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, Study: Indian Investments in Germany

Many previous Indian investments in Germany were driven by a focus on low costs, leading to the acquisition of distressed enterprises. Today, however, most Indian investors have gained experience with expansion abroad, and are increasingly looking for strategical investment targets in Germany's high-tech sectors . This is the result of a new study of the Bertelsmann Stiftung and Ernst & Young, which combines insights from expert interviews with existing economic data. 

As India’s economy grows, its firms are expanding into international markets – not only to increase their global market share, but also to gain access to the latest technologies. Germany, with its high-tech economy, robust infrastructure, stable political and policy environment occupying a central position in Europe, offers Indian firms an attractive location for both greenfield investments and takeovers. Indian companies have expanded into Germany and have made several targeted acquisitions here. 

The study's research questions

The statistics on these investments have been sketchy in terms of both regular coverage as well as comprehensiveness of data. This study aims to bridge this gap by answering the following questions: Why are Indian firms expanding into Germany? What are the patterns of Indian investments in the country? What are the sectors that attract investments? What do Indian CEOs identify as challenges to building their presence in Germany? What are the critical factors to consider when expanding into Germany and ensuring success? These are the questions that we aim to answer in our study, ‘Indian Investments in Germany, Prospects for Shared Prosperity’. 

Methodology and Content

The study presents thoroughly researched data from the last seven years and qualitative inputs provided by in-depth interviews with the CEOs of leading Indian companies active in Germany. We hope to portray an overall picture of both the sectoral and geographic spread of Indian investments in Germany while providing a list of the factors critical to the successful integration of Indian companies in the German business landscape. Attention has also been paid to relevant topics like the impact of Brexit, Indian private wealth in Germany as well as succession planning and acquisitions in the German Mittelstand. 


Recommendations for improving the investment climate and lowering entry barriers are laid out for policymakers as well as cities targeting such investments. We hope that stakeholders in business, politics and academia find this report helpful and that it contributes to an improved understanding of how best to work with one another across national, geographical and regulatory boundaries. India and Germany have a highly complementary economic relationship, and every step taken to realize this potential is a win-win for Germany and India alike.

Background Information

The Study "Indian Investments in Germany – Prospects for Shared Prosperity" emerged through a partnership between Ernst & Young (EY), the Confederation of Indian Industry (CII) and the Bertelsmann Stiftung.

Interviews were conducted with CEOS and managers responsible for strategic expansion at 32 Indian companies that either are already operating in Germany or plan to be there in the future. The aim was to obtain C-level perceptions of Germany's potential and its attractiveness for investment, as well as expected barriers. 

In-depth workshops were conducted with key figrues from Indian and German government bodies, academia, financial institutions, companies and industry associations. This helped to create a competent and diverse sounding board to interpret the primary data and market facts. 



Studie: Indian Investments in Germany