Modi, Merkel agree to fast-track business deals in India
Narendra Modi on Monday hailed Germany as a "natural partner" of India after signing deals with Angela Merkel on clean energy and speeding up the European powerhouse's investment in Asia's third largest economy.
The German chancellor held lengthy talks with the Indian prime minister on her first trip to New Delhi since Modi's right-wing party stormed to power in May 2014 promising to reform and revive the economy.
Briefly leaving behind a refugee crisis in Europe, Merkel and her ministers signed 18 deals with India's government, including on renewable energy and fast-tracking approvals for German companies to operate in India.
"We see Germany as a natural partner in achieving our vision of India's economic transformation. German strengths and India's priorities are aligned," Modi said after meetings lasting three hours with Merkel, who arrived in the capital on Sunday.
Foreign companies have long despaired at India's levels of taxation, corruption and other obstacles to doing business. But many have welcomed Modi's efforts to make it a faster and more reliable place to invest.
The two countries signed agreements worth two billion euros ($2.25 billion) on German investment in developing India's clean energy corridors and solar energy industry, ahead of crucial UN climate change talks late this year.
"Energy cooperation is very much in the foreground, particularly exploring and developing rural areas is very much on our agenda," Merkel said, standing alongside Modi.
India, the world's third largest emitter of greenhouse gases, has pledged to generate 40 percent of its electricity from renewable sources within 15 years as part of its action plan for the upcoming talks in Paris.
But India has rejected calls to curb its heavy reliance on coal for power, instead calling on industrialised country to bear the burden of curbing emissions.
Germany is already India's most important trading partner in Europe and both Modi and Merkel have said they are keen to increase trade.
Trade was worth nearly 16 billion euros ($17.9 billion) in 2014 -- mostly chemicals, machine tools, electrical goods and textiles.
But Merkel's Foreign Minister Frank-Walter Steinmeier said German companies were concerned about "too much red tape, infrastructure hurdles, corruption, lack of skilled labour (and) tax disputes" in India.
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