The Rediff Special/ Klaus Kinkel

'The German business community hopes that India will not cease its reform efforts, will continue to open up its markets and create the prerequisites to allow investment decisions'

Asia, Europe and the whole world sense the 'winds of change'! A 'new Asia' and a 'new Europe' are emerging. The vision of your great statesmen Gandhi and Nehru and the dream of Konard Adenaur, our first Chancellor, have become true: the division of the world into East and West is history, Germany and Europe are united and the Berlin Wall has been torn down.

The demise of Communism in Europe, the USA's special position, as well as the new political and strategic situation of Russia and China, have noticeably changed Asia's weight. New players have come to a completely altered playing field.

Asia is well on the way towards creating for itself an excellent starting-point for the new century with new ways of thinking. I am convinced that Europe, too, will grasp this unique opportunity for the future by designing a new architecture which unites the whole of Europe and does not create new trenches and spheres of influence but, rather, clears the way for the dream of citizens in all European states: freedom, security and prosperity. Germany will do everything in its power to achieve these goals.

The 'new Asia' is the world's No 1 growth region. India has been vigorously pushing ahead with economic reforms since 1991. India has rightly been given a prominent place in Germany's Concept on Asia. We Germans, too, are undertaking great efforts to reform our country and to prepare it for the 21st century. We want to remain a world leader in the field of technology -- that keeps us busy.

The real challenge facing both Europe and Asia is an intellectual one! We really must realise that we are experiencing a fundamental historic change, comparable to the Indian Revolution in the 19th century. Our ways of thinking and acting must also undergo a similar radical transformation. Those societies which succeed in doing so the fastest will be the winners in the information age.

Since the beginning of your economic reforms, our trade volume has risen from five billion German marks in 1991 to more than eight billion German marks in 1995. For 1996 it will probably be well over nine billion marks. Hardly anyone would have thought that possible only a decade ago.

The world is watching India's 'software miracle' in amazement. Siemens, Deutsche Bank, Lufthansa and many other German companies in this country and their Indian employees are benefiting from it. The diversification of Indian production is increasing. In the case of the automobile supply industry and electronics there has been an increase of between 20 and more than 30%!

Germany is not seeking one-sided advantages but, rather, an equable balance of trade and close partnership which will benefit both sides. Germany's trade policy favours free worldwide competition, international division of labour and fair rules for world trade.

The modernisation of Indian industry has naturally resulted in a great need for capital goods. The export of German machinery to India grew by more than 50% in 1995, one half of overall exports -- a good sign. Our business community hopes that India will not cease its reform efforts, will continue to open up its markets and create the prerequisites to allow investment decisions, especially in the field of infrastructure, to actually be implemented.

Indian exports to Germany are currently still too one-sided. Traditionally textiles, leather, jewellery and precious stones make up about two thirds of all exports. This range must be considerably broadened. India must conquer the markets for high-quality products and concentrate on safety and environmental standards, quality, as well as reliability on the part of suppliers.

A successful path towards these goals is participation in international trade fairs. Germany is the world No. 1 in this field. 115 of the 150 major international trade fairs take place in Germnay. Many Indian exporters are already taking advantage of these great showcases of the world markets to analyse competitors and to obtain new ideas for new products.