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Two Decades Dedicated to India's Export Development |
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The journey began in early 1986 when the then Indian Prime Minister Rajiv Gandhi
and German Chancellor Helmut Kohl decided to take immediate measures
to reduce the bilateral trade gap between the two countries. The
fact finding mission visited India in 1987. After discussions with
the industry, associations, experts and government officials the
mission recommended to set-up a project whose objective would be to
increase India's exports to Germany and subsequently to reduce the
trade gap. This gave birth to the Indo-German Export Promotion
Project of the GTZ, better known as IGEP.
Keeping in view India's comparative advantages and the demand in the
target markets, particular emphasis was given to the traditional and
semi-traditional sectors. The organization of a workshop on export
possibilities to Germany organized at Techno-Germa, an unprecedented
German industry exhibition, held in New Delhi in March 1988 turned
out to be a great opportunity, and the first platform at which IGEP
made its debut in India. Since then the project has never looked
back. Today, it exists as IGEP foundation sponsored by Ministry of Commerce, India.
After working hard for a couple of years in the more traditional
sectors the project took technical sectors into its kitty. In the
initial years the focus was to strongly promote Indian exports to
Germany. Due to a generally positive economic development the
results were evident in just three years. India had a trade deficit
for forty years, 1991 brought the first surplus for India.
Over the two decade the project has also diversified its activities. It
has graduated from an "Export Promotion Project" to
"Economic Promotion Programme" especially for the private
sector. IGEP is instrumental in bringing many big names like
Otto, Quelle, Karstadt, Deichmann, Skoda, Digisound among others to
India. It has been instrumental in more than fifteen joint ventures
across various industry sectors. Rugmark, a label indicating carpets
without illegal child labour, the brain child of the project, is one
of the best available examples of trade promotion and development
assistance with corporate social responsibility and modern business
ethics. The German Parliament as well as the President Johannes Rau
acknowledged its remarkable success.
A wide variety of services are provided by IGEP. From working
with the private sector companies with short and medium term
activities targeted at directly enhancing exports from India, it
graduated to activities with a long term perspective with a view to
enabling the country's long term competitiveness to be established
and improved in export markets. When IGEP started working in
the leather sector the industry exported primarily shoe uppers. It
had to import many components, soles and linings to manufacture full
shoes. IGEP realized the fact that until the industry integrates
vertically it would not be possible to sustain in the long run
without value addition and earn more. Therefore it brought the first
joint venture in the form of Kurt O. John for manufacturing shoe
components. Then came HWS GmbH to manufacture soles and Wilhelm
Textiles for shoe linings. Taking a proactive action the project
launched systematic campaigns for critical issues like the bans of
PCP (penta chloro phenol) and azo dyes and setting up of testing
laboratories to avoid setbacks for Indian exports.
IGEP constantly strived to ensure a conducive framework in
co-operation with business institutions and Government departments
helping trade and industry cope with trade related regulations,
norms and standards in Germany and other EU countries. This includes
tariff and non-tariff barriers as well as social and ecological
regulations.
Already during the first years it was realized that a one-way
traffic would not suffice the purpose in the long run. So it started working on Indian investments in Germany. Long
before the "Green Card" scheme for the IT professionals
and software industry looking towards Europe, IGEP persuaded
Indian software companies to start up their operations in Germany.
This was not only limited to the software sector. Till now IGEP has helped more than a dozen companies including Infosys
Technologies, Wipro, Luxor, Hannung Toys to start their German
operations. |
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