in vocational training, the Alliance had recently launched a series of workshops to bring together relevant stakeholders for applied vocational learning in two learning venues: The vocational school and the industry.

The advantage of dual learning, i.e. learning

at the two learning venues school and companies, are clearly visible when looking at the German dual model: By attending a vocational school, apprentices obtain comprehensive theory knowledge, providing a basis for them to take up a range of jobs in various companies. In combination with training in a company, however, they learn to apply their knowledge to the company and job-specific processes, thus increasing their employability. Against this backdrop, dual skilling is considered an important pillar for overcoming the severe skill shortage faced by India’s industry. However, though the concept of dual vocational training is simple, implementing dual training programs is a complex undertaking that requires a high level of activity coordination and process streamlining to produce the desired training outcome.

To support companies in developing successful dual training initiatives or increasing the quality and return on investment of existing programs, the IGCC is offering advisory services through its service brand DUALpro. “Our mission through DUALpro is to establish dual training based on defined quality standards and act as a co-ordinator and networker between companies, state and stakeholders in the German dual

education sector. With dual education, we can help develop a skill-based approach in education,” said Philip Bauer, Senior Manager for Vocational Education & Training.

At the same time, India’s skilling challenge does not only comprise of the structure of VET. One important point identified in the workshop was the lack of desirability of vocational careers. As Major Sonali Kadam (retd), Director of Skills Development and Vocational Education at Symbiosis Open Education Society, Pune, remarked: “Parents want to get only traditional degrees and do not give importance to skills-based learning. They only want that degree certificate. There is a need to bring change in the traditional mindset. The concept of vocational and skill-based education is not being understood properly by the people.” In order to change this, advocacy of vocational training and the opportunities it provides is required, with media playing an important role in it. Against this backdrop, Hindustan Times Resident Editor Abhay Vaidya explained how to correctly use media for encouraging people to be informed about vocational education.

The session was concluded in an open question-and-answer session between the audience and keynote speakers.

For more information on Vocational Training and on-job learning please connect with Isabell Jenninger +91-20-41047 114 [email protected] or Philip Bauer +91-20-41047 108 [email protected]

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IGCC Kolkata Organises “High 5 Football Cup 2019”Indo-German Chamber of Commerce (IGCC) Kolkata organised their second edition of football tournament – HIGH 5 FOOTBALL CUP, in cooperation with the German Consulate Kolkata and German Football Academy (GFA). The tournament was held on Saturday, 14th December 2019 at the Salt Lake Stadium practice grounds from 8.00 am to 6.00 pm. 16 teams from various corporate houses located in Kolkata took part in the tournament.

Chief Guests were Dr. Michael Feiner, Consul General, Federal Republic of Germany, Hubert Reilard, Council Member, IGCC South-Western Region and Nari Kalwani, Vice President IGCC, Eastern Region and Bernhard Steinrücke, Director General, IGCC.

All the teams played with incredible zeal and enthusiasm. They were no less than professionals on the field. The final match was played between Hong Kong and Shanghai Banking Corporation (HSBC)

Dr. Michael Feiner, Consul General, Federal Republic of Germany with HSBC - the winners of IGCC Kolkata High 5 Football Cup’19

Bernhard Steinrücke, Director General, IGCC with HSBC - the winners of IGCC Kolkata High 5 Football Cup’19

and Haldia Petrochemicals Ltd. It was a nerve-racking match! Haldia Petrochemicals took the lead with a goal in the first half, which was equalled by HSBC. In the end, HSBC won the Football Cup by one goal, with Haldia finishing as the Runner-up. The Prize distribution ceremony was followed by high tea for the sponsors, organisers,

coordinators and teams.

We thank all our sponsors for their participation: Asian Leather Pvt. Ltd., Gapcon Engineering Pvt. Ltd., Gargi Memorial Institute of Technology, Patton International Ltd., Tide Water Oil Co. India Ltd. and Wacker Metroark Chemicals Pvt. Ltd.

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IGCC Corporate Football Tournament 2019On the 9th of November 2019, the Indo-German Chamber in Chennai organised the IGCC Corporate Football Tournament 2019 in association and close cooperation with the Consulate General of the Federal Republic of Germany in Chennai and the German Football Academy.

With the perceptible change in the recent times among India’s millennials with regard to physical fitness and sports; a trend that cannot be lost sight of is their enthusiasm to pursue a wide variety of indoor and outdoor games, with cricket of course continuing to occupy a preeminent position.

One of the active sports that has caught the imagination of today’s Indian youth is Football. The youth have graduated from merely watching games of international leagues on the television to experimenting with playing the game on the grounds.

