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CONSULATE GENERAL OF INDIAFRANKFURT

MONTHLY ECONOMIC AND COMMERCIAL REPORT

MAY 2010

EXECUTIVE SUMMARY

Germany jumpstarts electric car initiative Deutsche Bank CEO doubts Greece can repay debt Discount giant takes over Woolworth Germany Trade surplus jumps as euro slumps Merkel rules out tax cuts Investor confidence falters but eurozone locomotive chugs on Frankfurt scores points as best large city Cologne and Düsseldorf establish Marketing Cooperation ECB resumes dollar loans to eurozone banks Petersberg Climate Dialogue, 2-4 May 2010, Bonn “Investing in India: Projects and Private Equity”, 6 May 2010, Salans Frankfurt "Frankfurt Global Business Week", 17 to 21 May 2010, Congress Center Messe

Frankfurt Commerzbank Business Update 2010 Frankfurt, 20 May 2010, Commerzbank Head

Office, Frankfurt IFFA 2010, The International trade Fair for Meat Technology: Processing; Packaging &

Selling, Frankfurt, 08 - 13 MAY 2010 I M E X 2010, The worldwide Exhibition for Incentive Travel, Meetings and Events, 25-

27 May 2010

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Consulate General of India, Friedrich-Ebert-Anlage,26,60325, Frankfurt am MainE-Mail: [email protected]

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mailto:[email protected]

GERMAN ECONOMIC NEWS

European Central Bank Monthly Bulletin May 2010

Based on its regular economic and monetary analyses, the Governing Council decided at its meeting on 6 May 2010 to leave the key ECB interest rates unchanged. The current rates remain appropriate. Taking into account all new information since its meeting on 8 April 2010, the Governing Council expects price developments to remain moderate over the policy-relevant horizon. Global inflationary pressures – driven mainly by price developments in commodity markets and in fast-growing economic regions of the world – are still being counteracted by low domestic price pressures. The latest information has also confirmed that the economic recovery in the euro area continued in the early months of 2010. The Governing Council expects the euro area economy to expand at a moderate pace in 2010, but growth patterns could be uneven in an environment of unusually high uncertainty. Overall, the Governing Council expects price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. Inflation expectations remain firmly anchored in line with the aim of keeping inflation rates below, but close to, 2% over the medium term. Monetary policy will do all that is necessary to maintain price stability in the euro area over the medium term. Accordingly, the Governing Council will continue to monitor all developments over the period ahead very closely.

Turning to the economic analysis, euro area economic activity has been expanding since mid-2009, after a period of sharp decline. Notably, the economy has benefited from the ongoing recovery in the world economy. Recent economic data – including positive survey indicators – support the view that the economic recovery in the euro area is continuing in 2010.

Looking ahead, the Governing Council expects real GDP to expand at a moderate pace. The ongoing recovery at the global level, and its impact on the demand for euro area exports, should provide support to the euro area economy. At the same time, the financial crisis is expected to have a dampening effect on economic growth given the ongoing process of balance sheet adjustment in various sectors, the expectation of low capacity utilization and weak labour market prospects.

ADDITIONAL MEASURES DECIDED BY THE GOVERNING COUNCILOn 10 May 2010 the Governing Council decided on several measures to address the severe tensions observed in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy oriented towards price stability in the medium term. These measures are designed not to affect the monetary policy stance.

In particular, the Governing Council decided to conduct interventions in the euro area public and private debt securities markets, under a Securities Markets Programme, to ensure depth and liquidity in those market segments which are dysfunctional. The impact of the above interventions will be sterilised by conducting specific operations to re-absorb the liquidity injected through the Securities Markets Programme.Finally, the Governing Council decided to reactivate, in coordination with other central banks, the temporary liquidity swap lines with the Federal Reserve System, and to resume US dollar liquidity-providing operations at terms of 7 and 84 days. These operations will take the form of repurchase operations against ECB-eligible collateral and will be carried out as fixed rate tenders with full allotment. The first such operation was carried out on 11 May 2010.


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German Economy

Germany jumpstarts electric car initiativeChancellor Angela Merkel has kicked off an ambitious initiative to put one million electric cars on Germany’s streets in the next decade. Berlin hopes the so-called “National Platform for Electric Mobility” will give the country’s all-important car industry a technological edge over foreign competitors in order to secure some 750,000 jobs. There were 400 representatives from the car industry, science community and policymakers. Led by Henning Kagermann, the former head of software firm SAP, the initiative will co-ordinate the efforts of seven working groups focused on areas such as electric motors, batteries and the infrastructure required for e-cars. The German government has said it hopes to have one million electric vehicles on the road by 2020.

Deutsche Bank CEO doubts Greece can repay debtDeutsche Bank Chief Executive Josef Ackermann has cast doubt on Greece's ability to repay its debt and said a $1 trillion euro zone rescue package will help stabilize Italy and Spain, while the situation in Portugal is more difficult. Ackermann, one of Europe's top bankers who has helped to put together a private-sector bailout package for Greece, questioned the country's ability to turn itself around. Greece has been forced to implement tough austerity measures as a precondition for an international bailout, a move that has sparked widespread protests in the southern European country. Greece is the first country in 11 years of European monetary union to require a political pledge of support as fears over its debt sparked a market attack that has dented the euro and required euro zone governments to team up for a bailout. Europe must intensify efforts to turn around Greece's financial situation to avoid a need to restructure its debt, since this would impact German banks. Deutsche Bank has said European banks could face losses of between 50 billion euros ($63.5 billion) and 75 billion if the debt crisis in Greece continues to escalate and banks are forced to cut on Greek sovereign debt. According to Ackermann, despite the turbulence, the euro zone remains stronger than the United States or the UK and Germany in particular with its strong dependence on exports, will profit from a weaker euro. Ackermann has played a key role in rallying Germany's financial sector, persuading them to contribute 8.1 billion euros over three years to add to a 110 billion euro bailout of Greece.

