Germany and the Germans have a very good reputation in India. They are not necessarily loved, but they are admired for their reliability and effectiveness, political stability and economic success. Nevertheless, Germany is an unpopular country even for expats. The reason: You can hardly find a connection here. This must not only be due to the rather reserved hospitality of the Germans, but also has its reason in the language. Since in India, at least in the educated stratum, English is the language in which one also communicates among Indians, German as a language tends to lead a wallflower existence.

Conversely, India is far behind on the wish list of foreign destinations for Germans. Among the three countries where expats of any nation feel most uncomfortable is India, in addition to Saudi Arabia and Kuwait.

Trade volume with Germany (Europe)

With a volume of 16.1 billion euros, the Federal Republic is India's most important trading partner within the EU. With a volume of 16.1 billion euros, the Federal Republic is India's most important trading partner within the EU. The German trade surplus was 3.4 billion euros in 2012/13. The German trade surplus was 3.4 billion euros in 2012/13. The value of exports to Germany was just over 9 billion.

Migration

According to the Foreign Office, about 3,000 Germans are based in India, working in business, education, culture and missions. Significantly more Indians are drawn to Germany; around 45,000 live in the Federal Republic of Germany.

Gross domestic product

India is one of the three largest and fastest-growing economies, along with Russia and China, with a GDP of USD 1.877 billion. According to the Foreign Office, per capita income for the city in 2013-14 was USD 1,229.

Economic growth

The economy has been largely liberalised and growth has been at a fairly high level for years. In 2014, it was 6.8 percent. Exports increased by 20 percent in 2012.

Loans

One billion euros of credit came from Germany (Dutchland) alone in 2013. They are intended for investments in renewable energy and other sustainable energy efficiency projects.


Inhabitants

1.2 billion people live in India. Society is very different: progress-oriented and traditional, poor and rich.


Growth

With an average annual economic growth of ten percent over the past ten years and more than seven percent this year and probably also next year, India is one of the fastest growing economies in the world.

Source: DIHK


Infrastructure

Infrastructure expansion as well as the establishment and expansion of industrial structures are two of many areas that represent the enormous development process in India. Other areas: Renewable energies, automobiles and suppliers, services (logistics, finance)


Germany

India is Germany's (deutschland) 25th most important trading partner country. In terms of German (deutschen) direct investment abroad, India ranks 10th outside the EU.


Exports

German exports to India amounting to 8.92 billion euros (2014) testify to the high Indian demand, especially for capital goods. First and foremost for machines (especially non-electronic ones), which make up about a third of total exports to India (followed by chemicals and electronics). In view of the size and dynamism of the Indian market, the potential of German-Indian trade is far from being exhausted.


Imports

Main German import products from India (3.59 billion euros in 2014) are chemical products, clothing and machines.


750 billion euros for infrastructure

To prevent this, Prime Minister Modi wants to significantly improve transport routes and, above all, supply routes. More than 400 million Indians still have no electricity, especially in the countryside. But when it takes electricity, the government is betting on a climate killer: coal. India currently produces around 550 million tonnes of coal a year, and is expected to be one billion tonnes in 2019.


Indian coal is cheap, making power plants and electricity affordable. The problem of supply can be solved in this way, but it does create another: India's major cities are already considered to be the worst air quality cities. This is a state of affairs that is unlikely to improve with the coal boom. But India's Energy Minister Piyush Goyal denies this criticism: "India's compulsion to develop cannot be sacrificed on the altar of possible climate change in the distant future."


The government wants to invest 750 billion euros in infrastructure by 2017. "Most of the infrastructure needed in 2050 does not yet exist," says Bazmi Husain, head of the India subsidiary of the Swiss conglomerate ABB. "This is a great opportunity for the economy." Especially in the cities, the supply has to increase strongly: Today, "only" 30 percent of the 1.3 billion Indians live in cities, but by 2030 it will already be 40 percent – and the trend is rising. Added to this is the need to catch up, because in recent decades the infrastructure has not grown at the same pace as the population. The chaotically laid power cables on each street corner are just one example.


Champagne at beer prices

Although the infrastructure projects mostly go to large international companies such as Siemens, ABB or Mitsubishi from Japan, German medium-sized companies can also benefit – as suppliers. Parts such as control cabinets, plug-in connections or terminals are still purchased. And preferably in the usual international quality.


For this reason, the terminal specialist Phoenix Contact from Blomberg in East Westphalia set off for India in the 1990s. "Our products are used in industry or infrastructure," says Managing Director Frank Stührenberg. "Where there are many people, an industry and supply chain must eventually be created – to produce enough goods to provide the population with food and equipment."


Phoenix Contact has been manufacturing its products for the Indian market for more than 20 years at the gates of Delhi. During this time, Stührenberg says, not only have the framework conditions such as infrastructure and the fight against corruption improved, but the company has also become familiar with – and understood – the peculiarities of the country. "Today we know much more precisely what the requirements are for a product and what the price has to look like. And in India there is a lot of competition about the prize." In other words, "Indians often want champagne at beer prices."


Because of these requirements, the Blomberg-based company has been operating its own development department for a year. As many EU standards are not required in India, these functions can be omitted without any problems. In addition, not all materials are often available – and the component has to be changed or rescheduled from the ground up.


Despite the difficult environment, Phoenix Contact has succeeded in establishing itself as a premium provider in the price-sensitive market. The open secret: Customers from Europe are also eligible as customers in India. "A significant part of our clientele in India is recruited from multinational companies," says Stührenberg. "Such companies are guided by international standards and want to obtain the usual quality in India as well. The other extreme, the Indian plumber far away from the metropolises, is very difficult for us to reach."