Germany's economy : A snapshot
Germany is the largest economy of Europe and fifth largest in the world in terms of Purchasing Power parity (PPP). Its highly skilled labour force, continuous advancement in technology and well thought out development planning has made it one of the leading developed economies of the world. As per recent updates, the country is set to recover slowly in 2024 fuelled by recovery in real household income and improved consumer sentiment. Recovery in investment growth is also expected in 2025. Overall real GDP growth is forecast to increase by 0.1% in 2024 from a 0.3% decline in 2023. In 2025, real GDP growth is forecast to recover moderately to 1.0% in 2025.
India and Germany's Bilateral Trade
Germany is the fourth largest destination for India's engineering exports and the largest in European Union. Engineering exports to Germany was recorded at USD 3.24 billion in 2018-19 and then, after declining in the next two fiscals due to the pandemic, it continued its rise in the next fiscals. In FY 2023-24, engineering exports to Germany increased by 4.7% contrary to the decline in overall merchandise exports. Major engineering panels exported from Germany to India include electrical machinery, auto components, products of iron and steel, industrial machinery, medical and scientific instruments, auto tyres and tubes, injecting and moulding machinery, IC engines, etc.
Opportunity in Germany's engineering industry
Germany is the major hub of engineering sector in the Europe mainly due to its technological prowess, high skill level and geographical location. Although Germany is a major export destination for India, India's average share in Germany's import basket is significantly low. Germany's major export partners are USA and other EU countries. China is the only Asian country featuring prominently in the list of engineering suppliers to Germany across almost all major panels. Therefore India has significant scope to increase its share in Germany's import basket. Attending such exhibitions would give Indian exporters scope to improve their access to the German market.
