Indian investments in Germany are skyrocketing. In 2008 alone, Indian companies invested almost EUR 2 billion in Germany, doubling 2007 figures. ICT continues to be the sector best represented in terms of investments. As a result of this booming demand, representatives of leading Indian companies will receive an introduction to Germany’s robust ICT market. At the NASSCOM session "Business Opportunities in Germany" on June 26 in Mumbai, representatives from BITKOM, Germany Trade & Invest, and the German federal state of North Rhine-Westphalia will discuss the wide range of business advantages Germany offers potential partners.

Due in part to Germany’s robust economy, Indian investors are looking beyond the traditional markets of the United States and the UK. Companies such as Megasoft, NIIT, and Samtel have chosen Germany as a business location due to its large market and proximity to other major European markets. In addition to doubling direct investment figures, Indian FDI flows into Germany - measured in terms of equity capital - between 2004 and 2007 leapt from EUR 3 million to EUR 18 million, according to the Bundesbank. Indian FDI stocks in Germany in the same period climbed from below EUR 1 million to EUR 242 million. The Indo-German Chamber of Commerce listed some 120 Indian firms active in the country just three years ago. Today that figure has doubled to 240.

Germany’s ICT industry has a number of unique advantages. As is the case for Megasoft, NIIT, and Samtel, one of the main reasons for the increased investment in recent years is Germany’s strategic location at the heart of Europe. This factor makes it a gateway to accessing the entire European market for Indian companies looking to expand overseas. Locating in Germany allows them to be closer to customers and suppliers and to build a central base for Europe. In addition, Germany offers political stability, legal transparency, low inflation and a high quality of life.

Germany is one of Europe’s leading players in the ICT sector, making up approximately 20 percent of the European market, and has the fifth largest market for ICT worldwide. With a volume of over EUR 130 billion, it leads Europe in sales, growth potential, and personnel. The industry is on the rise, closing in on the peak position among Europe’s most populated nations. In the recent Monitoring Information and Communication Economics study, Germany took the number one position in Europe in terms of total market performance and was the global market leader in per capita revenue in business to consumer ecommerce, coming in ahead of the USA.

While estimates show that the ICT industry as a whole is suffering due to the economic crisis, Germany’s sector is well positioned to withstand the downturn and even continue growing. A number of industry sub-segments are expected to expand, which include some of Germany’s innovation leaders: Greentech, Embedded Systems, RFID technology, Internet services, mobile applications, and business process outsourcing. Germany also leads Europe in patent applications, further driving sector innovation.

Along with event partners, Asha-Maria Sharma, Senior Manager of IT-Services & Software at Germany Trade & Invest, will present Germany’s business location advantages in Mumbai to potential partners.

Germany Trade & Invest is the foreign trade and inward investment promotion agency of the Federal Republic of Germany. The organization advises foreign companies looking to expand their business activities in the German market. It provides information on foreign trade to German companies that seek to enter foreign markets.

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