Herausforderungen in Indien,

insbesondere im Hinblick auf

Beschaffung

Guido Christ

Deputy Director General of the Indo-German Chamber of Commerce

India is the third-largest economy with respect to Purchasing Power, even ahead of Germany

India - Economic Overview

GN

I in

2014 (

in U

SD

Mil.)

17632.014 17416.253

7277.279

4788.0333621.357

0

2000

4000

6000

8000

10000

12000

14000

16000

18000

20000

USA China India Japan Germany

IMF, World Development Indicators, November 2014

India - Economic Overview

Expecting Improvements of Growth

-2

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

%

Indias GDP Growth %

IMF, World Economic Outlook, Oct, 2014

India’s GDP growth outperforms World GDP growth…

India - Economic Overview

-6

-4

-2

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014%

India GDP Growth Rate World GDP Growth Rate

IMF, World Economic Outlook, Oct, 2014

…and above that of Europe

India - Economic Overview

* Forecast

-6

-4

-2

0

2

4

6

8

10

12

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

%

India GDP Growth Rate Eurozone GDP Growth Rate

IMF, World Economic Outlook, July 2014

The Service Sector generates the largest percentage of

Gross Indian GDP

India - Economic Overview

CMIE, Economic Outlook, May 2014

0

10

20

30

40

50

60

70

80

90

100

1950 1990 2013

51.8

29.0218.2

14.16

26.49

24.77

33.2544.18

57.03

%

Agriculture Industry Service

India - Economic Overview

INFLATION IN INDIA

4,41

6,95

5,92

9,19

10,61

9,49 9,47

10,2

9,48

7,82

0

2

4

6

8

10

12

IMF, World Economic Outlook , Oct 2014

Foreign Exchange Reserves on an upward trend

Debt Service Capacity

India - Economic Overview

0

50000

100000

150000

200000

250000

300000

350000

400000

450000

500000

Foreign Reserves (in USD) External Debt (in USD)

In M

io.

USD

CMIE, Economic Outlook, Feb. 2015

0

100

200

300

400

500

600

573 535 527

293

208 128 18

Large Potential for Growth Number of cars per 1000 inhabitants

India - Economic Overview

x 28

CMIE, Economic Outlook, April 2014

Bilateraler Handel

AHK Indien

German imports from India are slightly decreasing

India - Economic Overview

Volume of German imports from India from 2001 to 2014

deStatis, Feb. 2015

2.5 2.5 2.6 3.0

3.4

4.2

4.7

5.2 5.1

6.2

7.5

7.0 6.9 7.1

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in B

n. E

uro

2014 forecast

German imports from India 2013-2014

Agricultural Products

8% Ores and minerals

1%

Leather and leather

products

9%

Chemicals

14%

Metal products

8%

Machines and facilities

11%

Electronical products

5%

Transportation

6%

Textiles and fabrics

7%

Clothes

14%

Other manufectured

goods

9%

Petroleum & raw

material

1%

Others

7%

CMIE, June 2014

German exports to India are slowing down

India - Economic Overview

Volume of German exports to India from 2000 to 2013

deStatis, Feb. 2015

2.3 2.4 2.4

3.2

4.2

6.4

7.4

8.2 8.0

9.3

10.9 10.4

9.2 9.0

0.0

2.0

4.0

6.0

8.0

10.0

12.0

2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

in B

n. E

uro

2014 forecast

Others

5%

Non-irony products

2%

Metal products

3%

Metalliferous products

2%

Non-electronic machines

28%

Optical products

5% Electrical machines

3%

Machine tools

3%

Resin and plastics

4%

Iron / Steal

4%

Elektronik-produkte

10%

Gold & Silver

4%

Project products

5%

Transportation equipment

7%

Chemical products

11%

German Exports to India 2013-2014

CMIE June ,2014

Indias most important trading partners

CMIE, World Economic Outlook, July 2014

0

10000

20000

30000

40000

50000

60000

70000

80000

China UAE USA Switzerland Saudi Arabia Indonesia Germany Japan

trade volume 2012-13 trade volume 2013-14 trade volume until Nov. 2014

Indien als Beschaffungsmarkt

• Was ist typisch ?

