India and Germany have enjoyed long-standing historic and cultural ties.

Nazi Germany supported Indian political leader Subhash Chandra Bose's bid for armed struggle against British colonial rule and helped organize the Indian National Army along with Japan. India was the first nation to end the state of war with Germany after the Second World War. [1] After a spell in Argentina, aircraft designer Kurt Tank, who worked for Focke-Wulf during World War II, moved to India. First he worked as Director of the Madras Institute of Technology, and later joined Hindustan Aeronautics, where he designed the Hindustan Marut fighter-bomber, the first military aircraft constructed in India. Tank left Hindustan Aeronautics in 1967 and by the 1970s had returned to live in Berlin. India maintained diplomatic relations with both West Germany and East Germany but supported their reunification in 1990.[1]

Development of bilateral ties

Germany has extensively supported education and cultural development in India. Germany helped establish the Indian Institute of Technology Madras after both governments signed an agreement in 1956 and increased its cooperation and supply of technology and resources over the decades to help expand the institution.[2][3] In 2008, both nations established the Indo-German Science and Technology Centre in New Delhi to promote joint research and development in energy, environment, coal and water technologies.[4][3] Germany is India's largest European trading partner and the 5th largest trade partner.[1][5] Current trade volume stands at 10.5 billion in 2006, 12.7 billion in 2007-08 and both nations see it increasing to 30 billion by 2010.[1][4][5][6] India and Germany enjoy strong commerce and cooperation in telecommunications, engineering, environmental technology, food processing, chemicals and pharmaceuticals.[1][5]

Strategic ties
In the 1990s, Germany condemned India's 1998 nuclear tests, but has since expanded its cooperation with India in fighting terrorism and conducting joint military exercises.[1][5] Germany has also supported India's waiver from the Nuclear Suppliers Group to trade nuclear materials and energy.[1] In 2008, the Indian navy and the German navy conducted joint exercises for the first time, following a defense cooperation agreement between the two nations signed in 2006.[5] India has so far launched seven German satellites into Polar orbits since 1999.

India-Germany bilateral trade to touch euro 20 billion in 2012

Sujay Mehdudia

Ruling out any kind of downswing in the current volume of trade due to the deep debt crisis that has hit the eurozone, India and Germany have set an ambitious target of euro 20 billion bilateral trade turnover by the end of 2012 with major German companies planning investments in India. With German economy withstanding the storm in the eurozone and the country playing a major role in resolving one of the worst financial woes faced by Europe since World War II, experts are of the view that India and Germany are well on course of achieving a major milestone of achieving the target of euro 20 billion by 2012. At present, trade between the two nations has gone past the euro 15.5 billion-mark in 2011 and the year is yet to conclude, preliminary figures suggest. No doubt eurozone debt crisis is going to slow down growth and a lot of uncertainty prevails, but this will not apply to the India-Germany bilateral trade as it is witnessing a robust growth, a senior Foreign Trade Ministry official said. Officials from the Foreign Trade Ministry office told visiting Indian journalists here that the achievement came at a time when India and Germany were commemorating 60 years of relations. Various cultural events, exhibitions, conferences on trade, infrastructure projects are being conducted in India during the next 15 months till November 2012. The events are being conducted in 13 cities across India. On the other hand, after going down in 2009, Indo-German bilateral trade touched a record euro 15 billion in 2010, after witnessing a drop in 2009, officials at the Foreign Trade Ministry said. From January to December, 2010, the total volume of bilateral trade increased by an outstanding 17 per cent as compared to a negative percentage in 2009. Germany is India's most important trading partner in the European Union, according to figures of the German Federal Statistical Office. Similarly, Indian exports to Germany in the past year rose 21.5 per cent to euro 6.2 billion. With 26 per cent of the total value, textiles (euro 1.5 billion) accounted for the largest share followed by chemical products with euro 585 million. Data processing, electronic and optical equipment came next with euro 579 million. The fourth and fifth spots were taken by machinery with euro 418 million and leather products with euro 396 million respectively. The volume of German exports to India increased 14.3 per cent to reach euro 9.2 billion as compared to a drop of 3.5 per cent and decline of 1.2 per cent respectively during the two previous years. The top German exports were machinery (euro 2.9 billion) with a 31 per cent share, chemical products and data processing (euro 1.2 billion), electronic and optical equipment sectors (euro 894 million). This was followed by exports of electric equipment and metals and vehicle parts. Prime Minister Manmohan Singh and the German Chancellor Angela Merkel have already laid the path for strengthening of the Indo-German trade relations. Companies such as chemical giant BASF, technological and power leader Siemens, and cutting edge technological leader for automotive and renewable energy Bosch are upbeat about India's growth and have already outlined plans for big investments in India during the next few years. Both the countries have also identified focus areas for cooperation, including those relating to education, research and nuclear physics.

