Indo- German Business forum sees nations come together

June 23, 2015 2:20 pm

 VDMA organised the Indo German Business Forum along with the three Knowledge partners ASA & Associates LLP, BDB India Pvt. Ltd., and the Euro Asia Consulting. The event was organized on the 28th April at Hotel Courtyard by Marriott, Pune, on 29th April at Hotel Taj Vivanta, MG Road, Bengaluru and on 30th April at Hotel Le royal Meridian, Chennai.
Indo-German trade in engineering sectorIn 2013, the trade between India and Germany was Euro 16.1 billion and in 2012 it was Euro 17.4 billion. Indian imports from Germany in 2013 were Euro 9.2 billion. The exports from India to Germany attained a value of Euro 6.9 billion in 2013. In 2014 the total import of machinery from Germany reached a volume of Euro 2.5 billion.
Manufacturing – the future growth engine of IndiaIndia’s economy is now beginning to recover and is expected to grow in the coming years.  With new government coming in control with favourable policies and investments, the outlook reflects stronger sentiment.  Positive sentiments reflect through steps taken by government to develop industrial corridor, infrastructure – roads and ports, urbanization, building smart cities and restoring investors’ confidence to enhance (FDI) foreign direct investment.
Indian government has laid emphasis on future growth of manufacturing by initiating National Manufacturing Policy with a target to achieve 25 per cent share of GDP and creating 100 million additional jobs in manufacturing sector by 2025.  Indian government will have to develop specific actions to rejuvenate the manufacturing sector and grow at 14 per cent CAGR for next 10 years to achieve the target.
Direct and indirect tax budget proposalThe reduction in tax rate from existing 25 to 10 per cent son royalties & technical service fee payable on transfer of technology would encourage manufacturing and eventually promote the ‘Make in India’ initiative of the Indian government.
Introduction of Goods & Service Tax (GST) from April 2016 would be a game changer for the manufacturing sector as it would bring about significant cost efficiencies by integrating the entire tax structure into one single piece of legislation. Increase in threshold from ` 50 to ` 200 million of domestic transfer pricing transactions would result into lesser compliances for companies in small and medium segment (SMEs).