Market Overview India and Germany: Made for each other!
Prime Minister Narendra Modi recently met with German Chancellor Angela Merkel in Berlin, and we take a brief look at the discussions and an overview of Indo-German relations.
The Indian prime Minister, Narendra Modi was welcomed with pomp, a guard of honour and a German Military band playing the Indian National Anthem as he attended the 4th India- Germany Intergovernmental Consultations (IGC) in Berlin last week. The fourth of its kind, the IGC was set up to strengthen and review the co-operation of the two countries in various fields. India is in fact one of the select group of countries with whom Germany has such a dialogue mechanism.
India Germany trade and "Make in India Mittelstand"
India and Germany have always been important trade partners – in fact Germany is India’s largest partner in the European Union and ranks in global partners. Germany is also a leading source of Foreign Direct Investment (FDI) into the country, with an estimated two billion US $ worth of investment in the past fiscal years. There are also more than 1600 German companies currently doing business in India. Key exports include electro technology, machines pharma and auto components while key imports encompass medical technology, machine tools, measurement and control equipment, to name a select few.
In September 2015, the two countries had together launched the ‘Make in India Mittelstand” (MIIM) program. This program was aimed at aiding and facilitating German SME’s to carry out business in India. A total of 73 German SME’s have currently already been set up through this program.
Made for each other!
During the meeting in Berlin, Chancellor Merkel emphasized India’s role as a reliable partner in many fields of common interest. “Germany will always find India a powerful, prepared and capable partner,” said she.
Prime Minister Modi stated, “India and Germany are made for each other! A quantum jump in economic relations can be seen between India and Germany and an outcome oriented momentum can be seen building.”
The two leaders signed several MOU’s and trade agreements and highlighted skills development, especially in the field of manufacturing, as a key area of co-operation. These MOU’s and agreements include in areas such as cyber security, development initiatives, sustainable urban development, and digitalization.
Both leaders underlined their determination to ease bilateral trade and investment through continued meetings and consultations.