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India and Germany are bound by tremendous business opportunities and close economic links based on the fundamentals of understanding and support, said Dr. Mahesh Gupta, President, PHD Chamber of Commerce and Industry in a press statement issued here today.
Based on strong complementarily and growth prospects going forward the trade between two nations is expected to touch USD 25 billion by 2018. Currently, India-Germany trade is valued at USD 18.9 billion.
Among various products, India's thrust products in Germany included organic chemicals (9.57%), non-knitted apparels (8.46%), nuclear reactors and boilers (8.37%), knitted articles (8.16%), electrical equipments (5.76%) of total exports.
Germany's thrust products in India included nuclear reactors and boilers (29.91%), electrical equipments (10.68%), optical, measuring, photographic, medical or surgical equipments (8.14%), vehicles (7.44%), organic chemicals (5.49%) of total exports.
Dr. Mahesh Gupta also added that Indian exports into Germany were mainly focused on Consumer Goods, viz. nearly 54% of the total exports. On the other hand, nearly 61% of the total imports from Germany were focused on Capital Goods.
This clearly describes the characteristics of Germany being heavily endowed with capital-intensive goods is exporting India. On the other hand, India a relatively more labour-intensive nation is exporting more consumer goods to Germany, he said.
It was also highlighted by Dr. Mahesh Gupta that India's export pattern has become more and more aligned with the import pattern of Germany over time. Both nations witnessed a favourable complementarity scenario.
Also, the basket of exportable products from India remained opulently diversified over the years, thereby rendering Indian exporters relatively less susceptible to volatility in a turbulent trade scenario.
Also, both nation registered satisfactory intra-industry trade numbers with substantial contribution in each other's value chain, which is expected to grow further in the coming times, further added Dr. Mahesh Gupta.
Dr. Mahesh Gupta presumes that with further liberalization of FDI policy in different segments and the advent of GST next year, FDI from Germany is expected to touch a new growth trajectory.
Going ahead, it is essential for both the parts to become proactive and adopt deem policies to rejuvenate the falling trend in trade. Both nations should continuously meet and engage in discussions related to mitigating bilateral trade issues, defence ties, renewable energy, skill development and other vital areas.
As India is moving ahead as the front runner in growth of its economy, it needs extrinsic support from all the countries and Germany is one such nation which can truly transform into a sustainable partner for trade and economic growth.
India's inordinate and skilled human capital highly aligns with the technological capabilities of Germany whereas German companies are competent in rendering infrastructural necessities to India, especially in logistics and construction sectors, added Dr. Mahesh Gupta.
Going ahead, growth prospects for trade and development between two countries are very promising and sustainable, not only for the coming years but for the coming decades, said Dr. Mahesh Gupta.
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