“I believe 65 per cent of the German manufacturing companies already have a presence in India and another 30 per cent plan to come there,” the Prime Minister said.

Singh said this while inaugurating the Indo-German Business Summit. He subsequently left for Berlin to meet senior ministers in the German Government, including Foreign Minister Frank-Walter Steinmeier.

Yesterday, the Prime Minister, along with German Chancellor Angela Merkel, had inaugurated the Hannover Technology Fair marked by a stunning laser show and cultural performance showcasing India. The business summit will run parallel to the trade fair.

Later in the day, Commerce and Industry Minister Kamal Nath raised concerns about the increasing stringency of standards and complex rules and procedures in the European Union, which acted as non-tariff barriers (NTBs) to trade. Nath sought the support of Germany, India’s largest trading partner in Europe, to resolve the NTBs faced by Indian exporters in the EU.

Merkel was in agreement with Nath on the issue, saying, “Any attempt at protectionism should be staved off, be it in EU or Germany. We must allow investments from developing countries, including India.”

While appreciating the Indian economy’s rapid growth, Merkel felt it was only ‘open to some extent’. “India should open up its markets further,’’ Merkel said. She also stressed that both India and Germany must build on the agenda for energy security.

Merkel has accepted the Prime Minister’s invitation to visit India with a large business delegation next year. But some deals have already been signed on day one of the Fair, the largest being an agreement between Rajya Sabha MP Vijay Mallya’s Kingfisher Airlines and Airbus Industrie to purchase five A-340 aircraft at a cost of $1 billion. The delivery of the planes will begin in 2008 and Kingfisher intends to use them for flying to New York and San Francisco.

Indian Railways Board chairman J P Batra signed a Memorandum of Understanding with his counterpart from the German Railways (Deutsche Bahn), for cooperation in railway-related technologies and developments covering modernisation and servicing of rolling stock, signaling and telecommunications.