The trade relations between Republic of India and the Federal Republic of Germany have been dynamic due to strong and vibrant cooperation at the commercial, culture and at strategic fronts.

In 2007-2008, the Indo-German trade stood at 12.07 billion Euros and it is projected to cross 30 billion Euros in 2010.  No wonder, Germany has emerged as India’s largest trading partner.    

India and Germany relations date back to the time of pre-independence, when Hitler openly backed radical leader Subhashchandra Bose in forming the Indian National Army to fight the British.

At present, both countries have established joint research and development in the areas of energy, environment, coal and water technologies. Germany has been very forthcoming in terms of backing India in terms of education and cultural development. Institutions like say, Indian Institute of Technology, Madras have been formed in close collaboration with the German government in 1956. In fact Germany has been supporting in the growth and expansion of the institute in a major way.

German imports from India primarily consist of cotton garments and fabrics, leather and leather goods, silk fabrics, chemical and pharmaceutical products and garments and carpets and rugs as well as precious stones. India's chemical exports have been clocking strong growth in the past two years.

German exports to India principally comprise of machinery, chemicals and pharmaceuticals, electro technical goods, vehicles and iron and steel.

Road Ahead

Bilateral trade relations between India and Germany should be promoted for the following reasons

• Massive requirements for state-of-the-art technologies, to modernize and restructure Indian economy.
• Increase in demand for consumer goods to meet the rising demands of the Indian consumers.

The shift towards eco-friendly products leading to increased demand for environment friendly technology. 

Indian exports to Germany are getting more and more chic and diversified.

The creation of European Monetary Union may further propel the demand for Indian goods in the German markets. The European Union currently is India’s biggest trading partner.

The Indo-German Chamber of Commerce (IGCC)

The Indo-German Chamber of Commerce has more than 6000 members. IGCC has its Head Office in Mumbai and branch offices in New Delhi, Chennai, Calcutta, Bangalore and a liaison office in Hyderabad and Dusseldorf. The chamber has reportedly completed over 40 years in India in 1996.   

Other Economic Promotional Institutions

a) German Development Company (DEG)

The primary objective of DEG is to promote India as the best investment location and invite cooperation from German entrepreneurs for the same. Seminars and sector studies are organized to promote different sectors. DEG also lends advice to German and Indian entrepreneurs for joint ventures and long-term technical co-operation.   

b) Indo-German Export Promotion Project (IGEP)

The Indo-German Export Promotion Project is a joint undertaking of Ministry of Commerce in India and the Ministry of Economic Cooperation and Development in Germany. IGEP plays a key role in endorsing Indian exports to Germany and the European Union. The institution specializes in promoting Indian Exports to Germany and the European Union. What sets its apart is its special focus on small and medium –sized manufacturing companies in the private sector.    

4. German investments in India

Germany is one the top investing countries of India. German investment in Indian tripled with the onset of liberalization.