Bangalore: The India-Germany bilateral trade, which reached $ 5.4 billion in 2003, will see further movement with the German Ministry for Economics & Labour, drawing out plans to bring together SME's (Small and Medium Enterprises) of India and Germany to collaborate and work closely to harness each other strengths.

This was stated by Dr Rainer Jaekel, Head - Dept of Innovation & Technology, Federal Ministry of Economics & Labour, Govt of Germany, addressing a press conference on the sidelines of Bangalore IT.COM yesterday (Nov 2, 2004). Expressing satisfaction at the growing knowledge among companies in India and Germany Dr Rainer Jaekel said, "A series of forums are planned in the two countries to primarily focus on areas where the SME sectors can leverage and collaborate on their expertise." To illustrate this Dr Jaekel added, "There are currently 3.3 million SME's in Germany of which 2,00,000 focus on creating new products and 34,000 enterprises working on R&D.

Large German companies are already in India building software and processes for the global market reaping the benefit of high skilled labour with cost advantage. We believe that the same should be made available to the SME's in Germany. Forums engaging companies to explore possibilities of working closely with each other are critical."

Asserting that Germany is impressed with India's economic resurgence and the business environment, Dr Jaekel highlighted that intec.net, International Technology Cooperation Network will identify areas of opportunity for companies.

Information Technology, Biotechnology, Pharmaceuticals and Chemicals are some of the areas that the SME sector of Germany and India should immediately begin engagement in. The high level delegation will go on to Mumbai to explore opportunities for German companies in the Indian biotech, pharmaceutical and chemical industry.

He further stated that there was a growing synergy between the businesses and research fraternity of the two countries and identified the IT industry as a promising sector for further cooperation.

"India's competitive edge in software in combination with Germany's prowess in technology will enhance the national interest of both nations as well as help close the growing need for collaborative research and development."

He however stressed that the challenge would be on how quickly the two countries will overcome the barriers still existing and get down to business. Germany's ICT market holds great opportunity being the largest economy in the European continent.

Commenting on the business scenario in Germany Ms. Sibylle Herforth, Executive Director, Frankfurt Economic Development GmbH, "Lacking the state-of-the-art IT expertise available in Indian companies, Frankfurt's FEDC has been actively supporting Indian businesses getting started since 1997, and has become India's preferred investment location in Germany, with about 40 Indian IT companies. Presently we are talking to four companies who are on their way to Frankfurt. We strongly believe that we are creating a win-win situation by helping Indian companies in their globalisation strategy and by improving international competitiveness of German companies through these IT services.