In India, football clubs have mushroomed in different parts of the country, where promising talents are identified. European football federations and sports clubs have warmly welcomed this.

Even the joint declaration by the Indian and German governments at the end of the visit of

Dr. Angela Merkel, Chancellor of Germany on 1st November 2019 made a specific mention of the intention of both countries working together to develop football in India.

The event was supported and patronised by 9 reputed German companies – such as Schwing Stetter, Bosch-Siemens Household Appliances, Witzenmann, Carlisle Trading and Manufacturing, Heidenhain Optics & Electronics, Siemens Gamesa and Eppendorf.

In all 13 teams including teams from the Hospitality Partner teams competed on a league basis.

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SustainMarkets


With the establishment of SustainMarkets, 2019 marked an important year for IGCC. While sustainability has always been an important element of the Chamber’s portfolio, throughout last year steps were made towards systematic support for its member companies in strengthening their sustainable footprint and increasing their positive environmental and social impact. In this endeavour, IGCC is strongly committed to the Sustainable Development Goals and works in close cooperation with partners like the German development agency GIZ, amfori, German and Indian foundations and civil society organisations for the benefit of its member companies.

Within the framework of IGCC’s Annual General Meeting (AGM) on 2nd November in Delhi, the SustainAwards were given to companies displaying exemplary sustainable business conduct. In 2019, the awards went to Mahindra World City Chennai, R. STAHL, and BASF India. All three companies have made significant strides in their sustainable strategies through efforts in five areas of internal and external sustainability.

Also, during the AGM in 2019, IGCC SustainMarkets presented a new publication. The booklet “Corporate Social Responsibility: 25 leading German companies in India” was prepared in cooperation with the

SustainMarkets Increases Activities in 2020As IGCC entered a new decade this year, SustainMarkets is committed towards further intensifying its efforts to support its members and expand their sustainable footprint to enhance their corporate profile. The members will continue to benefit from the exposure in the network and the knowledge within the Indo-German Business & Sustainability Community. On the field of environmental aspects, training, conferences and roundtables will be offered on topics around climate change, energy efficiency and water management. With regard to linking economy and society, SustainMarkets will extend its services toward improving working conditions as well as amelioration of business

SustainAwards ceremony: Bernhard Steinruecke, Director General of IGCC; Nimisha Kumar, Deputy General Manager at Mahindra World City, and Joe Kaeser, CEO of Siemens

German Chancellor Dr. Angela Merkel (centre) with Bernhard Steinruecke, Director General of IGCC and Dr. Julie Reviere, Country Director of GIZ

Fridays for Sustainable Future Conference on 11th October 2019

The enlargement of IGCC SustainMarkets’ activities and its growing outreach into the business community is reflected by three highlights of 2019. On 11th October, the Fridays for Sustainable Future: Conference on Sustainability and CSR took place in Mumbai. With more than 100 participants, high-level speakers from different industries and NGOs gathered to discuss environmental and social aspects of responsible business conduct. The conference brought together companies and civil society to showcase best-practice projects and created a momentum for these two sectors to join forces and facilitate innovative solutions with mutual benefit. The second edition of this conference is planned for autumn 2020 and will offer match-making for companies and NGOs to identify common fields of interest and foster joint CSR activities.

GIZ and launched by German Chancellor Dr. Angela Merkel, who attended the AGM. The publication highlights the strategies taken by German companies to successfully balance their economic, social and business objectives to contribute toward sustainable development in India.

and human rights. Moreover, compliance on business integrity will stay on the agenda, along with CSR, to benefit businesses and non-profits alike. To keep its members up-to-date on news, regulations and events on sustainability, IGCC SustainMarkets will launch a newsletter this year.

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SustainMarkets


After previous exhibitions in Nepal and Singapore, Germany’s transition to renewable energy supply arrived in India in October 2019. The exhibition was put together by the German Federal Foreign Office to showcase the importance of energy efficiency and renewable energy for the future. The objective was to attract visitors and experts interested in enhancing their knowledge in the field of renewable energies and informing them about the transition process in Germany. With the increasing importance of environmental topics, the exhibition sought to directly address the challenges of clean energy and climate change in the world.

Between October 2019 and January 2020, the exhibition was displayed by the German Consulate General in cooperation with the Indo-German Energy Forum Support Office at various locations. It was officially inaugurated at the Rajagiri School of Engineering and Technology in Cochin on 9th October 2019 by Margit Hellwig-Boette, Consul General, Bengaluru, who also initiated the travelling exhibition in India. The inauguration was followed by a guided tour of the exhibition attended by around 100 students from the Rajagiri School.

