The ambitious target of taking the trade between India and Germany to euro 20 billion in 2012 could not be achieved due to the global economic crisis, a top German diplomat has said.
German Ambassador to India Michael Steiner said that it could not be predicted if the target is achievable this fiscal, because it depends on several factors, including reforms in India.
Germany is India's largest trading partner in Europe. The slowdown affected bilateral trade in 2012, which declined by 5.5 per cent to euro 17.4 billion, according to Ministry of External Affairs data.
"It is true that we have not reached the target set by the Prime Minister and the German Chancellor. The reasons are the world economic situation, and everybody is confident that we will catch up with that (target)," Steiner told PTI on the sidelines of a function here.
At the same time, he said, he would not predict whether the number (euro 20 billion) would be achieved in 2013 or 2014. "It is something to do with the world and the situation of the world economy," he said.
"I think nobody is concerned about that. The real thing depends on the homework such as FTA (with European Union), reforms here and the debt crisis in Europe."
In 2012, Indian exports to Germany declined by over 7 per cent to euro 7 billion and imports shrunk by over 4 per cent to euro 10.4 billion, with trade surplus of about euro 3.4 billion in favour of Germany.
Germany is the 8th largest foreign direct investor in India. The flow of German FDI reached nearly euro 1.16 billion in 2011. During January-November 2012, German FDI to India reached euro 536 million.
Germany's total FDI in India was USD 5.1 billion in the period 2000-2012, constituting about 3 per cent of total FDI to India. There are more than 1,600 Indo-German collaborations and over 600 Indo-German joint ventures, the data showed.