India-Germany Economic Relations


  • India’s position in the world underwent significant change in the last decade of 20th century. Germany saw the potential of new India and created an Agenda for Indo-German Partnership to strengthen the relations between the two countries.
  • To strengthen the economic relations both countries have acknowledged the need to facilitate bilateral trade through easy procedures and removal of non-trade barriers.
India-Germany FDI synopsis

Share of Germany in FDI Equity Inflows in India (as on December 2016)

Rank: Germany ranks 7th

Percentage share of total FDI inflows: 3%

Cumulative FDI Inflows from Japan: US$ 9.54 billion

  • There are more than 1600 Indo-German collaborations and over 600 Indo-German Joint Ventures in operation. A Fast-Track System for German companies has been set up inDepartment of Industrial Policy & Promotion(DIPP), as agreed between the two sides at the 3rd Inter-Governmental Consultations (IGC).
  • Indian investments in Germany have also shown an exceptional increase in the last few years. Indian corporate entities have invested over US$ 7 billion in Germany. There are more than 200 Indian companies operating in Germany.
  • Sectors of IT, automotive, pharma and biotech have received a chunk of Indian Investments. The penetration of Indian software companies in German market is growing and major Indian software providers like Infosys, WIPRO and TCS have operations in Germany.
  • Companies like Bharat Forge Limited, Ranbaxy, Piramal, Samtel, Hexaware Technologies, NIIT, Graphite India Limited, Hinduja Group, Dr. Reddy’s Laboratories, Biocon, Hindustan National Glass, Mahindra and others have either taken possession of German companies or started their own subsidiaries.
German Investment Inflow in the last few years
Year(April-March) From Germany(In US $ Millions) %age Share of Germany
2012-13 859.62 3.8
2013-14 1,038.42 4.3
2014-15 1,123.86 3.6


Share of top sectors attracting FDI Equity Inflows from Germany

(From April’14-March’15)

S.No. Sector Amount of FDI %of totalinflows
1. Automobile industry 231.9 20.6
2. Services sector 179.4 15.9
3. Construction (infrastructure) activities 175.6 15.6
4. Industrial machinery 69.6 6.2
5. Drugs & pharmaceuticals 69.3 6.2
6. Soaps, cosmetics & toilet preparations 58.3 6.2
7. Computer software & Hardware 51.0 4.5
8. Chemicals (other than fertilizers) 36.7 3.3
9. Miscellaneous industries 34.3 3.1
10. Electrical equipment 32.9 2.9
11. Scientific instruments 30.8 2.7
12. Consultancy Services 25.9 2.3
13. Metallurgical industries 19.8 1.8
14. Trading 18.9 1.7
15. Fermentation industries 16.8 1.5
16. Non-conventional energy 14.1 1.3
17. Railway related components 12.9 1.1
18. Ceramics 7.6 0.7
19. Construction Development 5.3 0.5
20. Textiles (incl dyed. printed) 5.1 0.4
Others 28.7 2.5
Total 1124.9 100
Details of top FDI inflows received from Germany
S. No. Name of Indian Company FDI Route Name of foreign collaborator
1. Apollo Energy Pvt. Ltd RBI DkyInil Health Holding
2. Bajaj Allianz LIC Ltd. RBI Allianz SE
3. Continental Automotive Components (India) RBI Continental Automotive GmbH
4. Daimler India Commercial Vehicles Pvt. Ltd RBI Daimler AG
5. Daimler India Commercial Vehicles Pvt Ltd RBI Daimler AG
6. Daimler Financial Services India Private RBI Daimler AG
7. Indian Oil Tanking Ltd. FIBP Oil Tanking India GmbH
8. John Deere (I) P. Ltd. RBI Deere and Co.
9. Lanxess India Pvt Ltd RBI Lanxess Deutschland GmbH
10. Man Force Trucks Pvt Ltd RBI Man Truck & Bus AG
11. Man Force Trucks Pvt Ltd RBI Volkswagan Financial Services AG
12. Metro Cash & Carry India Pvt. Ltd RBI Metro Cash& Carry International GmbH
13. Micro Inks Ltd FIBP MHM Holding GmbH
14. Neo Structo Construction Ltd RBI Bilfinger Berger Industrial Services GmbH
15. Saint Gobain Glass India Ltd FIBP Daimler AG
16. Siemens Ltd RBI Siemens Aktiengesellschaft
17. Sigma Freudenberg NOKPvt Ltd RBI Freudenberg SE
18. Triveni Polymers Pvt Ltd RBI GerresheimerGlas GmbH
List of Indian Companies in Germany

  • Amtek India
  • Bharat Forge group
  • Hindalco Industries( Aditya Birla Group)
  • Lupin Pharmaceuticals
  • Mahindra CIE Automotive Ltd.
  • SamvardhanaMotherson Group
  • Sona Group
  • Tata Consultancy Services
  • Tata Steel