Economic Relations between India and Germany

Indo- German Chamber of Commerce (IGCC) has eventually expanded into the largest foreign chamber of commerce and trade in India and has also become the largest German bi-national Chamber globally. In 2006 the IGGC celebrated its 50th year of trade and commerce relations. India also partnered with the Germans in the 2006 Hannover Fair, which is recognised as the worlds largest technology fair. The IGGC have set up a goal to achieve trade up to 20 billion Euros by 2012.

Indias overall Exports to Germany

The bilateral trade relations between India and Germany have remarkably increased over the years and both Indian and German firms have had their share of investment. Post recession period Indian exports to Germany have seen an incredible growth in 2010, recording a total increase of 21.5%. The figures of total exports have touched to Euro 6.2 billion.

Indian textile Exports to Germany The Indian Textile industry generally comprises of manufacturers, wholesalers, suppliers, and exporters of cotton textiles, handloom, woollen textiles etc. Germany is one of t he foremost importers of handmade fibre textile of India. Indian textile export to Germany resulted for the highest share and it amounted to Euro 1.5 billion in 2010. Indian IT Exports to Germany CeBIT 2011, Hannover Germany One of Indias prime trade facilitation organizations, Electronics and Computer Software Export Promotion Council (ESC) having more than 2,300 members took part in a grand way at the CeBIT held from March 1-5th 2011at Hannover, Germany. CeBIT is one of the best known international trade fair showcasing the technological process used all across the world. The main objective of the trade show was to help out the associate exporters to expand their business base globally. Users from industry, skilled trades, banks, services sector, government agencies, science and all passionate about technology were the key target groups. Roughly 20 Indian ICT companies participated at CeBIT under ESC banner. The mass participation of the Indian companies clearly indicated their increasing interests of investment in the EU region, with Germany being a prime target. ICT products as ERP, business process management, business intelligence, vertical market solutions, managed services, internet solutions, web content management, ecommerce, web design and technologies and many others were on display at the CeBIT. ESC has been a regular participant at the CeBIT since last many years. The Indian companies under ESC have expressed their interests in setting up joint ventures, having further marketing associations with the EU. The ESC has reportedly mentioned that there has been a remarkable rise in ICT exports from India to Germany.

INDIASOFT 2011 The ESC also hosted a large delegation from EU which participated at INDIASOFT 2011 on March 25-26. INDIASOFT is one of the biggest IT networking events as per global standards and this years venue for the event was Pune. It resulted in further strengthening the IT relations between India and EU and particularly with Germany. India has requested to Germany to remove technology trade restrictions For better trade relations, especially high-end technology trade with Germany, India has urged the European nation to ease trade restrictions and thus provide a suitable platform for both the countries to work on and gain mutual benefit. Indian Leather Export to Germany The Indian leather export industry eyes Germany as a prime target for exporting its leather items. 80 per cent of the country's total leather exports are mainly to the US and Europe with Germany accounting to 14 percent, to UK around 13 percent, the US about 9 percent. Indian Agro Exports to Germany Agricultural sector is the backbone of the rural Indian economy. Agro Exports to Germany from India has been a significant part of the total export of Indian agricultural items. The major Indian agricultural products exported to Germany are floricultural products, walnuts, dried and preserved vegetables, poultry products, processed meat, natural honey etc. Among the floricultural products, the chief share is of cut flowers. Cut flowers, flowering and ornamental plants, bulbs, tubers, rhizomes, chicory, orchids, mosses etc are the, main floricultural items exported from India. Germany holds a percentage of 5.41% in the floriculture export market of India.

