Indian investments in Germany
In tune with the growing Indian investments abroad, Germany is rapidly becoming a major focal point for Indian Multinational Enterprises (MNEs). Early Indian investments can be traced back to mid-1960s. Between 2000 and 2007, 84 greenfield Indian investments were monitored in Germany. Apart from this, Indian companies were involved in at least 55 mergers and acquisitions deals in Germany during the same period. Germany averaged third behind USA and UK as target market for Indian investments. India is the single largest source of FDI projects from emerging countries in Germany.
In 2008 alone, Indian firms invested an estimated amount of $1.8 billion in Germany, up from $825 million in 2007 and $850 million in 2006. By August 2010, Indian FDI stock in Germany had reached $4.1 billion, which seems to have surpassed German FDI stock in India. There are 134 Indian MNEs in Germany. Information and Communication technology, automobile sector, Pharma and Biotech and manufacturing are significant areas of Indian investments. The state of Hesse has attracted the highest number of Indian subsidiaries (29 per cent) followed by North-Rhein Westphalia, Bavaria and Baden Württemberg. Presence of industry cluster, proximity to customer, availability of skilled labour, R&D facilities are among the main reasons for choosing Germany for investments.
Karnataka and Maharashtra are the most important source regions of Indian FDI in Germany (33 per cent each), followed by Delhi at 20 per cent and Tamil Nadu at 15 per cent.
Last Updated: Aug 2011
