Press Release

27 September 2016

German Mittelstand to invest 500million euros in India. Financial institutions join MIIM 2.0 initiative

1. The MIIM programme has elicited a declared investment of about Euro 500 million and creating employment opportunities in India of about 3500. Encouraged by the overwhelming response received by the MIIM Programme from the German business community and its future potential in further increasing investments from Germany, the Embassy of India, Berlin continues the Make in India Mittelstand (MIIM) programme into its second year. MIIM 2.0 was officially launched during the MIIM Exchange Platform organised at the Embassy today. Encouraged by the significant results achieved by the MIIM initiative, the Deutsche Investitions-und Entwicklungsgesellschaft (DEG), a subsidiary of the state-owned German Development Bank KfW, will have increased participation in the MIIM Programme. The focus of the MIIM programme during its second year will be to extend its reach in the Mittelstand network, and to ensure provision of a comprehensive list of services. MIIM has hence three new Programme Partners including Deutsche Bank (as Banking Partner), Deutsche Messe, Hannover (as Exhibition Partner) and TÜV Rheinland (Associate Partner) for technical certifications. In addition the MIIM is extending its sectorial approach through industry associations such as VDMA, VCI (Verband der ChemichenIndustrie), BVE (Bundesvereinigung der DeutschenEmuerungsindustrie), ZVEI (Die elektronikindustrie), ZGV (Der Mittlestandverbund), VDB (Verband der bahnindustrie) and Bundesverbang M&A among others which have been associated with MIIM through the last year.

2. The MIIM an investment facilitation programme launched in September 2015 by the Embassy of India to facilitate investments by German Mittelstand (SME) companies. MIIM has successfully completed one year and has established itself over the year as an integrated market entry facilitation platform for German Mittelstand companies.

3. Frau Brigitte Zypries, Parliamentary State Secretary, German Federal Ministry of Economics & Energy conveyed the Government of Germany’s full support to the Make In India Mittelstand Programme to bring new medium sized German companies to invest in India. She highlighted the focused approach of a programme such as the MIIM which is helping in translating into on ground improvement of relations between countries, helping both countries build a better stake in each other’s progress and growth.

4. Ambassador of India to Germany, Gurjit Singh emphasized the importance of the facilities being provided by the MIIM programme and motivated more German companies to use this mechanism to engage with India. He underlined that infrastructure, including Railways and Smart Cities would be a major focus of the new economic engagement between India and Germany. Ambassador Singh added that German companies could evaluate the option of forming close partnerships with the Indian MSME companies to participate in the Government’s major flagship programmes and investment programmes with the support of Make in India Mittelstand programme. Ambassador Singh also emphasised the need for Germany to look at India as an innovation hub focusing on R&D Centres. He emphasized that opportunities were available to Make in India, but also to Make in India for the world. He spoke about his visits to small German cities to meet the Hidden Champions and was confident that they will soon be in India in larger numbers.

4. Third Secretary (Economics), Soumya Gupta presented the first year results of the MIIM programme. She emphasized that even though German Mittlestand is known to be conservative in its approach to new markets, the German Mittlestand had given an unprecedented and unequivocal positive response to the MIIM. The companies echoed their positive appreciation of the business environment in India and indicated their steady growth of German investments in India. The MIIM programme has helped to expedite investment announcements, incorporations, expansions/JVs etc of the German Mittelstand across sectors of the Make in India programme, especially in the renewable energy sector, a priority for the Government of India. Two MIIM Companies,Senvion and Uniper had recently announced their India investment plans in the energy sector.

5. The participants encouraged new companies to join the MIIM programme. They felt encouraged by the presentations on ground issues such as the Goods and Service Tax, which would be a major game changer in their investments in India. The panel discussion provided insights into the possibilities for financing investments for German Mittelstand in India. EAC Consulting, the Knowledge Partner for the MIIM Programme also presented a study on their findings on the top industrial states in India. A special brochure of the Make in India MittelstandProgamme MIIM 2.0 was presented on the occasion.

6. The programme would continue to offer capacity building workshops and webinars for selected companies to brief the investors on different aspects of doing business in India and to facilitate their investments. The programme will certainly see more interest getting generated towards India among German SME companies. MIIM welcomes new German Mittelstand companies to enter India and those in India to further scale up their engagement in India.

7. The participants also greatly benefited from the Workshop on India Investment Climate 2016 organised thereafter by MIIM’s Programme Partner DEG which included live case studies on experiences of German Mittelstand companies in India.

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