Majority of Germans support Greek aidA representative survey conducted by the Forsa opinion research institute has found that a slim majority of Germans approves of their government's and Europe's efforts to stabilize the Greek economy. The poll of some 1,000 people in early May showed 52 percent of Germans agreed with the European plan to prevent Greece from defaulting on its enormous public debt. However, a significant 43 percent of those surveyed were opposed. Despite all the bad news coming out of Athens, a large number of Germans still held a positive view of the Greeks. Fifty-seven percent of those queried said Greece, as a whole, was an attractive vacation destination, but more than 40 percent added that, due to the current level of domestic tensions from the financial crisis, they would not travel to the country.Germans are also divided when it comes to the euro. Nearly two-thirds (63 percent) said they were proud to live in a country that had introduced the common European currency, but 54 percent said, given the choice, they would prefer to go back to the old German deutschmark.


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http://www.reuters.com/places/greece

http://www.reuters.com/places/germany







Germans begin to feel deep cuts following modern Greek tragedyGermans were urged to face reality as the full impact of the euro bailout on Europe's biggest economy was laid bare by politicians and financial experts for the first time. The nation is being forced to make savings more extensive than at any time since the end of World War II, and education and family welfare are expected to take the largest hits. That assessment emerged after cabinet gave the go-ahead for Germany to put €123 billion ($172 billion) towards the rescue package to stabilise the eurozone. That figure could rise to almost €150 billion if needed. Germans now face years of belt-tightening.Tax cuts that were promised by Dr Merkel's government have now been scrapped. Instead, policymakers are talking of raising taxes to fill a €10 billion gap. Experts are warning that inflation is likely to rise owing to the euro's recent fall in value against other currencies, which will eat into wage rises and pensions. News of the cuts has stoked existing anger towards Greece, which many Germans feel is being rewarded for profligacy. According to Ulf Henniger, mayor of Gierstadt in Thuringia, which is one of thousands of municipalities facing budget freezes, it can't possibly be the case that the states and people have been made liable for the irresponsible behaviour of other euro countries such as Greece. Deputy leader of chancellor Angela Merkel's Christian Democratic Union, Roland Koch, who is being touted as a possible successor to the finance minister Wolfgang Schaeuble, has called for a review of a policy that guarantees kindergarten places to all children under the age of three. This has enraged family rights campaigners. Bavaria's social affairs minister, Christine Haderthauer, said even the fact such cuts were being discussed sent out dangerous signals.

Customers unable to file taxes amid bank delaysHundreds of thousands of Germans could not file their 2009 taxes on time. System changes at many of the country’s top banks led to delays in sending out tax records. Account holders at Deutsche Bank, Commerzbank, Dresdner Bank and Targobank experienced delays. These banks have only sent a portion of their customers’ files for 2009 related to the government's 25 percent tax on investment income such as interest payments and dividends. This meant that many were not able to file their tax forms by the May 31 deadline. The banks have reportedly been trying to adjust their systems for months to suit complex new rules first released by the Finance Ministry on December 22 in a 150-page document. Some 719,000 private customers at Commerzbank subsidiary Comdirect are said to be still awaiting their account balances, while another 300,000 at Targobank are still empty-handed. Many of these customers are owners of foreign investments, though normal citizens and pensioners will also face delays.

Deutsche Bank CEO rejects blame for IKB collapseDeutsche Bank chief executive Josef Ackermann rejected accusations that Germany's biggest bank torpedoed mid-sized lender IKB in 2007 as the subprime crisis blew up. Appearing as a witness in the breach of trust trial of former IKB boss Stefan Ortseifen, Ackermann dismissed Ortseifen's claims that Deutsche's move to halt credit to IKB brought the bank to its knees. Ackermann said Deutsche Bank had asked IKB several times about the value of assets in IKB's Rhineland Funding vehicle before cutting a 67-million-euro ($85.1 million) trading line. On July 20, 2007, only days before its near-implosion, IKB sent out a release to investors saying the bank saw "limited" impact from the subprime lending crisis. Duesseldorf prosecutors contend that statement constituted a wilful misleading of the markets as it encouraged investors to continue buying shares. Denying the charges, Ortseifen has told the court that Deutsche's decision to cut credit lines on July 27, 2007 caused immeasurable reputational damage for IKB, crimping its ability to function normally in nervous markets. IKB became a high-profile casualty of the credit crisis and required several bailouts from state development bank KfW and the German state after its off balance-sheet investment vehicles ran into


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funding problems. Following the rescues, IKB was taken over by KfW, which sold it to U.S. investor Lone Star. IKB's dealings with Goldman Sachs Group Inc are under review by U.S. regulators as part of a separate investigation. Goldman Sachs has said it provided IKB with extensive information about the underlying mortgage securities and that IKB knew about the risks associated with them. Ortseifen faces up to five years in jail if he is found guilty of breach of fiduciary trust and of misleading investors.

