Dr. Angela Merkel, Chancellor of Germany, on her visit to India in May 2011, declared 2011-12 as the Year of Germany in India. The celebrations mark the completion of 60 years of diplomatic relations between the two nations and will be followed by celebration of Days of India in Germany in 2012-13. The two nations have over these 60 years shared a warm and close friendship and common commitment to democracy. Dr. Merkel during her visit discussed the robust bilateral relations between the two nations and emphasized the need for further deepening these ties.

In the last decade, Indo-German relations have intensified substantially. In 2001, the bilateral relationship between the two countries was elevated to strategic partnership. Following this development, cooperation between both the countries increased from strength to strength. With each passing year, new avenues are being identified for development and mutual co-operation.

The industries of both the nations hold each other in high regard and have had a mutually beneficial association. Indian businesses glean from German industry the importance of commitment to quality, the benefits of innovation and the wonders of precision technology. German companies have a strong presence in India and currently have over 600 active joint ventures with the Indian industry particularly in the areas like engineering, infrastructure, automotive, ICT, technical consultancy services and skills development. There is also increased activity by Indian industry in Germany. Investments in Germany by Indian firms are on the rise and have catapulted the economic relations between the nations into exciting times.

Germany is India’s largest trading partner in Europe and the seventh largest foreign investor in the Indian economy. It is also India’s second largest partner in technology collaborations. Traditionally this has been fuelled by India’s heavy demand for German goods, especially in the engineering and infrastructure sector.

The global economic crisis of 2009 did impact Indo-German trade, as the volumes dipped by 15% from what they were in 2008-2009. With India striving to develop into a world class economy and the German economy being on a growth path, trade volumes are on the rise.

The Confederation of Indian Industry has over the years helped to increase and sustain the interaction between Indian and German industry. Germany has actively participated in CII flagship events and sent large delegations to the International Engineering and Technology Fair and Auto Expo, which is Asia largest automotive exhibition amongst other exhibitions and event. CII also mounted a CEO’s delegation to Germany in September 2010 to participate in the Annual Meeting of the Federation of German Industries (BDI). The BDI conference had a special focus on SMEs and pre-dominance of family run businesses as these were two very important areas for both the economies. The delegation also participated in a panel discussion and interacted with over 300 German business leaders.

Dr. Merkel led a 23 member CEO delegation to India during her visit in May 2011. The delegation participated in a round table conference and discussed possible areas of collaboration such as technology transfers, infrastructure and skill development.

Indian and German bilateral partnership holds immense promise. Opportunities in trade and investment are emerging from both sides. The industries of the two countries are also seeking partnership to explore avenues in each other’s regions. Potential areas of collaboration are Infrastructure, Automotive, ICT, Textiles and Tourism.

India understands and realizes the importance of an economy supported by strong infrastructural resources. Over the last few years, huge investments have been made in the infrastructural sectors. The deficit however remains large and attracting investments is still a major focus. The sector is envisaged to require more than a trillion dollars of investment in the five year period of 2012-2017. Policy changes have now been effected, making the process fluid and transparent to attract investments, including from overseas. The sector provides lucrative opportunities for German companies, especially as they have a high level of expertise in construction, maintenance, precision technology and project management and partnerships. The sector also provides attractive opportunities in Public Private Partnership (PPP) ventures for large German corporations.

The Automotive industry has always remained one of the key sectors of collaboration between India and Germany. India’s growing need for mobility is an attractive area of investment for the German automotive industry. The Indian automotive sector is progressive and unique. Leading German automakers are innovating on interesting adaptations to cater to India’s huge automotive sector. Daimler’s USD 700million investment testifies the attractiveness of Indian Automotive sector. Germany’s OEM market and after service market is an attractive area for Indian companies. India also holds the advantage of having one of the largest pools of excellent human resource in terms of scientists, researchers, and technicians.

Two thirds of Indian organizations operating in Germany are in the IT sector. The German ICT market is the largest in the EU and the fourth largest in the world. The SME and the banking sectors of Germany provide huge scope of business for Indian IT companies. With the increase in use of IT enabled services, data security will always remain key issue of concern. With India being pegged as the largest exporter of IT enabled services and Germany taking up almost 20% of the EU’s ICT share, the two countries can collaborate towards tighter data security regimes. Almost all leading IT based organizations from India have presence in Germany. India and Germany have traditionally been strong partners in the Textile industry. Germany is the second largest importer and trader of textiles. Demand for textiles is significant across clothing, home and technical textiles. India fits into this by pitching in with home and clothing textiles along with cost effective and creative products. India stands to gain from Germany’s niche in R&D and technology within the sector.

India is committed to a green way of growth. It is making active efforts to reduce its carbon footprint and adopt cleaner technology and methods of operations across all sectors. India stands to gain immensely from Germany in fulfilling its commitment to a greener economy. Sustainable Green technology is a major strength of the German economy. Collaborations in this area are emerging fast and will have huge potential in the near future. It will also be an important area for technology and knowledge transfer.


Skill development is another traditional area of collaboration between India and Germany. Germany has for long, played an important role in India’s skill development. The fast evolving Indian economy will need skilled workforce equally across sectors. Collaborative Skill Development in thrust areas such as manufacturing and R&D would heighten the complementariness of the two nations.

CII has, over the years, worked extensively to deepen ties between Germany and the Indian Industry. It is engaging actively with its MoU partners and driving the industry’s agenda forward.

Our partnership with BDI has engendered high value for companies of both sides. CII is pleased to participate in this venture of Business Guide to Germany. We offer a range of connectivity services for German companies in India and would be delighted to provide tailored solutions to them for doing business in India.

CII looks forward to strengthening its interaction with BDI and with German industry for a mutually beneficial bilateral economic engagement.