Embassy of India
Berlin

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India-Germany Economic & Commercial Relations

As per the figures from Destatis (Federal Statistical Office), Indo-German bilateral trade touched an all-time high of US$ 33.40 billion (+0.36%) with exports from India at US$ 15.09 billion (-2.20%) and imports to India from Germany at US$ 18.31 billion (+2.58%) in calendar year 2024. India was Germany’s 23rd largest trading partner in 2024. As per figures from Bundesbank, Indo-German trade in services in 2024 rose by 15% year-on-year, reaching a record US$ 17.03 billion. India’s services exports to Germany were approx. US$ 10.31 billion and services imports from Germany were approx. US$ 6.72 billion.

Germany was the 8th largest trading partner for India in 2024-25. It was India’s 12th largest trading partner in 2023-24 and 11th largest trading partner in 2022-23.

German Investments in India: Germany is the 9th largest foreign direct investor in India with a cumulative FDI of US$ 15.11 billion from April 2000 to March 2025. German investments in India in FY 2024-25 were US$ 469 million (US$ 505 million in FY 2023-24, US$ 547 million in FY 2022-23). As per the Indo-German Chamber of Commerce, there are more than 2000 German companies active in India. German investments in India have been mainly in transportation, electrical equipment, metallurgical industries, services sector, chemicals, construction activity, trading and automobiles.

Recent German investments in India include an investment of €571 million by Deutsche Bank in November 2024 to strengthen its India operations and capital base, focusing on sectors like digital and infrastructure. Schneider Electric announced a €338 million investment in February 2025 to add three new manufacturing plants in India. Carl Zeiss AG invested €334 million to open a Global Capability Center in Bengaluru focused on cloud and cyber security. DHL has announced a €250 million investment by 2030 for fleet expansion, new hubs, and acquisitions in India. Siemens has allocated €100 million in May 2024 to expand its 32-factory network across infrastructure and mobility segments in India. SAP invested €100 million to expand its largest R&D hub outside Germany in India, doubling its campus and workforce by 2027. RENK Group is investing €10 million to set up a defence production site in Tamil Nadu's industrial corridor. Schaeffler Technologies AG invested about €200 million from 2022–2024 in new manufacturing capacity and e-mobility solutions.

Indian investments in Germany: As per CII, there are over 200 Indian companies operating in Germany, and are involved in trading, manufacturing, R&D and innovation, and services. Indian companies have invested in Germany mainly through Mergers and Acquisitions (M&A). Investments are mostly in IT, automotive, pharma, biotech and manufacturing. The penetration of Indian software companies in the German market is increasing. Major clusters of Indian companies are in the States of North Rhine Westphalia, Hesse, Bavaria and Baden-Württemberg.

Recent Indian Investments in Germany include HCL Tech’s 100% acquisition of ASAP group which provides automotive engineering solutions focusing on autonomous driving technologies, e-mobility and connectivity. Samvardhana Motherson acquired Dr. Schneider Group, a German automotive supplier, to expand its footprint in interior polymers business. Sudharshan Chemical Industries acquired Heubach Group, a German pigment manufacturer, for establishing a broad pigment portfolio with state-of-the-art technologies. Infosys acquired In-tech, an engineering and R&D services provider specializing in e-mobility, connected and autonomous driving. Texma Precision Castings acquired a 75.1% stake in Feinguss Blank, a German company engaged in manufacturing of steel casts. TCS acquired 100% stake of Postbank Systems AG, whose services include infrastructure operations and business consulting for retail banking. Ravicab Cables Pvt. Ltd. acquired a 100% stake in Elegar Kerpen Kabel India, which offers specialized wires and cables for oil, gas, refineries, specialty chemicals etc. Reliance New Energy Ltd has topped up its investment in German climate technology company NexWafe GmbH. Wipro PARI acquired Hochrainer GmbH, a German family-owned company which supplies automation technology and assembly systems for global automobile manufacturers.

Fast Track Mechanisms: India and Germany have two Fast Track Mechanisms (FTM), namely one in India and the other in Germany for resolving issues faced by investors in each other's country. FTM for German companies in India is operational since March 2016 led by Department for Promotion of Industry and Internal Trade (DPIIT) and the German Embassy in New Delhi. Similarly, a FTM for addressing issues faced by Indian Companies operating in Germany has been set up in the German Ministry for Economic Affairs & Energy (BMWi) in April 2019.

A Market Entry Support Programme, the “Make in India Mittelstand” (MIIM) for German Mittelstand (SMEs) and Family-Owned Businesses is being implemented by Embassy of India, Berlin to support high potential Mittelstand companies with medium to long term potential for manufacturing in India. As of June 2025, 241 companies are being facilitated through this Programme with a declared investment of about €2.2 billion. More than 30 of these companies are ‘hidden champions’ that are market leaders in niche products/technologies.

The 7th India-Germany Inter-Governmental Consultations (IGC), held on October 25, 2024, under the theme “Growing Together with Innovation, Mobility and Sustainability,” identified several key focus areas for enhanced bilateral cooperation, which include technology & innovation; migration and mobility; sustainable development and climate action; economic and strategic cooperation; and education & skill development.

Both countries see mutual benefit in an India-EU Free Trade Agreement (FTA) and Investment Protection Agreement, and announced their desire to progress on the Agreements during the 7th IGC. India and the EU are making progress in negotiations for a Free Trade Agreement. As of June 2025, India and the European Union (EU) have concluded 11 rounds of FTA negotiations. The 11th round was completed in May 2025.

Development Cooperation:

Germany has been an important development cooperation partner since 1958. Under the Green and Sustainable Development Partnership (GSDP), Germany has committed to providing €1 billion annually (comprising reduced interest loan, grants and technical assistance) up to 2030. Development projects are covered under the areas of (i) climate adaptation and mitigation, (ii) renewable energy and energy efficiency, (iii) sustainable urban development, (iv) forests, (v) water, and (vi) agriculture. Under the India-Germany Triangular Development Cooperation, both countries are working together to identify and implement projects in third countries, focusing on addressing development challenges and achieving SDGs.