With trade growing between Indian and Germany, India is the third largest sales market in Asia for the German engineering industry.

India is the third largest sales market in Asia for the German engineering industry. Presently, more than 525 VDMA member companies are engaged with their own business in the Indian market. In 2015, the trade between India and Germany grew by 8.3 percent to Euro 17.29-billion (`129.67-thousand-crore) from a figure of nearly Euro 15.96-billion (`119.70-thousand-crore) in 2014.

Indian imports from Germany experienced growth of 9.3 percent over the previous year and amounted to Euro 9.75-billion (`73.12-thousand-crore). The exports from India to Germany attained a value of Euro 7.54-billion (`56.55-crore) in 2015. This was an increase of 7.1 percent as compared to the year 2014.
In 2015 the total import of machinery from Germany reached a volume of Euro 2.91-billion (`21.82-thousand-crore). This was an increase by 15 percent compared with the same period of time in the previous year. In 2015 among the machinery sectors, major demand of German equipment was for Air Handling Technology (9.6 percent), Power Transmission (9.4 percent), Textile Machinery (6.9 percent), Machine Tools (5.8 percent), Material Handling (5.5 percent), Valves (5.5 percent), Plastic and Rubber Machinery (4.7 percent) and Printing and Paper Technology (4.3 percent).

There are other sectors like Food Processing and Packaging, Process, Construction and Building Material Machinery which are growing steadily in India.
In 2015 out of approximately Euro 20.1-billion (`150.75-thousand-crore) of machinery imported by India, Germany had a share of around 15.2 percent, marginally behind China (26.3 percent) and ahead of Japan (9.4 percent) and USA (8.3 percent).
Maharashtra with around 39 percent share of German investments remains to be the most attractive destination for German investments in India. In the last four to five years, Pune has become the hotbed for new German investments. Karnataka and Gujarat are other important destinations.

Construction Machinery: Growth only in India
The heterogeneous nature of the markets is once again the determining theme for manufacturers of construction equipment. North America and the Middle East, two of the most important growth markets of the past few years, are seeing drops in machinery sales this year – not least due to the continuing weakness in the oil and gas sector.
This is compounded by the still weak markets of Latin America, Africa and large parts of Asia. Formerly, the largest market, China is still not back on its feet and will, after five years of recession, have lost close to an accumulated 80 percent of its volume.
In Asia it is only the Indian construction equipment market that is growing, stimulated by increased investments in road building. Out of the total export of construction machinery to India, Germany stands fourth with a share of 10 percent.
The European market looks positive in 2016. The German market stands at a high level and was able to post further growth in 2016. While a drop is anticipated for global construction machinery sales due to regional developments, German manufacturers are confident of a slight turnover increase of 3.0 percent at sectoral level.