Indian Investments in Germany: Innovation and R&D Gain Momentum in a Stable Partnership

Abstract

Growth in Indian firms’ investments in Germany, by and large, continued to stay on a stable course between September 2010 and August 2011, since our last report in the IGCC Annual Review. In a maturing market we could observe some significant investment projects and a new and positive dimension in Indian subsidiaries’ operations in Germany: Ever more firms are discovering the merits of using Germany’s technological expertise and infrastructure for augmenting own R&D capabilities and innovation portfolios. This trend is fostered by the excellent growth that many Indian firms are witnessing in Germany at present.

Keywords: India, Germany, Indo-German Economic Relations, Outward FDI, Foreign Direct Investments, Emerging Economies