India-Germany Bilateral relations
Germany is the largest economy of Europe and fifth largest in the world in terms of Purchasing Power Parity (PPP). Its highly skilled labour force, continuous advancement in technology and well thought out development planning has made it one of the leading developed economies of the world.
Bilateral relations between the India and Germany have been traditionally strong. India considers Germany as an important partner for economic ties who can contribute to India’s economic development. Germany on the other hand also sees India as a regional and aspiring global power, and a large market.
Trade in Engineering
Germany is India’s largest trading partner in Europe. It has consistently been among India’s top ten global partners and was the seventh largest trading partner in 2020-21. Merchandise trade between India and Germany was recorded at USD 21.8 billion in 2020-21. India’s engineering exports to Germany for 2020-21 was US$ 2.6 billion. India’s major engineering exports to Germany include Electric Machinery and Equipment, Iron and steel and its articles, Auto Components/Parts and Industrial Machinery among others. India’s exports of construction and earth moving machinery to Germany for 2020-21 stood at US$ 37.8 million.
Opportunity for Indian Engineering Industry
As our largest trading partner in Europe and 7th largest source of FDI, Germany offers substantial opportunity for Indian businesses, particularly in manufacturing Engineering sector. The potential level and ample scope is left for Indian exporters to explore the large market of Germany especially at a time when both India and Germany have been moving towards restoration of economic activities to the pre-COVID level or even better, leading to higher domestic demand and expansion of markets for different products.