Discount giant takes over Woolworth GermanyJust over a year after German discounter Woolworth filed for bankruptcy, the retail chain has returned to profitability and found a new investor. Woolworth is being sold to North Rhine-Westphalia-based HH Holding, a subsidiary of the Tengelmann retail group, which plans to expand the brand's network of 162 stores to 500 outlets within a few years, and eventually to 1,000. The sale saves some 4,300 jobs, at least for a year. HH Holding was put forward by New York-based Cerberus Capital Management, which leases the commercial space for 82 Woolworth stores and strong-armed the company's insolvency administrator into rejecting three rival bidders. Insolvency administrator Ottmar Hermann said he expects Woolworth's gross income to reach 500 million euros ($634 million) this year. The company's return to profitability was achieved by selling or closing 150 smaller outlets, each approximately 400 to 450 square meters in size with an average of 10 employees. The stores which were kept are 900 to 1600 square meters in size and employ 25 to 30 people each. The purchase price was not disclosed. Woolworth has been in business in Germany since 1926, and was once part of the US-based department store chain Woolworths. That company went out of business in 1997, while the British chain folded at the beginning of 2009. Woolworth's new owners are uniquely positioned to expand the chain because they also own clothing discounter KiK. The textile discounter has nearly 3,000 stores and a network of direct contacts with clothing manufacturers in Asia. Although Nuvoloni said the new owners are committed to maintaining Woolworth as an independent brand, the chain's central office in Frankfurt is being closed. A new office will be opened in the North Rhine-Westphalian city of Bohnen, where KiK is headquartered.

Trade surplus jumps as euro slumpsGermany's trade surplus leapt higher in March, official data showed, with the euro's fall in value against other major currencies helping crucial exports rack up solid gains. The trade surplus for Europe's biggest economy jumped to €17.2 billion ($22.2 billion), from €12.7 billion in February according to figures released by the national statistics office. The result was also much larger than expected, topping an average analyst forecast of €14 billion compiled by Dow Jones Newswires. German exports were largely responsible for the gain, posting an increase of 23.3 percent in March compared with the same month a year earlier, while imports were 18.3 percent higher. According to figures provided by the German central bank, the country's current account of the balance of payments - a broad measure of trade with other countries - showed a surplus of €18 billion in March. That was also well above a forecast of €12.5 billion, and the March 2009 figure of €12.3 billion. Germany lost its title of leading global exporter to China last year but is getting a boost now from the euro's fall in value against other major currencies as a result of the Greek debt crisis. That would cause energy prices in the eurozone to spike however, and probably set inflation back on a sharply steeper upwards curve. On a monthly basis meanwhile, German exports gained a seasonally corrected 10.7 percent in March, while imports were up by 11.0 percent, the Destatis data showed. Exports have helped the German economy emerge from its worst recession since World War II, and the economy ministry that industrial output shot up by four percent in March, a day after unveiling a spike in industrial orders.


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Merkel rules out tax cutsChancellor Angela Merkel has ruled out tax cuts in Europe's biggest economy in the near future following a bitter defeat in a key state poll in North Rhine-Westphalia. She said that this meant at least two years. Her current term runs until 2013. Her coalition allies since the national election in September, the pro-business Free Democrats, had pressed Merkel to slash taxes but Germans are sceptical in light of Germany's parlous public finances. Merkel said that instead of cutting taxes, her government would focus on simplifying the taxation system.Merkel's Christian Democrats (CDU) were also in an alliance with the FDP in the western state of North Rhine-Westphalia (NRW), Germany's most populous, but voters threw out the coalition in the election. Experts said that the defeat was down in large part to Merkel's decision to contribute to a massive bailout of Greece, and to squabbling in her new coalition.The election in NRW means Merkel's coalition no longer has a majority in the upper house of parliament, making the passage of legislation harder. But she ruled out any cabinet reshuffle. Merkel insisted that the costly efforts to shore up the euro were also in the interest of German taxpayers. Merkel also pledged a round of budget cuts to get Germany's fiscal house in order. According to the Finance Ministry German tax revenues are expected to fall short of current projections by billions of euros in the next three years. The fall in tax income forced the government to reconsider its promise to cut taxes, and take further measures to curb spending.

Unitymedia expects more consolidationThe head of Unitymedia has said the second largest cablenet in Germany is on the lookout for further takeover targets in the market. Gene Musselmann, who is also the President of UPC Broadband, said he anticipated a consolidation in the market. Top of the list are the so-called Level 4 operators that provide the larger cable companies with access to residential housing. Musselmann said If an opportunity arises, they would buy these companies and take over their expiring contracts. He said such a strategy would enable Unitymedia to extend its footprint by several hundred thousand. However, a spokeswoman for Unitymedia told that such a strategy was unlikely, given the close co-operation between Unitymedia and its Level 5 partners. Unitymedia, acquired by Liberty Global in January, currently has 4.5 million customers in North Rhine Westphalia and Hessen.

