German SME (Small and Medium Enterprise) sector has reportedly vowed to invest over Rs. 3,000 crore in India as part of the government’s ‘MakeIn India’ initiative and they are willing to establish new manufacturing plants as well.
- They have pledged Rs. 3,000 crore investments under Make In India Mittelstand (MIIM) initiative. This huge investment will therefore result in establishment of 15 new manufacturing plants, 6 expansion projects and 2 pilot projects in Maharashtra, Gujarat, Karnataka and Tamil Nadu.
- MIIM is basically an investment facilitation programme which was launched in September 2015 and is duly implemented by the Indian Embassy in Berlin with supports from the Department of Industrial Policy and Promotion (DIPP) and Investment and Technology Promotion (ITP), Division of the Ministry of External Affairs to attract investments from German SME (Mittelstand) companies.
- According to an official release by the Indian Embassy in Berlin, 26 German companies have committed to Make In India during the first 6 months of the programme with support from the MIIM programme. The last 6 months result shows that three German SME companies in the field of wind turbine technology, consumer appliance have announce that they would be entering into the Indian market with huge investments. On the other hand, five companies have reportedly successfully formed their Joint Ventures (JVs) and have integrated their Wholly Owned Subsidiaries (WOS) in India during the period.
- Simultaneously, five more companies are also in the process of establishing their JVs/WOS in the next few months. Member of German Parliament and Member of the Indo—German Parliamanetary Friendship Group, Dirk Wiese has said that the MIIM programme is going to play a key role in strengthening the bilateral ties as well as economic partnership between the two countries.