India must be on table when new rules are framed: Germany

India must be on table when new rules are framed: Germany

New Delhi: In the backdrop of the global meltdown, Germany has pitched for greater say for India and other emerging economies in revamping international financial structures to help avert repetition of such crisis.

German Ambassador Bernd Muetzelburg said that BRIC states like — Brazil, Russia, India and China — have become important economic players and it was important to give them more say in shaping of roles for economic globalisation.

“Country like India must be at the table when new rules are being devised," he said adding: “If you want to grow in a dynamic way these days, I think you need to partner with India and not just in terms of trade but also in terms of investment," said the envoy, whose country has already gone into recession officially.

“Nowadays in our globalised world where the BRIC states have for example become so important also as major economic players, it is obviously important to give them more of a say, more influence in the shaping of the roles for economic globalisation," the envoy said.

Observing that emerging economies like India and China will continue to grow, Muetzelburg said that the fundamentals of Indian economy are very strong and the country will be able to ‘reinvigorate’ its markets soon.

Germany’s economy, considered Europe’s biggest, has slipped into recession. Its economy has been whacked by the falling export demand and almost every sector, including the banking and automobile sector, of the country’s economy is feeling the pinch of the crisis.

The Ambassador’s comments came ahead of the visit of the German Foreign Minister Frank-Walter Steinmeier here during which he is expected to discuss the global financial crisis and other related issues with External Affairs Minister Pranab Mukherjee.

Noting that there was a need for certain commonly accepted rules and supervision of the financial markets, Muetzelburg said that India and Germany could join hands in revamping the structures of the financial markets.

“I think we have really quite a bit in common. We have similar points of departure, we have similar values, similar aspirations. It starts really with the fact that we have always believed in sober management of financial affairs. We have never believed in the fact that markets would regulate everything," he added.

The Ambassador said China and India are huge markets which will continue to grow.

“They (India and China) will also be affected by the economic crisis which we have now. Everybody will be harmed when the demand for example in major economies is suddenly slackening," he said.

“But at the end of the day I think the fundamentals for example in countries like India are so strong that after this dent India will be able to reinvigorate its own markets and productions very very fast," he said.

Asked whether Germany supports India’s stand need for reform of the financial institutions like World Bank and IMF, Muetzelburg said that Germany has similar views on the issue.