India has been able to integrate itself in the global economy in the last two decades. There was a time when the country was at the receiving end of technology and manufactured goods. The nation adopted policy of import substitution in post independence period. The public and private companies were ordered to produce for essential consumer goods for the domestic population rather than making adventures across the seas. Public resources were diverted to ‘critical industries’ to trim down imports and make country economically independent. However, after the Nehruvian consensus broke in late 1980s and early 1990s, the policymakers decided to leave entrepreneurs to make independent decisions rather than dictating them.
The freedom to entrepreneurs helped Indian economy immensely. The corporate started producing goods and services not just for domestic consumption but for exports too. Information Technology (IT) sector, the prime source of foreign exchange for India flourished in post-liberalization period. India MNCs in IT sector like Infosys, TCS, and HCL have offices in almost all major economies of the world. The pharmaceutical sector emerged as a major export in the last decade. In the initial decades of independence India took help from countries like Germany, United States to set up technical education institutions like IITs and NITs. In the later decades, companies set up by graduates of these institutions started businesses across Greco-Roman civilization.
Indian companies generated annual revenues worth 11 billion Euros and employed 23,300 people in Germany. The survey was conducted by Ernst & Young (E&Y) on behalf of Indo-German Chamber of Commerce (IGCC) and Confederation of Indian Industry (CII). “Out of the total number of more than 213 Indian subsidiaries operating in Germany, nearly 74 Indian companies each with annual turnover of more than 10 million euros generated combined annual revenues of around 11 billion euros,” said the report released by EY. However, the business of Indian companies are not very much diversified, four sectors dominate the scene.
Automotives, metals and metal-processing, chemicals and pharmaceuticals and professional, scientific and technical services- four dominant sector generate 95 percent of total revenue and employ more than 89 percent of total 23,300 employed people. The dominance of few units are visible among 74 companies. “The top 10 Indian companies alone account for more than 74 per cent of all revenues generated by Indian companies and employ around 59 per cent of this group’s total workforce,” said the report.
India-Germany relations strengthened in the last few years and trade has grown exponentially. Germany is India’s biggest economic partner in Europe and sixth largest at the global level. In FY 2016-17, bilateral trade amounted 18.3 billion dollars. Nearly 1800 German companies had invested 10.7 billion dollars in 2000 to 2017 which makes it seventh largest investor in the country and Indian companies had invested more than 6 billion dollars in Germany. The future of India-Germany relation looks brighter because both countries have many critical areas to cooperate. India looks forward to cooperate with Germany for Skill India program, German industries and universities had most robust program for skilling people and India is more than enthusiastic to take advantage of it. Germany wants to become ‘Gateway to Europe’ for countries like India in the post-Brexit period.
The global footprints of Indian companies are expanding exponentially and European countries are at the forefront of it. India is also looking forward for free-trade deal with European Union, it already had free trade agreements with ASEAN, Australia and many other countries. India has become indispensable for global economy, the companies which were working for import substitution now look to grab global consumer. This global expansion of Indian companies signifies that good days of Indian economy have begun.
