German Ambassador Philip Ackermann sees immense business potential in Andhra Pradesh, marking it as a key focus area for Germany. He anticipates a significant boost in trade between India and Germany with the upcoming Free Trade Agreement. During his discussions near Vijayawada, Mr. Ackermann highlighted several sectors of mutual interest, including smart cities, metrorail systems, the diamond industry, renewable energy, and various green technologies.
Regarding the proposed Amaravati smart city and ambitious metrorail initiatives in Visakhapatnam and Amaravati, Mr. Ackermann expressed Germany’s keen interest. He stated, “We possess extensive expertise in smart cities and public transport, especially metrorail systems. If the Andhra Pradesh government is open to collaboration, we are fully prepared to negotiate and partner on these crucial metrorail projects. Our track record includes successful metro development in major Indian cities like Ahmedabad and Bengaluru.”
Ambassador Ackermann praised Andhra Pradesh as a ‘powerhouse of India,’ highlighting its ideal position for leadership in green hydrogen and other innovative non-conventional energy sources. He remarked, “We’ve observed impressive green energy projects, like those by Adani in Gujarat. Chief Minister Chandrababu Naidu’s vision for significant developments in Andhra Pradesh is particularly exciting for Germany. This visit underscores the importance of exploring new business opportunities here, building on our existing collaborations in states like Tamil Nadu, Karnataka, and Telangana.”
Andhra Pradesh is already at the forefront, implementing large-scale projects in green hydrogen, pumped-hydro storage, solar energy, and other renewable sectors. The state is actively pursuing numerous new green energy initiatives and is seeking partnerships with both domestic and international companies.
Beyond economic ties, the Ambassador also highlighted the appealing prospects for Indian students and professionals in Germany, noting the availability of free education at many German universities and robust job opportunities in IT and clinical care. Currently, over 60,000 Indian students are pursuing studies in Germany, with this number increasing by 20% each year.
Free Trade Agreement: A Game-Changer for Bilateral Relations
Addressing concerns about high tariffs on Indian exports to the U.S., particularly for products like shrimp, the German Ambassador underscored Germany’s strong interest in importing from India. He confirmed ongoing efforts towards a Free Trade Agreement (FTA), stating, “Once finalized, this FTA will effectively dismantle existing tariffs. India and Germany are actively developing a framework designed to eliminate or significantly reduce tariffs. Both the Prime Minister of India and the President of the European Commission are firmly committed to achieving this free trade agreement, which I believe will be transformative, enabling Indian products to access the European market tariff-free.”
Partnerships between Indian and German institutions and businesses are flourishing. Germany is particularly impressed by India’s advancements in digitalization, while Indian industries are eager to collaborate with Germany on engineering and manufacturing, with a strong focus on electromobility and renewable energy solutions, as noted by Mr. Ackermann.
“India and Germany are actively collaborating on biodiversity and sustainable green development, supported by a billion Euros in investments, primarily through credit-based programs,” the Ambassador explained. He reiterated that smart cities and metro projects are also key areas, aligned with the joint goal of achieving sustainable development by increasing renewable energy use and reducing reliance on fossil fuels. Germany is particularly keen on exploring India’s potential to become a global exporter of green hydrogen in the future.
Indian Diamonds Gain Preference After Russian Sanctions
Discussing diamond exports from India, the Ambassador highlighted their increased significance following Germany’s sanctions on Russian diamonds. “With sanctions in place against Russian diamonds, we are now turning to India, which has emerged as the leading diamond nation, with Surat surpassing Antwerp in global importance,” Mr. Ackermann noted. He added, “While it’s often challenging to differentiate between diamonds originating from Russia or Congo, we can be confident that diamonds from India are sourced ethically and not linked to the civil wars and conflicts seen in many African nations.”