Germany's Merkel Welcomes Indian PM to Messe Trade Fair -- Update

By Christopher Alessi 

HANNOVER--German Chancellor Angela Merkel welcomed Indian Prime Minister Nerendra Modi Monday at the start of the Hannover Messe trade fair, the centerpiece of the Indian leader's first visit to Germany.

As the official partner country of the Messe--the world's largest industrial trade fair--India is promoting its industrial and technological assets as Mr. Modi seeks to draw German industrial investment to his country.

Months after his election last May, Mr. Modi launched a "Make in India" campaign to promote the country as an investment destination and manufacturing center. His goal is to market India as an industrial hub for foreign players eager to take advantage of the country's large workforce, raw materials and infrastructure.

German industrial companies, the backbone of the German export economy, are particularly attractive to India because they offer proven industrial expertise and technological know how, experts say.

In addition to big multinational players like Siemens AG and Robert Bosch GmbH, a string of midtier firms--collectively known as the Mittelstand--comprise a large part of the German industrial landscape. Many Mittelstand companies, often experts in one niche industrial or technical area, are poised to take advantage of low cost manufacturing in India and easy access to one of the world's fastest-growing markets.

At the same time, Indian firms have been increasingly targeting Mittelstand through mergers and acquisitions, proving to be an unlikely savior for some German companies in financial distress.

Ms. Merkel said she was "impressed" with how India was positioning itself at the fair, adding that she wanted to continue to strengthen an already strong partnership between the two countries.

"We think India will find the right path toward the future when it combines innovation and democracy," Ms. Merkel said.

Write to Christopher Alessi at [e-mail]

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