“Energiewende” is Germany’s transition programme towards a sustainable, low carbon, affordable and secure supply of energy based on renewable energy, energy efficiency and energy demand management. Started in 2010, the Energiewende aims at a renewable energy target of 60% and the reduction of 80-95% of greenhouse gas emissions (relative to 1990) by 2050. Until 2022, all remaining six nuclear reactors in Germany will be phased out. An exceptional feature of Germany’s approach is the speed and scope of the transition. Around 50% of all solar panels installed in Germany so far are mounted on roofs of private houses and facilities which belong to farmers. It is they who benefit directly from the Energiewende and have become part of it. The high acceptance for renewable energy amongst German citizens is an important factor of the transition.

Besides Cochin, the exhibition was also shown at several academic institutions in Bengaluru and Mumbai. In all locations, it had been accompanied by panel discussions, quizzes and guided tours to facilitate knowledge and support India’s ambitious target for the expansion of renewable energy. The exhibition attracted thousands of visitors in the three cities. Academics, energy experts, business people and the general public attended it to gain new insights on

Exhibition on Germany’s Energiewende (Energy Transition)

Marja-Sirkka Einig, Deputy Consul General, German Consulate Mumbai opening the exhibition in Mumbai

Guided tour of the Energiewende exhibition

renewable energy and energy efficiency in general and Germany’s transition to 100% renewable energy production in particular.

This project contributes to the following SDGs:

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IGTC News


Certificate Awarding Ceremony: Executive Business Management Programme, 6th Pune Batch 2019

What is life without challenges? And what is more cherished than the feeling of having conquered all of them, both foreseen and unforeseen? The Certificate Ceremony of the 6th EBMP Pune Batch was the true embodiment of this victory.

One year of intertwining high-pressure jobs due to receding market conditions with a rigorous academic schedule comprising of lectures on weekends, frequent tests, assignments, open-book exams, and a detailed final business plan, was no small feat. Undoubtedly each and everyone who had fully participated and lived through this journey deserved a grand celebration and recognition, and the IGTC team went all out to organize and host a beautiful ceremony on Saturday 11th January 2020 at the O Hotel, Pune.

The dignitaries for the grand evening were Gurpratap Boparai, Managing Director of Škoda Auto Volkswagen India Pvt. Ltd.; Marja Einig, Deputy Consul General, German Consulate General Mumbai; Georg Graf, President, Indo-German Chamber of Commerce and Bernhard Steinruecke, Director General, Indo-German Chamber of Commerce.

And the other dignitaries were the 55 graduating managers off the dais, who stood tall and proud in front of the audience consisting of their senior corporate partners, faculty and family members.

Mr. Steinruecke opened the event by sharing his happiness on always beginning the New Year with an event linked to education, upskilling, career progress and transformation. He also highlighted the growth and momentum that the EBMP course has increased among member companies year after year.

President Georg Graf formally welcomed on behalf of the Indo-German Chamber of Commerce. In his speech, he advised the participants to remain grounded.

While the business of business is business, he urged them to never compromise on their ethics and social values regardless of where the world is going. His key message was “Business of business is now purpose, responsibility and sustainability”.

Chief Guest Gurpratap Boparai, Managing Director of Škoda Auto Volkswagen India Pvt. Ltd., started his speech by fondly recalling his early days when he was a student too. While he also spoke on imbibing the right values and ethics, he emphasized on humility. By remaining humble, one continues to learn, not only from the people who are above on the corporate ladder but even people who are below. Very candidly, he shared that corporate life is not always smooth. Just like business cycles, there will be ups and downs in one’s career. One has to tide over them. One has to be persistent, not give up and continue to do one’s best. Results come, but sometimes it is not as instant as desired. He concluded by stating, “One cannot afford not to continue learning, as we do not know how the world is evolving, the downturn in one’s career also has to be wisely utilized”.

Dignitaries on the dais of the 6th EBMP Pune batch certificate ceremony Georg Graf, President, Indo-German Chamber of Commerce

Participants of the EBMP 6th Pune Batch

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IGTC News


Executive Business Management Programme Inauguration of 7th Batch in Pune

Pune City Centre; IGTC teaching faculty Dr. Harkant Mankad, Sagar Narsian, Rajeev Chawla, Anant Amdekar and Jaya Joshi and Radhieka R Mehta, Director, Indo-German Training Centre. All of them applauded the managers on their decision to pursue the programme on weekends and inspired them to continue on this path with full momentum.

Over the first weekend, the managers attended the most thought-provoking lectures on Managerial Economics by Dr. Harkant Mankad in his unique story-telling method. A global perspective on factors influencing geopolitics and world economics. It opened horizons and set them thinking on the VUCA world (Volatility, Uncertainty, Complexity and Ambiguity). We wish them the very best for the year that lies ahead!