Indian Glass Industry Trade with Germany Kolkata based Hindustan National Glass & Industries (HNG), has bought a German company, Agenda Glass, (AG) for an un-revealed amount. HNG is Indias largest maker of glass containers and has a total share of 55% in the market. The new company has been renamed as HNG Global GmbH. The deal was signed this May11, 2011. Saxony Anhalt will continue to be the main centre for glass production in Germany, as ensured by HNG. HNG can benefit from the "excellent conditions" available as high quality raw materials and modern infrastructure. Figures of Indo-German Export Market Overall the export industry is growing day by day and the figures indicate a rise in the trade between the two countries. The textile industry accounts for the highest trade with figures of export touching Euro 1.5 Billion. The second position is occupied by the chemical products which are worth about Euro 585 million. Data processing, electronic and optical equipment with 579 million come next to it. The fourth and fifth spots are taken by machinery with 418 million and leather products with 396 million.

German Exports to India

Germany, which is one of the worlds leading exporters stands on the fifth position globally as Indias trade associate. It is also the largest trading partner within the European Union. Germany shares a notable 11 per cent of the total business dealings between EU and India. German exports to India

grew to 8.2 billion, advancing at a rate of over 12 per cent in 2008. In 2009, this figure reduced by 1.2 percent to arrive at 8.1 billion. India Germany Tourism

German Tourism Board has launched shops in IndiaGerman National Tourist Board launched more tourism operators and travel agencies and special schemes for the Indian tourists willing to travel to Germany. Indo German Friendship Society Goa (IGSG) to organise fourth German Cultural week in Goa: The success of the third German Cultural Week held from December 8-12, 2010 has further inspired the organisers of the festival to come up with more lively events in December 2011. The festival will be celebrated from December7-11, 2011.

Germany and India trade relations decisively surging ahead 2009-12-23 00:00:00 Category - Business Services 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 Indias 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 Indias 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. Indian merchandise exports to Germany is an integral part of the total Indian exports to Germany. It is one of the significant sector of the conducive bilateral trade between Germany and India. Since 2004-05, bilateral trade between India and Germany bas growing at a record 20%

for the past 3 years and yet India holds just about 0.45% of total German trade and ranks 7th among the Asian countries exporting to Germany. Indian merchandise exports to Germany: Overview Indian merchandise exports to Germany comprise of textiles, chemicals, metal products, leather, electro technical products, pharmaceuticals, and machinery. Since 1964, polished diamonds also have been a major Indian export to Germany. There are other prospective growth areas for the purpose of Indian merchandise exports to Germany, like software, biotech, entertainment, medium range engineering goods, sports goods, toys, and Christmas decorations. The main merchandise exported to Germany from India are textiles. It has been recorded that there has been a remarkable growth in the export of textiles from 1962-1990. Initially, from 1962-1971, Indian export of textiles to Germany were at an annual average of just US$ 55 million which increased to an annual average of US$ 163 million during 1972-1981 and to US$ 255 million during 1982-1990. Not only textile yarn but even clothing forms a major part of the Indian merchandise exports to Germany, increasing from an annual average of US$ 96 million in 1972-1981 to US$ 282 million in 1982-1990 From 2002, there has been a shift in the Indian merchandise exports to Germany from textiles to machinery, which at present comprises nearly one-third of the total Indian exports to Germany. The export of leather goods has also exhibited a fair amount of growth from an annual average of US $34 million in 1962-1971, to US$ 86 million in 1982-1990. In 2001, another item of Indian merchandise exports to Germany - engineering goods was assessed to be 280 million. Hindrances regarding Indian Merchandise Exports to Germany There had been some set backs regarding the flow of the Indian merchandise exports to Germany like:

The European Union anti-dumping and other punitive actions Denial of market access Problems regarding the visa regulations and work permits Obstacles on employment and labor laws Problems on taxation regulations and special regulations

Indo German Chamber of Commerce The prospects of Indian merchandise exports to Germany is promoted under the vigilance of the Indo German Chamber of Commerce which has above 7000 members and is the largest bi-national German Chamber of Commerce abroad.

