Committed to liberalising insurance: PM

“Our Cabinet has already approved a proposal to raise the level of foreign equity participation from 26 per cent to 49 per cent,but this requires parliamentary legislation,” he said.

At their talks on Wednesday evening,the two leaders had candid discussions on the issue,at the end of which Merkel is learnt to have remarked: “We do understand how oppositions react before elections.”

Later,in his address at the closing ceremony of the ‘Days of India in Germany’ – a series of events paying tribute to 60 years of diplomatic relations between the two countries – Singh referred to “intense debates” back home over certain reform measures.

“The trials of the global economy have led to repercussions in India as well and our economic growth has slowed down. In response,our government has considered several measures to revive the engines of growth,” Singh said.

“In a country of India’s size,diversity and complexity,intense debates on the policy choices we make are inevitable. But these debates have not stopped us from taking the hard decisions in the long term interest of our country and our people. In fact,we welcome the debates for the value that they add to our policies and thus make them more durable,” he said.

Pegging 8 per cent as “our potential rate of growth in the near future”,the PM sought to showcase India as an attractive investment destination,citing its strong economic fundamentals and thriving spirit of enterprise and innovation.

“Our message to the world is clear: India remains open and welcoming to foreign investment. We are aiming to attract an investment of nearly $1 trillion in infrastructure over the next five years. I hope German companies and companies from across Europe will make good use of these opportunities and help accelerate our growth process,” Singh said.

Foreign Secretary Ranjan Mathai said that from the German perspective,a forward movement on the insurance issue is “very important”.

“But,everything depends on the outcome at Brussels,” he said. Ahead of the April 15 talks with the EU on the broad-based trade and investment agreement (BTIA),as the free trade pact is being called,the two sides were said to have agreed to move from their respective positions on contentious issues that have dogged negotiations over BTIA for six years.

“I think we came a step closer today but there are still different expectations on both sides that we need to overcome,” Merkel said.

“We are almost there,” said Commerce & Industry Minister Anand Sharma.

On Germany’s demand for a cut in customs duty on automobiles,India proposed that it would help and facilitate German automobile companies start manufacturing units in the country that would address their concerns about customs duty.

India,on the other hand,wanted the EU to grant data-secure country status as the EU has such an agreement with the US,which has always treated India as a data-secure nation.

Asked about the “impediments” in the way of the BTIA,Merkel cited issues related to the insurance and automobile sectors,as well as inclusion of intellectual property rights.

“You are very right that there have been issues which have held back progress in conclusion of a broad-based trade and investment agreement between India and the EU. But there has been progress as well. I think there were some problems in the levels of tariff protection which we would give to India’s automobile sector and we had a very thorough discussion of this issue. I hope that when the ministers meet later this week in Brussels,further progress can also be registered,” Singh said.