“India is Asia's Silicon Valley,” declared German chancellor Angela Merkel in Bengaluru today. Addressing an Indo-German summit hosted by Indian IT association Nasscom in association with Fraunhofer called ‘Digitizing Tomorrow Together’, she said “India and Germany share similar demographic challenges. You have huge talent and we have shortages of skilled talent. We would like to partner with India in skill development.”

Merkel said “India is competitive and its strength is IT. We are looking at partnerships in railways, infrastructure, energy mobility and training.”

Prime minister Narendra Modi, who also spoke at the event said “we are committed to creating favourable conditions for business and industry. We have fast tracked approvals and clearances for industry and infrastructure. FDI inflows have gone up by 40 per cent this fiscal year.” He said that India sailing in the right direction but cannot be complacent.

The two leaders visited German automotive major Bosch's facility for a firsthand view of its operations in India.

Both the leaders also interacted with top executives of German firms operating in India, including Bengaluru, and exchanged views on how to help the government boost its 'Make in India' and 'Digital India' initiatives for creating jobs and promote exports. They interacted with students and received a 'Make in India' lion model made by apprentices at the facility.

Other points touched by Modi at the summit are:          

We have expedited regulatory clearances including security and environmental clearance.

Across the board we have increased the validity period of Industrial licences.

We have introduced the GST Bill in parliament; we are hopeful to roll it out in 2016.

India is committed to protecting Intellectual Property Rights Rights of all innovators and entrepreneurs.

India is now at 9th place on UNCTAD's ranking of investment attractiveness and jumped 16 places on WEF's global competitiveness index.

The government is setting up an india investment and infrastructure fund, targeting Rs. 20,000 crore annually.

We have already assured business that there will be no retrospective tax.

We have good cooperation with Germany and it is an important partnership. However, it is not fully utilised and is below potential.

At a time of global slowdown, india represents a bright spot for investments and opportunity

Talented Indians are not looking for highly paid job. They want to start on ventures.

Never before was India so well prepared to absorb talent, technology and investment from outside. In just 15 months, we have restored India's position.

To enhance the flow of foreign investments we have liberalized the FDI regime.

Transparent auction and allocation of spectrum and key resources have given a level playing field.

We need to provide a huge push to manufacturing. That's why we launched - Make in India.

We have started the Start Up India Campaign. India is on the threshold of an IT revolution.

Full PM's speech: click here