Indian IT Exports to Germany is the upcoming profitable venture between the two countries, India and Germany. There exists active cooperation in the field of economy with the celebration of the 500 years of the establishment of Indo-German trade relations in the year 2005.

Indian IT Exports to Germany: Overview In the year 2000-01, Indian IT Exports to Germany registered a growth of 48 per cent amounting to $235 million. In the previous year, India's computer software and services export to Germany amounted to $160 million. In terms of Indian IT Exports to Germany, the latter nation is the third largest destination. An Electronics and Computer Software Export Promotion Council in order to increase the scope for Indian software exports in Germany, sent a delegation in the Cebit 2002 show that took place in Hannover in 2002. Since then the Indian IT Exports to Germany gained further impetus. The Indian IT Exports to Germany has started after exporting to the US market, with the German IT services market worth as 26.5 billion Euros. The Indian software and services firms have started looking beyond their domestic boundaries to the European countries for further growth. There exists huge opportunity for them in Germany as this European country accounts for only 2.8 percent of Indias software exports. One of the software companies such as Hexaware have been quick to grab this opportunity. In the first half of 2004, of the 25 percent revenues from the European market 15 to 20 percent was contributed by the German unit of the Hexaware. At present, the clients of Hexaware are like Citibank, Lufthansa Systems and Deutsche Leasing in Germany. Products under Indian IT Exports to Germany: India got a platform to display its huge potential in the German market as one of the highly competitive onsite provider and supplier of technology. Moreover India is also an outsourcing destination and a powerful center for research and development. Not only in terms of providing computer software and services export to the foreign countries, India is also gaining importance in newer services like packaged software implementation, systems integration, network infrastructure management, and IT consulting. Factors facilitating the growth of Indian IT Exports to Germany: The factors facilitating the growth of Indian IT Exports to Germany are like the increased specialization, availability of a large section of low cost, but highly skilled, educated and fluent Englishspeaking workers for the development of the IT sectors in India. However, on the other hand, the rise in demand from foreign consumers interested in India's service exports and due to those foreign countries looking to outsource their operations the Indian software firms flourished. The recent rise in the Indian IT Exports to Germany is due to some benefits as these exports do not require the purchase of hardware or software by the Indian company or the provision of any significant technology infrastructure within the country. Moreover, since the onsite exports are based on links with foreign collaborators, they do not require that standard of marketing and financing as competition within the open market would.

German Exports to India is an integral part of the bilateral economic relations between the two nations, India and Germany. There exists an intensive co-operation in the field of economy and the year 2005 witnessed the celebration of the 500 years of the establishment of Indo-German trade relations. After US, UK and Japan, Germany is India's fourth largest trading partner with about 5% of Indian international trade accounting to 4.94 billion Euro in total.

