Investor Conference in India Showcases Advantages of Eastern Germany

02/09/2010

Berlin/Bangalore – The number of Indian investors in Germany continues to rise. 215 Indian companies are active today in Germany. Potential Indian investors will preview the advantages of doing business in Europe’s largest market at an investor conference on February 11 in Bangalore. Thanks to favorable business conditions, high-tech industries preferred by Indian investors – such as Information and Communications Technology (ICT) – have developed in Eastern Germany.

Germany Trade & Invest, the foreign trade and investment promotion agency of the Federal Republic of Germany, is currently presenting the advantages of Eastern Germany’s ICT industry at the NASSCOM conference. The event is taking place in Mumbai from February 9 – 11. On February 11,Germany Trade & Investis informing Indian investors of the business opportunities and conditions in Eastern Germany at an event in Bangalore. Indian IT service provider L&T Infotech will present its successful experience in Leipzig, one of Eastern Germany’s thriving business hubs. An additional event in India is planned for the end of the year.

Germany’s market size and its central location within the common European market provide investors with direct access to one of the largest economic regions worldwide. Germany itself is an attractive location for foreign investors due to its high level of research and development spending compared to the European average. The innovative environment is ideally suited for the production of technologically advanced products. The highly-qualified workforce and efficient infrastructure and logistics further boost the country’s attractiveness to foreign companies. In comparison to India, office rentals are also a beneficial aspect. On average, office space in Germany costs less than half the price of an equivalent space in India. Germany also offers an efficient framework for starting a business. With an average of only 18 days to set up a business, Germany exceeds the global average of 35 days as well as the normal time of 30 days in India. Germany’s most recent economic stimulus package, the Economic Growth Acceleration Act, took effect at the beginning of the year and adds a further boost to the investment environment.

The level of interest by Indian investors in Germany has grown considerably in recent years. Between 2006 and 2007 alone, FDI stocks from India nearly doubled, climbing from EUR 131 million to EUR 242 million. In 2008, Germany could lay claim to 215 Indian companies that employ approximately 12,000. Some of the most successful businesses include Mahindra Forging Europe GmbH, CDP Bharat Forge GmbH and Tata Consultancy Services Deutschland GmbH. Indian investor interest is concentrated primarily on the Software and IT industry – over half of new Indian investments have been in this industry. The chemicals, automotive and machinery industries are also attractive for Indian companies. Eastern Germany offers an especially competitive environment in these fields.

The keynote speaker at the investor conference "How far West? – Choose Your Corporate Presence in Europe" will be Satish Sarathy, Head SAP Europe for L&T Infotech. L&T Infotech is a subsidiary of Larsen & Toubro Ltd. (L&T). The company has over 35,000 employees worldwide and achieved revenues surpassing USD 8.5 billion in 2008/2009. L&T Infotech, a global provider of IT solutions, has an office in Leipzig. The company works with market leaders such as Bahrat Petroleum, Chevron, Freescale, Hitachi, Sanyo and Lafarge. Satish Sarathy will highlight his company’s success in Eastern Germany. With its decision to establish a presence in Leipzig, the company confirms the quality of Eastern Germany as a business location, especially in the IT industry.