Investor confidence falters but eurozone locomotive chugs onGerman investor confidence has fallen, a key survey showed, but Europe's biggest economy should chug along a little longer as EU leaders try to get the crisis-hit eurozone back on track. A survey of financial experts by the ZEW economic research institute found sentiment has fallen to an indexed 45.8 points, the seventh decline in eight months, owing largely to the eurozone's fiscal and debt problems. The index remained well above its historical average but a six-month average also fell, suggesting Germany's economic recovery could run out of steam in the second half of the year. On the positive side, the European Union's statistics arm Eurostat said the euro's decline in value had boosted the 16-nation eurozone trade surplus to €4.5 billion ($5.5 billion) in March. A breakdown of that data showed Germany contributed a surplus of €12.1 billion, while Ireland, Austria and Belgium posted gains of between €1.6 billion and €1.0 billion. France, Luxembourg and Slovenia were also in the black. French and other European leaders have pressed Germany to boost domestic consumption, saying strong trade surpluses recorded by Berlin come in effect at the expense of eurozone partners, especially weaker members. The chairman of the eurozone finance group backed controversial plans for Brussels to vet budgets in all 27 EU countries before they are put to national parliaments. Germany supports greater cohesion among eurozone economic policies. Merkel faces staunch domestic opposition to Germany's participation in an IMF-led bailout of Greece and the creation of a trillion-euro emergency debt stabilization fund for the eurozone.


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http://www.broadbandtvnews.com/2010/05/06/unitymedia-seeks-takeover-targets/

Germany leaves EU competition in terms of labour costs behindThe EU comparison demonstrates that Germany is gaining increasingly better competitive conditions and thus strengthens its position as top export country. This can be particularly attributed to the diminished growth of labour costs: According to the Bureau of Statistics Eurostat, in the fourth quarter of 2009 these only increased by 1.2 percent, whereas the Europe-wide increase was at 2.3 percent. The increase in the Eurozone was also bigger than in Germany at 2.2 percent.

Economic & Business Report from the 4 German States under the jurisdiction of CGI, Frankfurt: North Rhine-Westphalia (NRW), Hesse, Rhineland-Palatinate (RLP) & Saarland

Frankfurt scores points as best large cityThe city of Frankfurt won prizes in different categories in the competition “European Cities and Regions of the Future 2010/2011”. Thus, Frankfurt is deemed the best large city in Europe as well as large city with the biggest economic potential and the best infrastructure. In the areas of investment incentives and quality of life, Frankfurt was able to achieve excellent places. The ranking results of the Foreign Direct Investment Magazine were announced at this year’s property fair MIPIM.

Cologne and Düsseldorf establish Marketing Cooperation"Meetropolis" is the new marketing cooperation by the two big German cities Cologne and Düsseldorf to jointly advertise as attractive locations for meetings and congresses on an international scale. This new marketing cooperation was initiated by the Cologne Convention Bureau and the convention bureau Düsseldorf. In future, the two institutions will be represented under their new joint advertising brand "Meetropolis" at trade fair presentations, in ad campaigns and through active Public Relations. Located at a distance of just 40 km in the heart of Europe, in the most populous German state (North Rhine-Westphalia) the two metropolises Cologne and Düsseldorf are among Germany's major business, science and communication centres. The two capitals on the Rhine also rank very high as meeting and congress destinations. In the current ranking of the "Meeting and EventBarometer 2009" Cologne and Düsseldorf are among the Top 5 of the most popular German conference destinations. Altogether nearly 300 event facilities, two big exhibition centres and over 450 hotels are available, not forgetting the other meeting and accommodation options in the neighbouring regions. Both in Cologne and Düsseldorf the congress and meeting business has continuosly developed further over the past few years. The first official "appearance" of the two Convention Bureaus under the shared "Meetropolis" brand took place at the International Meeting Exhibition IMEX from 25 to 27 May 2010 in Frankfurt.

ECB resumes dollar loans to eurozone banksThe European Central Bank in Frankfurt resumed loans of US dollars following an agreement with the US Federal Reserve that is part of a massive EU plan to save the euro. The ECB loaned $9.2 billion (€7.2 billion) to seven eurozone banks at a fixed rate of 1.22 percent, a statement said. Central banks in several countries agreed over the weekend to swap currencies for dollars provided by the Fed to ease tension on interbank lending markets caused by the eurozone debt crisis. The ECB announced several measures aimed at financial markets, including the resumption of six-month loans in euros and the purchase of public debt,


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something it had refused to do until now. The exceptional moves were part of a larger plan drawn up by the EU and the International Monetary Fund to help troubled troubled eurozone countries worth up to €750 billion. The dollar loans were agreed upon after it became more difficult for eurozone banks to obtain the US currency owing to reluctance on the part of US banks to lend it, economists said. The ECB said that it would intervene in securities markets to buy government and private debt, a move that represents unprecedented and controversial support for troubled eurozone governments. While providing critical breathing space for eurozone countries that face mounting problems getting financing on private capital markets, the decision raises questions about the the ECB's independence from political influence.

ECB lays cornerstone for new Frankfurt headquartersAs a financial storm battered Europe and rain beat down on Frankfurt, the European Central Bank has laid the cornerstone for its glittering new twin-towered headquarters. ECB president Jean-Claude Trichet spoke next to a landmark produce market built in 1928 that has been integrated into the design of the headquarters and will serve as a visitor and media centre. Extensive efforts to preserve the market, including a legal challenge by its architect's heirs, were responsible in part for a three-year construction delay that saw the official launch coincide with the eurozone's worst crisis to date. Trichet, head architect Wolf Prix and ECB governors placed building plans, euro banknotes and coins and newspapers from across the 16-nation eurozone in a metal box to be sealed inside the building's foundation. In Frankfurt, Trichet vowed to respect the timetable and budget for the 44-storey ECB headquarters, which should be finished by the end of 2013, with full occupancy in 2014 instead of 2011 as originally planned. Total costs have been estimated at €850 million at 2005 prices, when the budget was established. Once inflation is taken into account, the final cost will likely be higher. The design showcases towers of 185 and 165 meters (607 and 541 feet) linked by an atrium and interchange platforms, and will provide work space for between 1,500-1,800 people. Each eurozone member will have a representative office and the ECB governing council is to meet at the top of the higher southern tower. The buildings are expected to be 30 percent more energy efficient than German standards at the time of their design, with natural ventilation and a geo-thermal assisted heating network.

