New Delhi [India], October 25: Robert Habeck, the visiting Vice-Chancellor and Federal Minister for Economic Affairs and Climate Action of Germany, emphasized the importance of adjusting Germany's trade policies during his speech at the 18th Asia Pacific Conference of German Business in New Delhi. He underscored the need to diversify away from reliance on major partners like China and Russia.
Habeck stated, "We are in a very, very complex situation, and we have to reshape, recalibrate our economic success story in these days. Diversifying our trade policies and finding new partners is of utmost political and economic importance for Germany at this moment."
He acknowledged that growing skepticism and geopolitical tensions necessitate the diversification of trade relations, highlighting India's essential role in this transition. He remarked, "India is one of the most important partners here in this region and in the world. We cannot afford to ignore the possibility of an EU Free Trade Agreement, which is why I have a strong willingness to pursue this."
Additionally, he promoted Germany as an attractive destination for investment, stating, "While we discuss investments in India and the Asia Pacific region, investing in Germany offers the advantage of a single market."
Habeck pointed out that Germany has historically benefited from globalization through trade and energy, particularly with Russia and China, but the current global landscape has changed. "Germany has benefited from globalization, especially in trading and energy, purchasing energy from Russia and engaging in trade with China. However, the situation has become more complicated as we trade with China," he noted.
He continued, "China is our biggest trading partner, yet the relationship is increasingly imbalanced, and skepticism is growing between us. Germany and Europe find themselves in a challenging position."
Roland Busch, Chairman of the Asia Pacific Committee of German Business and CEO of Siemens, echoed Habeck's views, stating, "It starts with energy infrastructure, followed by manufacturing, and finally sectors like higher education and healthcare. Recently, significant investments have been made in India and the ASEAN region in energy and infrastructure."
He added, "The current focus is on expanding manufacturing and increasing local value, which is vital for emerging market countries to create more high-quality jobs. We need to build local ecosystems to support growth in high-end manufacturing, sustainable process industries, the semiconductor sector, healthcare, and green technologies."