Trends in India
India: Spotlight on Indo-German trade
Indo German trade in the engineering sector
In 2014, the trade between India and Germany declined normally by 0.87% to €15.96 bn (₹11,1720 crore) from a figure of nearly €16.10 bn in 2013. Indian imports from Germany experienced decline of 2.94% over the previous year and amounted to €8.92 bn (₹62,440 crore).
The exports from India to Germany attained a value of €7.03 bn (₹49,210 crore) in 2014. This was a slight increase of 1.74% as compared to the year 2013.
In 2014, the total import of machinery from Germany reached a volume of €2.54 bn (₹17,815 crore). This was a decrease by 8% compared with the same period of time in the previous year.
In 2014, among the machinery sectors, major demand of German equipment was for:
- power transmission (10.2%),
- compressors & air vacuum technology (7.6%),
- textile machinery (6.9%),
- material handling (5.9%),
- machine tools (5.8%),
- printing and paper technology (4.9%) and
- valves (4.7%) and air handling (4.5%).
There are other sectors such as food processing & packaging, plastics & rubber, process, construction and building material machinery which are growing steadily in India.
In 2014 out of approximately €16.7 bn (₹117,012 crore) of machinery imported by India, Germany had a share of around 15.4%, marginally behind China (24.3%) and ahead of Japan (10.3%) and USA (8.7%).
Maharashtra with around 39% share of German investments remains to be the most attractive destination for German investments in India. In the last four to five years, Pune has become the hotbed for new German investments. Karnataka and Gujarat are other important destinations.