German Exports to India: overview The Indo-German trade volume has increased by 180% from 2,7 Billion EUR in 1990 to 7,6 Billion EUR in 2005, with the German Exports to India have been recorded to have increased by almost 135%. The total volume of the Indo-German trade increased by 22% in 2005 with the amount of German Exports to India increasing by 28% to record 4,2 Billion EUR. In the year 2006, the Indo-German trade increased by 39% with the German Exports to India increasing by 52% to record 6,3 Billion EUR. Factors facilitating German Exports to IndiaThe German Exports to India is facilitated due to the liberalization policies of India along with her democratic form of government, a well defined political system and legal framework, efficient entrepreneurs, talented engineers and world class scientists, all of these ensuring lasting business opportunities for the foreign countries. German Exports to India has been encouraged with India sourcing less raw materials, semi-finished goods, and primary products and on the other hand it had been importing finished goods from Germany. Items of German Exports to India: Important items of German Exports to India are like machinery, electro technology as well as plants and metal products followed by aircraft, measurement and control equipment, plastics and plastic products, chemicals and pharmaceuticals and automobile products and components. Of these machinery exports to India comprises one third share of total German Exports to India. German Foreign investments Exports to India: India is a lucrative center for foreign investors and in terms of foreign investments, German Exports to India in total from 1991 to December 2005 has been less than one and a half billion dollars. At present there are more than 600 German companies operating in India and a robust German export of investments to India have been in practice. German exports to India is not only important in terms of goods exported by Germany, but its significance lies in the high exports accompanied by large flows of investment and technology to India. The best example is the Germany's first and biggest aid project, the steel plant at Rourkela, in India. Since the post liberalization era in India the German exports to India has been boosted for an increase in the new investment and technical cooperation projects. Centers regulating the German Exports to India: The Indo German Chamber of Commerce and Industry is the major instrument in the promotion of Indo-German trade relations . Another significant center is the German Office for Foreign Trade with regular market studies on important economic developments in India. It assists the German investors in researching the investment opportunities in India. However, still German Exports to India have not yet reached any significant level as even as per recorded in 2006, less than one percent of German foreign trade is exchanged with India while Germany in terms of her worldwide export volume ranks as the first exporter of the world.

ndian exports to Germany have shown a considerable growth since the last two decades with the export items ranging from textiles to leather goods to IT solutions etc.

Overview Indian Exports to Germany

Trade relations (http://business.mapsofindia.com/trade-relations/) between the two nations have increased to a remarkable extent and have recorded a positive growth over the last couple of years. Figures as of 2009, show that India is on 28th position on the list of sourcing countries for Germany and is ranked 27th among the main destinations for German exports. Post to the global recession, there has been an increase in the exports from India to Germany with the figures touching to 21.5% and the total exports amounting to Euro 6.2 billion.

Figures of Indo-German Export Market

There is a growing trend in the bilateral trade between the two nations and the export industry has registered an incredible growth. Figures of export for the textile industry (http://business.mapsofindia.com/india-industry/) touched Euro 1.5 billion. Export of chemicals occupied the second position with statistics showing export worth about Euro 585 million. The next spot is taken by data processing, electronic and optical equipment where export reached Euro 579 million. Machinery and leather exports occupied the fourth and fifth positions with export figures worth Euro 418 million and Euro 396 million respectively. Products exported to Germany

Indian exports to Germany from textiles, to IT solutions, leather, agricultural produce, glass materials etc. Leather Exports to Germany

Leather accessories occupy an important part of the Leather Industry in India and the Germany is one of the prime destinations for export of leather goods from India. Germany accounts to about 14% of the export market of the items of leather from India. Textile Exports to Germany

The Indian textile industry has shown a remarkable growth over the years and has more than four million handlooms. The sector is responsible for 14% of the over all industrial output and is on the

rise in the global textile sector. It generally consists of suppliers, manufacturers, exporters of textiles of cotton, handloom, woollen goods etc. Germany is one of the front runners when it comes to import of handmade Indian fibre textile. Germany resulted for the highest share of the Indian textile export market as indicated by the figures which reached to Euro 1.5 billion as of 2010. Agricultural Exports to Germany

The agro products exported to Germany from India are listed below: Floriculture Walnuts Dried and Preserved vegetables Poultry products Processed meat Guar Gum Natural Honey IT Exports to Germany Indian companies (http://business.mapsofindia.com/india-company/) are prime outsourcing firms and display a huge potential in the IT export market. Germany is a prime destination in the export market for India providing technology solutions. India is a powerful center for research and development and also gives computer software service export, network infrastructure management, IT consulting. Indian Glass Trade with Germany

Agenda Glass AG, a German based glass manufacturing industry was bought recently by Kolkata based Hindusthan National Glass (http://business.mapsofindia.com/indiacompany/h/hindustan-national-glass.html) & Industries (HNG), for an undisclosed amount. HNG Global GmbH is the name of the new venture.