Sword FircoSoft Widens its Presence in Germany's Market With WestLB AG Going LiveSword FircoSoft, the leading global provider of watchlist filtering solutions announced today that WestLB has selected Sword FircoSoft's state-of-the-art watchlist filtering solution to fight money laundering and terrorist financing. Sword FircoSoft also offers best-in-class straight through processing and business intelligence solutions. Sword Group delivers high value business applications to the world's largest companies globally. With operations in 37 countries, it is an international leader in the delivery of Business Process Improvement solutions. WestLB AG opted for Sword FircoSoft's watchlist filtering solution, Firco Filtering Suite, to filter their SWIFT transactions. WestLB AG is a European Commercial bank with firm roots in North Rhine-Westphalia, Germany's largest federal state. With total assets of EUR242,3 billion as at December 31,2009, it is one of Germany's leading financial services providers. Firco Continuity, Firco Filtering Suite's module to filter financial transactions, has been deployed within four weeks at WestLB, which represented the first phase of the project. The bank is now equipped with state-of-the-art filtering technology which allows them to filter their SWIFT transactions in real-time against official sanctions lists like OFAC, EU, UN, Bundesanzeiger Verlag (Germany) and others.

The Ford Fiesta Production In Cologne Has Reached 6 Million UnitsFord celebrates production of six million Fiesta units in 31 years. The copy number six million came out from the German plant gates in Cologne. The Ford plant from Cologne produced copy number six million. The


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plant from Germany is working since 1979 with its counterpart from Valencia for the production of the mini class at Ford. This year, Ford Fiesta has become the best selling car at the European level, surpassing the Volkswagen Golf. Around 4,300 employees are currently producing 1,885 Ford Fiesta and Ford Fusion models daily in a flexible three-shift-system at the Niehl site. In 2009, the plant manufactured 406,200 cars in total – 350,500 Fiestas and 55,700 Fusions. About 80 % of the plant’s total vehicle production is exported. The new Ford Fiesta debuted in production at German plant in August 2008. The Fiesta will begin to arrive in dealer showrooms in North America during the second quarter of 2010.

EVENTS & PROMOTIONAL ACTIVITIES

Petersberg Climate Dialogue, 2-4 May 2010, Bonn

Germany and Mexico jointly hosted the Petersberg Climate Dialogue in Germany, from 2-4 May 2010, with a view to developing, in an informal framework, a political position in time for the next round of formal negotiations under the UNFCCC.

The Dialogue was jointly opened by German Chancellor Angela Merkel and Mexican President Felipe Calderón. Environment and climate ministers from 43 countries discussed concrete steps to reach an ambitious outcome at the next session of the UNFCCC Conference of the Parties, in Cancún, Mexico, and the role of the Copenhagen Accord in achieving this. Working groups addressed different issues, including: mitigation, reporting, adaptation, carbon market, financing, technology and reducing emissions from deforestation.

Participants agreed that: combating climate change remains an urgent challenge; swift, joint action by the international community is indispensable; and concrete implementation of climate protection measures should occur in parallel to the UN negotiations. The environment ministers further agreed on prioritizing in further UN negotiations: reducing greenhouse gas emissions in developed and newly industrializing countries; setting up an international system for monitoring mitigation activities; supporting adaptation measures in developing countries; and financing international climate protection.

During the meeting, Germany, South Africa and the Republic of Korea launched an initiative to support developing countries in elaborating environment- and climate-friendly growth strategies, subject to transparent, measurable and comprehensible implementation.

Consul General Mr. Ajit Kumar attended the Meeting on 2nd and 3rd May 2010 and interacted with the participants.

“Investing in India: Projects and Private Equity”, 6 May 2010, Salans Frankfurt

An event “Investing in India: Projects and Private Equity” aimed at giving a profound insight into Indian projects and infrastructure opportunities and Indian M&A and Private Equity markets took place at the premises of Salans Frankfurt, a law firm.

The speakers introduced their industrial sectors and the specialties of the Indian market. It was also an occasion to build the German-Indian network and take the opportunity for a vivid exchange. “Investing in India: Projects and Private Equity” is part of the Salans Workshop Series “Investing in …” The seminar “Investing in Russia” will take place on 1 July 2010 and the seminar “Investing in China” on 30 September 2010, both at the premises of Salans Frankfurt.


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The opening Words were delivered by Consul General Mr. Ajit Kumar and Dr. Ivana Mikešić, LL. M., Salans LLP.

Consul General spoke about the global economic crisis and India’s good performance despite the crisis. He said that Foreign Portfolio Investors (FPI) have invested a record US$ 5 billion in Indian corporate papers in the first four months of 2010. India attracted Foreign Investment (FDI) inflows of US$ 1.74 billion in November 2009, a 60% increase over the same month last year. In December 2009, FDI inflows stood at US$ 1.54 billion and recorded a 13% increase over the same period last year. These figures underline that India has become a haven for global investors. Consul General said that the biggest opportunities are arising in infrastructure sectors, mainly in highway projects.

