There is much that connects India and Germany. Both are pioneers of democracy and share a passion for liberal thought, ingenuity and social inclusivity. The land of Beethoven, Karl Marx, Nietzsche and Schopenhauer is distinguished for the pursuit of excellence in automotive design, engineering, electronics, culture and the arts. Just as Indians are mesmerized by Germany’s open-air concerts, exhibitions, architecture and heritage walks, Bollywood is one of India’s biggest cultural exports to the EU country. Traditional medicine practices attract people from both countries. There are agreements between Germany and India for the promotion of Ayurveda, Yoga and Naturopathy, Unani, Siddha and Homeopathy (AYUSH). According to a study by the market research institute Gesellschaft für Konsumforschung, there are more than 3 million yoga practitioners in Germany.
In order to appreciate the brand essence of Germany, we need to understand what has gone into creating a leadership position. Plagued by two world wars, it was Germany’s resilience and a work-focused culture that kept it in the global spotlight. To bounce back from the Covid disruptions, aspirations will need to be coupled with resilience, and cooperation between the two countries could open up new revenue streams and spur economic recovery.
Although India and Germany have a trade history of more than 500 years, this year marks 66 years of AHK Indian, the Indo-German Chamber of Commerce (IGCC) and we look forward to new ways of enhancing cooperation between the two. More than 1,800 German companies have business links with India, most of which have subsidiaries or joint ventures. Germany has been the 7th largest foreign direct investor in India since January 2000. From April 2000 to September 2021, German FDI in India stood at $13.4 billion. More than 1,600 Indo-German collaborations and over 600 Indo-German joint ventures are in operation. German firms have created hundreds of thousands of employment opportunities in India. Around 565 Indian companies are in Germany and they have added to its growth story.
Despite the pandemic, Indo-German trade grew by 19% in the first 11 months of 2021 compared to 2020. Germany is the sixth largest trading partner of India. Important Indian exports to Germany include chemicals, textiles, apparel and machinery. Important German imports to India include machinery, vehicles and chemicals. Bilateral relations are gaining momentum in almost every field.
Prime Minister Narendra Modi and German Chancellor Olaf Scholz have sought to deepen ties. The two countries have agreements on metros, Namami Gange, green transmission lines, smart cities, high speed railways and solar rooftop projects. The two leaders have agreed to diversify bilateral cooperation and focus on cooperation for climate action and green energy. The ‘Indo-Pacific Guidelines’ adopted by the German government in September 2020 highlights the importance of the relationship, which encompasses various avenues from security to open trade and stability.
Technical expertise has always been a hallmark of German companies, with top brands such as Mercedes-Benz, Volkswagen, BMW, Bosch and Siemens. Both countries are ready to pursue cutting edge innovation. The High Technology Partnership Group plays a major role in developing international supply chains and promoting cyber security, both of which are critical to growth.
At IGCC, we work closely with embassies and general consulates, as well as other government entities such as the Federal Corporation for International Cooperation (GIZ) and German Trade and Invest (GTAI), to strengthen bilateral ties. Germany is looking for skilled migration and this is a huge field of opportunities for Indians. IGCC helps firms to identify and train talent. Various programs have been established to facilitate business opportunities in India, such as the Fast-Track-System for German companies or the Make-in-India Mittelstand program.
Over the years, bilateral trade has been growing, and new business opportunities are being explored. Going by the current trends, IGCC believes that Germany will soon emerge as one of the top three trading partners of India. The exchange of information and talent, in particular, is expected to deliver transformative change, leading to greater development. The German government provides a fund of about €1 billion every year for economic cooperation with India.
German universities already attract the largest number of Indian students among European countries. In addition to world-class education, Indian students have many opportunities to work in an ecosystem that welcomes diversity and encourages critical thinking. The cultural salad bowl of Germany deserves special mention. Germany offers many activities, over 25,000 palaces, assorted nature trails, port cities, and a wide range of culinary and hospitality experiences for the Indian traveller.
COVID has exposed the world’s fragility to unforeseen events. There is an African proverb that if you want to go fast, go alone, but if you want to go far, go together. Germany and India’s shared interests in a multipolar global order, with broad ties to culture, trade, education, technology, commerce and climate action, can help drive better economic growth as we all move back to building.
Puneet Chhatwal and Stephen Halusa, respectively, President, Indo German Chamber of Commerce, Managing Director and Chief Executive Officer, Indian Hotels Company; and Director General, Indo German Chamber of Commerce
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