German companies were looking for investment opportunities in India in sectors like coal, infrastructure and tourism but wanted relaxation in bureaucratic control and easing of licensing hassles.
While German companies in general considered India as a favourable investment destination alike China, the high import duty, bereaucratic control and license raj remained major problems being faced by investors in the country, Berndt Borchardt, director, South Asian Affairs, Federal Foreign Office of the German Government, said on Tuesday.
He also called for raising the foreign equity ceiling in the insurance sector from 26 per cent.
Borchardt, who was speaking at an interactive session organised by the Indian Chamber of Commerce, said the country also needed to frame strict laws for protection of intellectual property rights.
About bilateral trade between India and the European Union, he said it was expected to witness significant growth in the near future.
Bilateral trade volume, which currently stood at euro 27 billion, was expected to increase to euro 35 billion by 2005, he said.