Mumbai, Apr 11: Europe is becoming a critical market for Indian companies for a range of industries and Germany in particular is one of the most lucrative sources of potential business, German speakers at the release of a KPMG report here said.
Finding the right location in Europe is one of the key challenges Indian companies face. With its strategically favorable position, Eastern Germany is an exceptional investment location, German Federal Ministry of Transport, Building and Urban Affairs Deputy Minister Dr Engelbert Luetke Daldrup stressed. Initially, majority of the Indian foreign direct investment (FDI) was focused on the USA and the UK, but now also become other markets have more attractive for Indian FDI, especially in the industrial countries of Western Europe, the report.
KPMG director (advisory services) Andreas Dressler said, ''the rapid international growth of Indian companies means they will need to expand their physical presence to support new business in different countries and regions.'' India's exports to Germany rose in 2006 by 22.9 per cent to euro 4.2 billion. In addition to traditional export goods such as textiles, leather goods, shoes and foodstuffs, exports to Germany included chemical products, iron and motor vehicles.
Eastern German industries with investment potential for Indian companies include the automotive supplier industry, mechanical engineering, engineering services, microelectronics, renewable energies, biotechnology, chemicals and pharma, and service centers,the report said.