Post the economic reforms of 1991 and the liberalization of the Indian market, Germany has gone on to become one of India’s most significant trade and investment partners.
Cumulatively, Germany has invested over $ 11.3 bn in India between 2000 and 2018. 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 a Strategic Partnership in 2000, 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 4th IGC was held in Berlin on 30th May 2017, wherein 12 cooperation documents 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 24th in Germany's global trade in 2016. Bilateral trade during 2017-18 was valued at $ 22 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, and vehicles and accessories.
Germany is the 7th largest foreign direct investor in India since January 2000. German FDI into India during 2017-18 was to the tune of $ 1.1 bn. Germany's cumulative FDI in India from April 2000 until September 2018 amounted to $ 11.3 bn. India is the 6th largest recipient of FDI from Germany.
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, 123 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 14,000 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.
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.
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.
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.
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.
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