He said that during the crisis period also, the German outlook remained positive with German companies announcing large investments in India over the next few years. The German FDI in India in CY 2008 stood at € 5.0 bn. He said that the government of India tries to permanently facilitate investments in the country and to create an investment friendly climate.

There were other prominent speakers. Ansgar Sickert, Managing Director, Fraport India spoke on A Hitchhiker’s Guide: Challenges of India’’. Klaus F. Meier from Maier & Vidorno GmbH / M+V Market Development Services Pvt. Ltd. spoke on ‘’Project Realisation in India: A Hands-on Approach’’.

Infrastructure Projects: Laws, Policies & Regulatory Issues (Sector Analysis: Roads and Renewable Energy)’’ was the theme on which Mr. Sunil Seth, Senior Partner, Seth Dua & Associates. Later he also spoke on ‘’Private Equity: Legal Overview and Challenges’’. Aashish Bhinde, Executive Director, Avendus Capital Pvt. Ltd. gave a presentation on ‘’German-Indian M&A – What happened so far. Including an overview of the Indian Private Equity Industry’’.

Maleki Group launches "Frankfurt Global Business Week", 17 to 21 May 2010, Congress Center Messe Frankfurt

For the first time a Conference series “Frankfurt Global Business Week" was launched from 17 to 21 May 2010 by the Maleki Group, Financial Communications & Consulting, Frankfurt. The conference week dealt with area of topics, which shape the metropolises in the international challenges from the economic and social political perspective. In around 20 symposia at the premier in the Congress Center of Messe Frankfurt, topics such as energy, water, sustainable city planning, media, entertainment and creative industries, sport, tourism, as well as mega events were on the agenda. The project, which will position the metropolitan region Frankfurt RheinMain in the international competition, will be supported by several institutional partners at the level of city and state. There were several podium discussions, get togethers and round table meetings. From now on it will take place every year.

There were many speakers from various fields like Economy, media and entertainment, politics, education, tourism, Social institutions, Space & Energy, Research and Development, Culture, etc. Some of the prominent speakers were Mr. Chris Ahearn, Präsident, Reuters Media, New York; Dr. Matthias Arning, Head of City Editorial staff, Frankfurter Rundschau, Frankfurt a.M.; Mr. Rüdiger Assion, Director Corporate Communication, Deutsche Börse AG, Eschborn, Taunus, Mr. Roland Koch, Minister President of Hesse, Wiesbaden; Mr Stephan Detjen, Chief Editor, Deutschlandfunk, Cologne; Dr. H.E. Petra Roth, Lord Mayor of City of Frankfurt am Main and President of German Association of Cities and Towns, Cologne, Michael Boddenberg, Hessian Minister for Federal matters and Attorney of the State with Federation, Wiesbaden; Dr. Mathias Müller President, Chamber of Commerce and Industry, Frankfurt am Main; Dr. Nader Maleki Chairman & CEO, Maleki Group, Frankfurt a.M.;Mr. Detlef Braun, Managing Director, Messe Frankfurt GmbH, Frankfurt a.M.

Consul General Mr. Ajit Kumar attended the Meeting on 17th May 2010.Consulate General of India, Friedrich-Ebert-Anlage,26,60325, Frankfurt am Main

E-Mail: [email protected]


Commerzbank Business Update 2010 Frankfurt, 20 May 2010, Commerzbank Head Office, Franfurt

Commerzbank Business Update was held for Financial Institutions at Commerzbank’s Head office in Frankfurt. Mr. Christof Gabriel Maetze, Division Board Member and Global Head of Financial Institutions presented the Business Update 2010. During the Business Update the key contacts from Financial Institutions in Germany and abroad were briefed on key issues related to Commerzbank, its financial condition and its strategy. The meeting provided an opportunity to meet with the entire management team of Commerzbank’s Financial Institutions Division and offered an excellent platform to meet the international financial community of Frankfurt.

Consul General Mr. Ajit Kumar attended the Meeting. The heads and members of many financial institutions of Germany were present on the occasion.

TRADE FAIRS IN THE 4 STATES

IFFA 2010, FRANKFURT, 08 – 13 MAY 2010 The International trade Fair for Meat Technology: Processing; Packaging & Selling

Profile of IFFA 2010 IFFA is the leading international trade fair for processing, packaging and sales in the meat industry. It has been the international platform for the meat-processing industry and the world’s foremost forum for investment decisions since 1949. IFFA takes place every three years and is organized by Messe Frankfurt GmbH

58,000 trade visitors (2007: 61,328) from 130 countries came to see the range of products and services offered by 949 companies (2007: 908)

Product SegmentThe range of exhibits covers the fields of slaughtering, dismembering, processing, weighing, filling / packaging, conveying, cooling, storing, transporting and selling, as well as spices and additives for meat and sausage products, that is machinery and equipment for all stages of the process chain – from slaughtering to processing and packaging.

Facts and figuresIFFA 2010 2010 2007

Total No. of Exhibitors 949 913No. of German Exhibitors 412 443Number of countries 47 48Exhibition space(m²) 106 638No. of Visitors 58,000 61478- from Germany - 32109from outside Germany - 29219

Profile of Participants


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There was just one Indian Exhibitor - LAXMI Enterprises Shree Balaji Gums & Spice Stuff Pvt. Ltd.

