Indian Investments in Germany: Promising Prospects and Still Untapped Potential

In the reporting period between August 2013 and July 2014 several Indian companies continued to invest in Germany. The “evident pace” of investments, however, did not match the overall growth in India’s outward foreign direct investments. Also, firms from other emerging economies increased their investment activities threatening to overshadow India’s leading position in Germany. With the new Indian government’s thrust on the manufacturing sector and its explicit efforts to foster partnership with Germany, new avenues are expected to emerge for bilateral collaboration. On the back of a rebound Indian economy, domestic companies are once more set to exploit the large investment potential still-untapped