Although penetration of robots in the Indian industry is still quite low, it is expected that the non-automotive sector would see increased application in the future. The key sectors would be in metallurgy, glass, ceramic, pharma and food processing industry.
According to the data from the Ministry of Commerce and Trade, Germany is India's largest trading partner in European Union and 6th largest trading partner globally. However, India ranks 28th amongst trading partners for Germany worldwide and 5th among Asian exporters. Do you see India's contribution to Germany increasing?
Germany is amongst India's most important partners for trade, investment and technology. In 2012, the trade between India and Germany reached EUR17.6 billion. In 2012 Germany exported approximately EUR10.38 billion of goods to India. The exports from India to Germany attained a value of EUR7.2 billion in 2012. The exports of German machinery to India touched EUR3.2 billion in 2012. Despite the geographical challenges that India is nine times bigger than Germany, the exports of German machinery to India have increased by around seven times in the last 12 years. Although there is a slight dip in the export figures, there is a lot of potential in the long term perspective. So we look forward to a buoyant Indo-German trade in the engineering sectors with increased investment of the German companies in India.
What does Indian manufacturing industry need to do increase its contribution on this front?
For Indian companies, the German market - the largest in the EU - continues to be attractive in numerous sectors and remains an important element of any comprehensive export strategy to Europe. While Indian investors must reckon with a relatively higher cost of doing business in Germany, they can count on high levels of productivity, a highly skilled labour force, quality engineering, a first-class infrastructure, and a location in the heart of Europe. For the Indian manufacturers doing business with German customers should take good care of the specifications as the Germans are very specific with the quality of the product and the packaging part.
Germany is also the 2nd largest partner for technology collaborations globally and has been an important development cooperation partner for India. Do you see India taking further advantage of this, particularly at the grassroots level?
