The trade between India and Germany has been steadily growing over the past few years, and India is now one of Germany’s most important trading partners. The bilateral relations were founded on common democratic principles and are marked by high-level trust and mutual respect. Today exports from Germany to India have amounted to $12.1B in 2021, while the country imports more than $8.8B worth of goods from India.
In this article, we take a closer look at the ever-growing trade partnership between India and Germany.
Trade Relations Between India & Germany
Since India opened up its economy in 1991, the trade between India and Germany has seen a steady increased. Today Germany is India’s largest trading partner in Europe, and the bilateral trade between the countries increased to $21.98 billion during 2017-18 with a growth of 17.15%.
More than 1,700 German companies are active in India, with over 600 Indo-German joint ventures in operation. German investments in India focus on sectors such as transportation, electrical equipment, metallurgical industries, services, chemicals, construction activity, trading, and automobiles. There are around 200 Indian companies operating in Germany, including IT, automotive, pharma and biotech organisations. Germany has been an integral development cooperation partner of India since 1958.
The table below shows the detailed import and export figures between the two countries from 2014 to 2020.
(Data Source: Ministry of Commerce & Industry, Govt. of India)
What Does India Import from Germany?
India imported more than 12.1$b in goods from Germany in 2021. India imports a wide variety of goods from Germany, including chemicals, auto components, measurement and control equipment, machinery, electro technology, metal and metal products, plastics, pharmaceuticals, paper and printing materials, and medical technology.
What Does India Export to Germany?
The Indian exports to Germany have grown 5.5% each year over the last 25 years, and in 2021 they totalled $8.8B. Germany imports from India the following product categories: gas turnies, packaged medicaments, broadcasting equipment, food and beverage, metal and metal products, machinery, leather and leather goods, chemicals, rubber products and auto components.
How to Export to Germany From India?
There are many things to consider when exporting from India to Germany. For example, you need to make sure that your shipment has been properly labelled and packaged in order for it not to be damaged during the transportation process (E.g. through the ISTA 1A test)
But it is also your responsibility to ensure that your shipment meets all of Germany’s import requirements and regulations/directives before it can be imported into the country, and these regulations can differ depending on what product you want to export.
Some products face import restrictions, including:
- Agricultural products
- Medicinal products
- Textile products and clothing
- Chemical
- Iron and Steel Products
Click here to see the full list of product categories.
There are also product groups that have to comply with regulatory requirements and require testing and certification. For example, such mandatory requirements are often applied to chemicals, cosmetics, agricultural goods, and animal products. While phytosanitary certificates may be required for fresh fruits, vegetables, animal products, CE Marking apply to electronics, medical devices, electrical appliances, construction products and toys.
Conclusion: Import and Export Trade Between India and Germany
The bilateral trade between India and Germany has increased over the past few years, and the future indicates a lot of trade opportunities. But it is crucial that as a business exporting from India to Germany, that you meet all of the regulations in the European Union. Not just those of your own country.
AQM BD has accredited laboratories that can help you with a range of tests, including RoHS, REACH and CE marking. With over 25 years of experience in quality assurance across Asia, AQM BD is ideally placed to support your growing and expanding business. Contact us today for a free quote on our testing or quality inspection services.
