24 January , 2023 Fdiindia
Bilateral Trade and Investment Relations Between India and Germany Explained
India is positioned as a pivotal partner for the foreign policymakers of Germany and Europe in the Indo-Pacific amidst the geopolitical and economic developments going on in the region. While Germany does not have an agreement of standalone trade with India, it is still its largest trade partner in the European Union (EU). Meanwhile, India is currently the fourth largest trading partner of Germany in the Indo-Pacific region, though having a lot of room for growth.
Key vision documents such as the EU-India Roadmap to 2025, the Connectivity Partnership of May 2021, and the Indo-Pacific strategy of Autumn 2021- are indicators of how the EU, including Germany, is seeking closer partnership with India.
India-Germany is a Two Way Trade and Investment
Germany is India’s ninth largest investor, with a cumulative foreign direct investment (FDI) inflow of US$13.8 billion during the period of April 2000- September 2022. Key Areas of investment by Germany in India are transportation, electrical equipment, metallurgical industries, the services sector (insurance), chemicals, construction activity, trading and automobiles.
Recent Indian Investments in Germany include-
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