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Chidambaram visiting Germany next month
August, 29th 2007
To address problems facing Indian companies

Mr P. Chidambaram

To allay the industry of its problems relating to trade with Germany, the Finance Minister, Mr P. Chidambaram, is visiting the European country next month.

According to industry sources, the Minister will discuss, among other things, the issue of VAT refund to the Indian companies operating in Germany. Currently, Indian companies in the European country do not get refund of VAT paid by them to the Government.

Other issues include registration problems of medicines exported by India to Germany. Sources say that registration of various dugs is a difficult and time-consuming exercise in Germany. The delay reduces the commercial life of the medicines.

Mr Chidambaram is also expected to take up provisions relating to chemical in goods exported by India. According to industry sources, the guidelines pertaining to chemicals in the products imported by Germany are very stringent and lack transparency.

Visa issue

Another issue that the Minister will discuss with the German authorities will be difficulty in getting visas for the spouses of the Indian workers going to Germany.

Another related issue will be the provision regarding refund of social security contributions by Indian professionals in Germany. Under the current provisions, professionals have to wait for two years after leaving Germany to be able to apply for the refund while the companies are not returned their contributions towards social security.

Mr Chidambaram will be accompanied by delegations from the FICCI and the CII.

His visit will be followed by a visit of Ms Angela Merkel, German Chancellor, to India towards the end of October. The visit from the Indian side will also be a precursor to the German Chancellors visit and will help in identifying the deliverables at the home turf during her visit.

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