Post the economic reforms and liberalization of the Indian market in 1991, Germany has gone on to become one of India’s most significant trade and investment partners.
Cumulatively, Germany has invested over $13.19 bn in India between 2000 and 2021. Key areas of investments have been transportation, electrical equipment, metallurgical industries, services sector (particularly insurance), chemicals, construction activity, trading and automobiles. Over 1,600 Indo-German collaborations and 600 joint ventures are represented in the Indian marketplace.
India and Germany signed the Strategic Partnership in 2001, which has been further strengthened by the Intergovernmental Consultations (IGC) between the two Governments. The IGC allows for a comprehensive review of cooperation and a platform to identify fresh areas of engagement. The 5th IGC was held in New Delhi on 1st December 2019, wherein 17 cooperation agreements and MoUs were signed across various sectors.
Several institutionalized arrangements exist between India and Germany on bilateral and global issues, including Foreign Office Consultations, High Technology Partnership Group, High Defence Committee, Indo-German Energy Forum, Indo-German Environment Forum and Joint Working Groups in sectors such as skill development, automotive, agriculture, water and waste management.
Germany and India co-operate on the issue of UNSC expansion within the framework of G-4 and consult each other in G-20 on global issues such as climate change and sustainable development. There have been consultations on regional and international issues such as international cyber-security, disarmament & non-proliferation and export controls.
Germany is India’s largest trading partner in Europe. India was ranked 25th in Germany’s global trade in 2018. Bilateral trade during 2018-19 was valued at $24 bn. Some major Indian exports include machinery and mechanical appliances, textiles, and chemicals. Some major Indian imports include optical and medical instruments, machinery and mechanical appliances, vehicles, and accessories.
Germany is the 7th largest foreign direct investor in India since April 2000. German FDI into India during FY 2020-21 was to the tune of $667 mn. Germany’s cumulative FDI in India from April 2000 to March 2021 amounted to $13.19 bn.
A Fast Track Mechanism has been set up for German companies in India under the DPIIT to expedite resolution of issues. The Make in India Mittelstand (MIIM) Programme was launched in 2015 to facilitate the entry of German MSMEs. Currently, 135 MSMEs are being facilitated through MIIM Programme. Invest India is the implementation arm of the Fast Track Mechanism and facilitation partner for the MIIM program.
Cultural and academic exchanges form an integral part of Indo-German relations. German scholarly interest played a key role in introducing Indian art, culture, literature and philosophy to the wider world. Max Mueller was the first scholar of Indo-European languages who translated and published Upanishads and Rigveda.
German interest in the Indian philosophy and languages resulted in the first Chair of Indology at the University of Bonn in 1818. The Government of India has funded several rotating chairs of Indian studies in German Universities.
About 15,000 Indian students are pursuing various courses in Germany, while around 800 German students are studying in India. The German Academic Exchange Service (DAAD) facilitates joint research, training and exchange of young scientists/research scholars. Indo-German Partnership in Higher Education was signed between DAAD and UGC at the 3rd IGC in New Delhi in October 2015.
German auto-maker Webasto has invested INR 250 cores to set up a sunroofs manufacturing facility in Pune.
Birkenstock, the global German lifestyle brand with a heritage in iconic footwear, has launched its e-commerce ‘1774’ in India.
Bosch Automotive Aftermarket inaugurated one of the largest Bosch Car Service (BCS) facilities in Panchkula, Haryana, to expand its workshop chain network. There are about 250 Bosch multi-brand car service points in India.
German agrochemicals major Bayer has inaugurated a new Ethiprole manufacturing plant at its Vapi site in Gujarat, with an investment of INR 200 crore (24 million euros). The new facility will cater to domestic demand as well as exports across the Asia Pacific and Latin America.
German footwear major Von Wellx inaugurated two footwear units in Uttar Pradesh, aiming to produce 5 million pairs of shoes annually. The company will invest around INR 300 crore in phases in three projects in the state, generating around 10,000 jobs.
German medical tech company Siemens Healthineers is set to make its single-largest investment in India of INR 1,300 crore (EUR 160 million) over the next 5 years, as it sets up a new innovation hub in Bengaluru.
Bosch Home Appliances plans to invest over $ 112 mn in the Indian market in the next 3-4 years through expanding their product portfolio. The Company aims to focus on personalized solutions, brand building, strengthening technology centre, including a transformation from conventional to digital offerings.
German consumer electronics maker Blaupunkt plans to invest $ 300 mn in the Indian television industry, along with its Indian partner Trigur Electronics, on marketing and at Trigur's plant in Sonepat, Haryana.
German steel major ThyssenKrupp will produce cold-rolled grain oriented (CRGO) electrical steel for the first time in India. The Company is the sole manufacturer of CRGO in the Country presently.
Deutsche Bank, Germany’s largest lender by assets, has acquired Mumbai-based fintech startup Quantiguous Solutions that will enable it to provide an open banking platform to its corporate clients across the world. This is the first acquisition for DB in India.
Siemens has launched its digitization platform 'Mindsphere' in India, along with four application centres in Pune, Noida and Gurugram (two). India will be among the top five global markets for Siemens AG in the coming years, as the German conglomerate company is preparing to tap a $ 1.5 tn opportunity in India’s manufacturing sector.
Germany-based equipment manufacturer Liebherr has set up their first refrigerator manufacturing unit in Aurangabad, Maharashtra with an investment of $ 73 mn to manufacture refrigerators locally.
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The World's Most Innovative Investment Promotion Agency Award 2021 awarded by OCO Global
United Nations Conference on Trade and Development (UNCTAD) Investment Promotion Award 2020 for best practices in COVID response
Best Investment Project Award five years in a row - 2016 to 2020 at the Annual Investment Meeting (AIM) organized by the Ministry of Economy, UAE.
Great Place to Work Certification by GPTW Survey 2019
The UNCTAD Award 2018 for promoting investment in sustainable development
Great Place to Work Certification by GPTW Survey 2018
Investment Award 2016 from the Indian Ocean Rim Association (IORA)
United Nations Conference on Trade and Development (UNCTAD) Investment Promotion Award 2016 for excellence in partnering for investment promotion