• Was nicht so bekannt ist

• Herausforderungen ?

• Beispiele

Indien als Beschaffungsmarkt

Was ist typisch ?

Textilien, pharmazeutische Produkte,

Leder, Handwerkliches

Indien als Beschaffungsmarkt

Was nicht so bekannt ist

Mechanische, elektrische Komponenten

Stahlbau

Guss

Treiber: lokaler Markt, lokale Fertigung

Indien als Beschaffungsmarkt

Herausforderungen ?

Wer kann was ? Lieferanten finden

Größe des Landes

Qualitätsdenken, Qualitätsüberwachung

Zuverlässigkeit, Konstanz, Back Up

Infrastruktur und Bürokratie

Indien als Beschaffungsmarkt

Beispiele

EADS: Flugzeugkomponenten

Deutsche Automobilhersteller: verschiedene

Komponenten

Siemens: Gussteile, Elektromotoren

There are more than 1000 German companies in India

India - Economic Overview

41%

17%

14%

13%

8% 5% 2%

Mumbai / Pune Other Dehli / Gurgaon Bangalore

Chennai Kolkata Hyderabad

German companies in India

India - Economic Overview

46%

20%

13%

10%

5% 4% 2%

fully-owned subsidiaryJoint VenturesTechnical JVsLicence AgreementLiaison officeRepresentation

Going to India:

Challenges for German SMEs

• Right product for the market ?

• Resources in staff and funds ?

• Type of legal entity ?

• Company Formation ?

• Bottlenecks and daily challenges

Going to India:

Challenges for German SMEs

Right product for the market ?

Reliable market assessment ?

USP ?

Reverse Engineering ?

Going to India:

Challenges for German SMEs

Type of legal entity ?

Branch office, Pvt. Ltd., Liaison office ?

manufacturing ?

alone, JV ?

Going to India:

Challenges for German SMEs

Resources in staff and funds?

India can be very time and energy consuming

Intercultural aspects to be taken care of

Going to India:

Challenges for German SMEs

Company Formation ?

comparatively easy ?

but: buy or rent property?

Going to India:

Challenges for German SMEs

India - Economic Overview

• Bottlenecks and daily challenges

infrastructure

bureacracy

transfer pricing, taxes

corruption and compliance

Indo-German Chamber of Commerce

India - Economic Overview

IGCC Numbers and Facts

India - Economic Overview

Established 1956

6 Offices in India, 1 in Germany

17 Representations in India

1 Representation in Brussels

With 7,000 members, the largest bilateral chamber worldwide

100 employees

9 India Desks in Asia, Australia, Africa and the Gulf

18 India Desks in Germany

Offices

Main Office

Offices

New Delhi

Bengaluru

Kolkata

Düsseldorf

Chennai Mumbai

Pune

IGCC - 17 Representations in India

Asif Azad

Saga Oriental Crafts

Gurusaran Singh

GNA Axles

Dr. Anton Reinfelder

Groz-Beckert Asia

Rahul Desai

Bosch Rexroth

R.J. Anandpara

FAG Bearings

Konrad Noertersheuser

Thyssenkrupp Electrical

Steel

Cecilia Menezes

Deutsche Konsulin

Rama Varma

Aspinwell

Syed Ibrahim

Goethe-Zentrum

Trivandrum

Subhir Mehta

Manforce Trucks

A.N. Sinha

Jenson and Nicholson

B.B. Srivastava

Bhushan Bhaskar

Engineers and

Consultant

Dr. Shailendra Kumar

Tamotia

Bharatiya Vidya Bhavan

Jean Marie Lagey

Skoda Auto

D.N. Gauri

EPE Process Filters and

Accumulators

R.C. Jagadesh

Klüber Lubrication

A. Shanmugavasan

KOB Medical Textiles

Finally…

India - Economic Overview

English language

Understandable legal system

Comparable mentality

Indians are global acting people

7 Good reasons for a commitment in India

Finally…

India - Economic Overview

7 Good reasons for a commitment in India

Transparency

Free press

Stable Institutions