Indo-German bilateral trade may double in next 10 years

With the revival of economy in Europe, the Indo-German bilateral trade is expected to double over the next 10 years from about $20 billion currently.

"We expect the bilateral trade between India and Germany to double in the next 10 years... The trade between the two countries has increased at an exponential rate in the last few years, though it was affected last year due to global financial crisis," German Ambassador to India Thomas Matussek told PTI.

Indian exports to Germany mainly consist of cotton garments, leather goods, chemical and pharmaceutical products.

India, on the other hand, imports machinery, chemicals and pharmaceuticals, electro-technical goods, vehicles, iron and steel from Germany.

Germany, which was hit-hard by recession, is looking aggressively at investment opportunities in India in sectors like automotive, alternative energy, defence and transport.

"If you talk to the heads of German corporations, who do business in India, it was astonishing to know that 80 per cent of them are happy and they are very bullish for the future," the Ambassador said.

The Foreign Direct Investment (FDI) from Germany to India stood at $629 million in 2008-09. In the first nine-month of the current fiscal, it was $539 million.