From 8 to 13 May, the industry showed the latest technologies and solutions for slaughtering, processing, packaging and selling at Frankfurt Fair and Exhibition Centre. Messe Frankfurt welcomed around 60,000 trade visitors from the industry, butchers’ trade and retail trade. The increasing dynamism of the world’s markets is also reflected by the IFFA exhibitor statistics. This year, 949 companies from 47 countries presented their latest products and services, an increase of 41 over the last event in 2007 and the result of more foreign exhibitors taking part. Although the number of German exhibitors has declined slightly (2010: 412, 2007: 443), they still occupied over half of the 100,000-plus square metres of exhibition space.

I M E X 2010, Frankfurt , 25-27 May 2010The worldwide Exhibition for Incentive Travel, Meetings and Events

Every year more and more meeting and event planners and marketing professionals come to IMEX, which is the world's leading exhibition for meetings, incentive travel and event marketing. They include national and regional tourist offices, convention and visitor bureaux, hotels, conference and exhibition centres, cruise lines, airlines, spa resorts and event management specialists. It is organized by Regent Exhibitions Ltd based in East Sussex London, UK.

Total exhibiting companies over 3,500Total countries 157Total exhibition space (sqm) 17,500No. of Indian Exhibitors: 22Total hosted buyers & trade visitors 8,905Total hosted buyers 3,870Total countries 63The next IMEX takes place 24th – 26th May 2011 at Messe Frankfurt.

There was a Joint Stand of Incredible India Tourism. Consul General Shri Ajit Kumar inaugurated the Govt. of India Tourist Office stall and the Indian Pavilion on 25 May 2010.In total 3870 hosted buyers attended IMEX 2010 from 63 countries including long-haul destinations such as Argentina, Australia, Canada, Egypt, Hong Kong, Indonesia, Israel, Japan, Jordan, Lebanon, Malaysia, Mexico, Philippines, Qatar, Saudi Arabia, Singapore, South Africa, Syria, Thailand, Uruguay, United Arab Emirates and Venezuela among others.


IFFA 2010 2010 2007

No. of German Exhibitors 412 443No. of Indian Exhibitors 1 1China + Hong Kong 20+1 12+2Republic of Korea 1Philippines 2Singapore 1Japan 2Taiwan 4Turkey 2Islamic Rep. of Iran 1

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http://iffa.messefrankfurt.com/frankfurt/en/besucher/exhibitor.details.html/laxmi-enterprises-shree-balaji-gums-spice-stuff-pvt-ltd.html

A series of free educational seminars on vital business subjects were held each day in both English and German as part of the inspirational New Vision programme.

During MayBusiness Visa: 1134

Employment Visa: 23

Trade Enquiries: 28

Trade Disputes: 6

Trade enquiry from 28 Companies for about more than 130 items.


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TRADE FIGURES

GERMAN IMPORTS OF TOP 10 ITEMS FROM INDIA AND THE SHARE OF 4 STATES OF NRW, HESSE, RHINELAND-PALATINATE AND SAARLAND DURING JANUARY-APRIL 2010Value in 1000 Euro

Top 10 Items

Total Imports NRW

% share Hesse

% share

Rhine-Pal

% share

Saarl-and

% share

Total 4 states

% shar

e

Apparel of knitted or crocheted fabrics of cotton 153,115 44,289 28.93 1,177 0.77 941 0.61 333 0.75 46,740 30.53Apparel of cotton, excl. of knitted or crocheted fabrics 147,009 33,903 23.06 1,990 1.35 274 0.19 17 0.05 36,184 24.61Textile products, not mentioned elsewhere 108,121 48,000 44.39 2,511 2.32 1612 1.49 237 0.49 52,360 48.43Prefabricated chemicals, not mentioned elsewhere 87,544 13,194 15.07 10,455 11.94 7133 8.15 0 0.00 30,782 35.16Footwear 77,685 16,475 21.21 3,683 4.74 12774 16.44 2,823 17.14 35,755 46.03Articles of leather and leather clothes (excl. footwear) 77,555 16,575 21.37 9,490 12.24 3598 4.64 104 0.63 29,767 38.38Electronic valves and tubes and other electronic components 74,897 2,187 2.92 974 1.30 31 0.04 1 0.05 3,193 4.26Articles of metal, not mentioned elsewhere 67,989 21,396 31.47 3,367 4.95 4709 6.93 171 0.80 29,643 43.60Basic pharmaceutical products 56,476 4,707 8.33 4,980 8.82 4571 8.09 17 0.00 14,275 25.28Pharmaceutical products 50,037 16,032 32.04 4,409 8.81 3461 6.92 4 0.02 23,906 47.78

Rest items 997,694 244,391 24.50 88,074 8.83 40,363 4.05 8,211 3.36 381,039 38.19

Total 1,898,122 461,149 24.30 131,110 6.91 79,467 4.19 11,918 0.63 683,644 36.02


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State-wise German Imports during Jan-April 2010

24.30%

6.91%

4.19%

0.63%

63.98%

NRW

Hesse

RPL

Saarland

Other states

INDIAN EXPORTS TO GERMAN STATES OF NORTH RHINE-WESTPHALIA, HESSE, RHINELAND-PALATINATE AND SAARLAND DURING JANUARY-APRIL 2009 & 2010