“Sapta” or “Seven” is considered an auspicious number in India, e.g. Saptarang, Saptasur, Saptapadi, Saptarishi, Saptasindhu, Saptadhatu and many more. What could be better than starting the New Year 2020 and the New Decade with the 7th Batch of the Executive Business Management Programme in Pune! It certainly takes an extra mile to achieve success and realize dreams on your career path. Setting aside their personal and family time for the next one year, 53 managers in Pune embarked on their learning journey at IGTC on Saturday 11th January 2020.

Continuous nominations of high potential managers came from the existing partner organizations such as ARaymond Fasteners India, Bosch Chassis Systems India, Brose India Automotive Systems, Glatt Systems, Knorr-Bremse Technology Centre India, KSB India, Mercedes-Benz India, Schaeffler India, Škoda Auto Volkswagen India, ThyssenKrupp Industries India and Vulkan Technologies. This was not only a strong endorsement of the impact of the programme but also reinforced IGTC’s resolve toward delivering excellence in management training that would lead to sculpting future leaders and impacting profitability for these organizations.

Besides the close partners, the 7th batch also drew managers nominated by other Indo-German member organizations such as Ferrero India, Haimer India, Kuebler Automation India, Pearl Coating, Dignitaries for the inauguration ceremony of 7th EBMP Pune batch 2020

7th Executive Business Management Programme, Pune batch 2020

Price Waterhouse & Co, Schuler India, SPXFLOW, Volp Software and Learning Systems India, VR Coatings, Wikus India and Wuerth Industrial Services India. The managers came from leading positions in the automobile, engineering and manufacturing industries with an average experience of 12 years. Being technically strong and operations-oriented, most of them looked forward to enhancing their business and commercial acumen and upskilling to enhance their career graph.

Joining the grand inauguration ceremony were the following dignitaries - Bernhard Steinruecke, Director General, Indo-German Chamber of Commerce; Georg Graf, President, Indo-German Chamber of Commerce; Mira Dalvi, Regional Director, Indo-German Chamber of Commerce; Fino Babu, General Manager, Hotel Crowne Plaza

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IGTC News


A New Decade Inspires a New Purpose – The 3C Model – For the Indo-German HR Partner Forum

following topics: • Purpose of the IGTC• Value Proposition for Business Eco System• Staying agile and in tune with the

environment• Looking beyond Business

The new purpose was defined as the 3Cs – • Collaborating and Networking• Contribution to Business and Society• Competency Building

The fulfilling and enriching day came to a close by bidding an emotional farewell to Dr. Lakshmi Nadkarni, Director HR South Asia, BASF India on her retirement. Dr. Lakshmi leaves behind a legacy by initiating “HR - Horizon Redefined”, a series of joint learning and development programmes for the enhancement of the HR Fraternity. The forum will always cherish her mentorship and guidance!

The next meeting of the Indo-German HR Partner Forum will be held on Thursday 14th May 2020 at Bajaj Allianz General Insurance Company, Pune.

On 13th February 2020, into the new decade, the Bayer Group hosted the 1st meeting of the Indo-German HR Partner Forum. KS Harish, Country Group HR Head, who has been one of the founding and senior-most members of the forum, facilitated the agenda throughout the day with the highest level of engagement. Joining him with equal fervour was the entire HR team including colleagues Vaibhav Rane, Priya DCruz, Jaideep Iyengar, Dr. Rajesh Parekh and Sarita Bahl, Country Group Head – South Asia, Communication and Public Affairs.

Bayer with its new vision “Health for All, Hunger for None” had recently undergone an integration with global biotech giant Monsanto. This acquisition – its process, its challenges and its outcome – was an interesting case study for the remaining partners in the forum. It resonated with the spirit of the forum that always believes in sharing and benchmarking best practices and learning from each other.

Through an interactive dialogue across various stakeholders, Harish passionately

narrated the entire integration story emphasizing on the following topics: • Managing change and communicating

exhaustively to inculcate a culture ofoneness

• Magnifying inclusion by creatingprogrammes that enable girls from anagricultural background to enter thesales force and physically challengedindividuals to enter the Bayer SharedServices

• Managing performance

Through the detailed case study, it was evident that the Bayer Group had sailed through this difficult phase with success. In a pulse survey conducted, they had emerged with the highest scores on Customer Focus, Experimentation, Collaboration, Pride, Trust and Advocacy. And this really meant huge kudos to the entire HR team!

Post lunch, all the partners indulged their collective energies and strengths to pave a new way forward for the Indo-German HR Partner Forum in the new decade. Four working groups presented their ideas on the

HR Partner meet hosted by Bayer Group on 13th February 2020

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