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|
Share of top sectors attracting FDI Equity Inflows from Germany
|S.No.||Sector||Amount of FDI||%of totalinflows|
|3.||Construction (infrastructure) activities||175.6||15.6|
|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|
|17.||Railway related components||12.9||1.1|
|20.||Textiles (incl dyed. printed)||5.1||0.4|
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