FDI from Germany to India has increased over the years due to the fact that the German companies in India are regularly outperforming their parent companies. FDI from Germany has taken place in various industries such as information technology, chemical and auto components.
Indian states attracting FDI from Germany:
There are around 630 Indo- German joint collaborations in operation in India as on 12th October, 2005. Around one third of the total Indo- German joint ventures are in operation in the Indian state of Maharashtra.
The other Indian states that have attracted FDI from Germany are Karnataka, Tamil Nadu, Andhra Pradesh, and West Bengal.
Inflow of FDI from Germany to India:
The amount of FDI from Germany to India came to US$ 158.7 million in 1998, in 1999 this figure stood at US$ 47.2 million, in 2000 this figure came to US$ 77.6 million, and in the next year this figure increased to US$ 107.1 million. Germany has ranked sixth among all the international investors in India between 1991 and 2004.
Performance of German companies in India:
Indo- German enterprises that are listed on the stock exchanges of India are reporting better performance each quarter. The listed Indo- German companies recorded a growth in sales of around 11% yearly in the quarter that ended in December, 2004. At the same time these companies reported growth in net income of about 25% yearly. In fact the Indian subsidiaries of the German enterprises are continuously performing better than their parent companies in terms of total growth in profit and sales. This has helped to boost the flow of FDI from Germany to India.
Industries attracting FDI from Germany to India are:
- Auto components
- Electrical and electronic engineering
- Mechanical engineering
- Information Technology
- Glass and ceramics
- Metallurgical industries
Major German investors in India are:
- Robert Bosch
- Daimler Chrysler