Value in 1000 EURO INDIAN EXPORTS TO Jan-April

09Jan-April

10NORTH RHINE-WESTPHALIA

Textile products, not mentioned elsewhere 52,122 48,000Apparel of knitted or crocheted fabrics of cotton 42,943 44,289Apparel of cotton, excl. of knitted or crocheted fabrics 45,526 33,903Articles of metal, not mentioned elsewhere 23,130 21,396Articles of leather and leather clothes (excl. footwear) 17,776 16,575Footwear 15,001 16,475Pharmaceutical products 13,266 16,032Shell-fruits and dried fruits 14,968 14,579Television and radio transmitters and apparatus for line telephony and line telegraphy 1,701 14,404Vegetable oils and fats 8,161 13,993

HESSEMineral oil products - 16,334Prefabricated chemicals, not mentioned elsewhere 15,149 10,455Articles of leather and leather clothes (excl. footwear) 9,387 9,490Motor cars and mobile homes 9,953 9,487Machinery and apparatus for electricity production, distribution and control 7,285 7,946Articles of rubber 4,491 6,282Basic pharmaceutical products 5,055 4,980Chassis, bodies, engines, parts and accessories for motor vehicles, etc. 2,114 4,579


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Pharmaceutical products 2,573 4,409Footwear 2,055 3,683

RHINELAND-PALATINATE Footwear 10,000 12,774Jewellery, goldsmith's or silversmith's wares 6,705 8,422Prefabricated chemicals, not mentioned elsewhere 8,209 7,133Articles of metal, not mentioned elsewhere 2,764 4,709Basic pharmaceutical products 1,335 4,571Unmanufactured tobacco and tobacco products 3,540 4,328Articles of leather and leather clothes (excl. footwear) 3,173 3,598Pharmaceutical products 1,265 3,461Bearings, gears, gearing and driving elements 1,630 3,071Pumps and compressors 1,205 2,936

SAARLANDFootwear 48 2,823Electric machinery, apparatus and appliances, not mentioned elsewhere 1,724 2,124Articles of plastics 223 1,589Tools and cutlery of base metals 531 713Chassis, bodies, engines, parts and accessories for motor vehicles, etc. 240 665Machinery and apparatus for electricity production, distribution and control 374 521Measuring and automatic control instruments and appliances 209 334Apparel of knitted or crocheted fabrics of cotton 521 333Pumps and compressors 97 290Bran, food waste for animal feed and other animal feedstuffs 160 258

INDIAN IMPORTS FROM GERMAN STATES OF NORTH RHINE-WESTPHALIA, HESSE, RHINELAND-PALATINATE AND SAARLAND DURING JANUARY-APRIL 2009 & 2010

Value in 1000 EURO INDIAN IMPORTS FROMJan-April

09Jan-April

10

NORTH RHINE-WESTPHALIAComplete factories 33,115 105,321Bearings, gears, gearing and driving elements 42,626 41,177Prefabricated chemicals, not mentioned elsewhere 28,823 35,902Plates and sheets of iron or steel 21,848 35,215Machinery for mining, quarrying and construction 28,307 30,311Plastics 20,715 29,136Machinery for textile, apparel and leather production 35,864 28,240Tubes of iron or steel 17,593 27,497Chassis, bodies, engines, parts and accessories for motor vehicles, etc. 7,204 27,264Machinery, not mentioned elsewhere 32,401 23,299

HESSEBasic pharmaceutical products 12,617 19,365


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Measuring and automatic control instruments and appliances 7,430 13,022Plastics 5,458 10,923Machinery and apparatus for electricity production, distribution and control 8,872 9,260Pharmaceutical products 7,730 8,417Machinery, not mentioned elsewhere 6,158 8,374End products, not mentioned elsewhere 3,409 8,228Prefabricated chemicals, not mentioned elsewhere 6,124 7,361Bearings, gears, gearing and driving elements 4,463 6,304Paints, varnishes and mastics 3,786 5,358

RHINELAND-PALATINATEPrefabricated chemicals, not mentioned elsewhere 10,332 16,211Machinery for mining, quarrying and construction 11,452 14,613Lorries and special purpose motor vehicles 864 10,380Chassis, bodies, engines, parts and accessories for motor vehicles, etc. 444 8,898Chemical end products, not mentioned elsewhere 3,123 8,374Pumps and compressors 18,001 7,286Pharmaceutical products 94 6,026Plastics 2,479 5,405Semi-products of aluminium 1,558 4,199Basic pharmaceutical products 6,531 3,680

SAARLANDPlates and sheets of iron or steel 15,170 14,463Motors and engines (excl. engines for agricultural tractors, aircraft and road vehicles) 1,699 8,106Machinery, not mentioned elsewhere 2,921 4,754Articles of plastics 1,655 3,027Wire of iron or steel 835 2,554Chassis, bodies, engines, parts and accessories for motor vehicles, etc. 540 2,405Bearings, gears, gearing and driving elements 603 2,017Pumps and compressors 355 1,764Machinery and apparatus for electricity production, distribution and control 2,074 1,222Lifting and handling equipment - 1,201


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Documents

CONSULATE GENERAL OF INDIA · Web viewValue in 1000 Euro Top 10 Items Total Imports NRW % share Hesse % share Rhine-Pal % share Saarl-and % share Total 4 states % share Apparel of