Indo-German bilateral trade, which witnessed a decline in 2009, is likely to recover this year despite the ongoing crisis in the European Union.
Bilateral trade will surge due to the recovery in Indian markets and this will enable Germany to increase its exports to India. Germany is looking to increase its exports in sectors like machinery, electro-technical goods, aircraft, metals, chemicals, measurement & control systems and auto components.
Sudhir Vyas, Indian ambassador in Germany, said, ?We have fixed a target of 20 billion euros in bilateral trade between India and Germany by 2012. We are working towards the target.? Indo-German trade increased by 17% in the January-April period this year compared to the same period a year ago, Vyas said, adding, ?Although the growth numbers are mostly in favour of Germany, they reflect the resurgence in the Indian economy.?.
Talking to journalists in Berlin, Vyas said Indian exports to Germany rose by 0.44% y-o-y to 1.41 billion euros during the first three months of this year while its imports from Germany increased by a whopping 18.72% to 2.13 billion euros.
Bilateral trade witnessed a growth of 11% in 2008 to reach 13.40 billion euros, before declining by 2.75% to 13.09 billion euros in 2009. With the current uptrend in the Indian economy, Vyas said bilateral trade is expected to grow in the range of 17-18% this year.
The current crisis will not dampen the spirit of trade between India and Germany, Vyas said and added that Germany will help the EU come out of the crisis to a great extent. Germany is Europe?s most populated country and contributes 23% to EU?s budget. It is India?s biggest trading partner in continental Europe.
German investments in India have shown an increase in the past three years. Germany was the eighth-largest investor cumulatively for the period between January 2000 and February 2010. During this period, the cumulative foreign direct investment (FDI) from Germany to India touched 3383.42 million euros. As projected by the Indo-German Chamber of Commerce, $ 6 billion worth of investments from German companies are in the pipeline.
According to the Bundesbank, Indian FDI flows into Germany between 2004 and 2008 increased from 3 million euros to 33 million euros. The IT sector continues to be the best represented in terms of FDI. According to FDI markets, India has initiated 40 projects in Germany since 2003, of which 20 are in the IT sector. India is also increasing its significance as a trading partner for Germany, as it has climbed from the 26th to the 24th position while Germany is the eighth most important destination for Indian exports. India accounts for 0.7% of total German trade and ranks 5th among Asian exporters to Germany.
?The travel for the story has been sponsored by Robert Bosch Stiftung