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German investment in India doubles in 2005-06

Written by: Staff
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New Delhi, Apr 14: German Investment in India almost doubled during the period April to January in 2005-06 and stood at 286 million dollars as compared to 145 million dollars in the financial year 2004-05.

''Germany's investment in India is reaching new heights,'' said Ajay Singha, Deputy Director General, Indo-German Chamber of Commerce (IGCC) here.

In the past couple of years, the German companies have reaffirmed their faith in the Indian market and are investing money in setting up their manufacturing base, enhancing their presence and opening new ventures in India, Mr Singha said.

Citing some examples, he mentioned that the German Car maker BMW is setting up its manufacturing base in Chennai with a capacity to churn out 1,700 cars annually on a one-shift. India is the second country after Thailand where BMW is setting up its own subsidiary.

The German auto ancillary giant, Bosch, is keen on enhancing its presence and planning an investment close to Rs 1,000 crore in India.

A clutch of German companies are evaluating West Bengal as a business destination for ship and shipyard builders, added Mr Singha.

Even the Indo-German companies in India have fared very well.

Infact, some of them have out-performed their German parent companies.

There are about 24 Indo-German companies listed in the Indian stock market. The share price performance of these companies has recorded remarkable figures. This is a reflection of the fact that the Indo-German collaboration companies have integrated well in the Indian market and have become important players in their areas of operation.

The best performing companies include Siemens Ltd, MICO&Goetze (India).

Talking about Indian investment in Germany, Mr Singha said, ''It's clear that Indian companies are making much more strenuous efforts to internationalise and they are also paying a lot more attention to Europe. They are taking much more interest in Europe and particularly Germany.'' Dr Reddy's Laboratories acquisition of the German company, Betapharm for 480 million Euro, is the biggest acquisition by an Indian drug firm. Sundram Fasteners has acquired German-based Peiner Umformtechnik for 13 million Euro. The acquisition is subject to the approval of government authorities under German Cartel Regulations.

Similarly, the Indo-German bilateral trade increased in the year 2005. The bilateral trade increased by 21.6 per cent and stands at 7.6 billion EUR (9.1 billion dollars).

Indian exports to Germany increased by 14 per cent to reach 3.4 billion EUR, whereas German exports to India grew an impressive 27.7 per cent reaching 4.2 billion EUR. The trade balance between the two countries recorded 805 million EUR in Germany's favour.

Acknowledging the success of Indo-German trade, Mr Singha said there have been at least two major German delegations to India every month, the recent one being the Saarland&Lower Saxony delegations this month followed by a Bavarian delegation in end-April. And, of course, India's participation with 10,000 sq mts as the Partner country at the Hannover Fair, the largest industrial fair in the world, to be this month, will trigger the Indo-German economic relations, Mr Singha hoped.

UNI

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