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Nexia Ebner Stolz

International

M&A India Desk: Investing in and from the world's fastest growing economy

Ac­cor­ding to the IMF, In­dia re­mains one of the fas­test gro­wing eco­no­mies in the world. The­re­fore, In­dia is an at­trac­tive in­vest­ment de­sti­na­tion for Ger­man com­pa­nies. Ger­many is In­dia's lar­gest tra­ding part­ner in Eu­rope and the first lar­gest di­rect in­ves­tor in In­dia since 2020. At the same time, as a high-tech lo­ca­tion, Ger­many is an in­cre­asin­gly im­port­ant stra­te­gic lo­ca­tion for In­dian com­pa­nies.

Ger­many in­ves­ted over $12.2 bil­lion in In­dia bet­ween 2000 and 2020. The main areas of in­vest­ment were trans­por­ta­tion, elec­tri­cal equip­ment, me­tall­ur­gi­cal in­dus­try, ser­vices (es­pe­ci­ally in­surance), che­mi­cals, con­struc­tion, trade and au­to­mo­bi­les. There are cur­rently more than 1,600 Ger­man-In­dian coope­ra­ti­ons and 600 joint ven­tures on the In­dian mar­ket - and the trend is in­cre­asing. Ger­man in­ves­tors are ban­king on the growth po­ten­tial of the In­dian mar­ket and so­me­ti­mes see the ac­qui­si­tion of an In­dian com­pany as an op­por­tu­nity to quickly es­ta­blish them­sel­ves in the In­dian mar­ket. Howe­ver, star­tups and other com­pa­nies are also in­cre­asin­gly using the ex­per­tise in the IT sec­tor in In­dia to ex­pand their mar­ket.

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In­dian com­pa­nies are ex­pan­ding in in­ter­na­tio­nal mar­kets in view of the eco­no­mic growth in In­dia - es­pe­ci­ally also to gain ac­cess to the la­test tech­no­lo­gies, at­trac­tive mar­kets and new cu­st­omers. With its cen­tral lo­ca­tion in the he­art of Eu­rope and as a high-tech lo­ca­tion, Ger­many is a pre­fer­red tar­get for start-ups and ac­qui­si­ti­ons. As a re­sult, In­dian com­pa­nies are cur­rently ma­king tar­ge­ted ac­qui­si­ti­ons in Ger­many and Eu­rope. In ad­di­tion to the high qua­lity of the Ger­man in­fra­struc­ture, In­dian in­ves­tors app­re­ciate the fa­vor­able en­viron­ment for re­se­arch, de­ve­lop­ment and in­no­va­tion, the po­li­ti­cal sta­bi­lity and the low le­vel of cor­rup­tion as well as the high le­vel of edu­ca­tion of the work­force.

Wha­te­ver the in­te­rests at stake: In­vest­ments and busi­ness re­la­ti­ons from and to In­dia not only hold great po­ten­tial, but also, due to a for­eign cul­ture and dif­fe­rent le­gal sys­tems, some pit­falls that can be avo­ided by con­sul­ting ex­perts.

We ac­com­pany you in your in­vest­ment ef­forts in In­dia and vice versa and sup­port you with our M&A In­dia Desk in the areas of au­diting, tax ad­vice, le­gal ad­vice and cor­po­rate ad­vice. In ad­di­tion to pro­fes­sio­nal ex­per­tise, our bi­lin­gual team also brings the ne­cessary in­ter­na­tio­nal ex­pe­ri­ence to the ta­ble, ma­king us a strong part­ner at your side in In­dia, just as our In­dian cli­ents be­ne­fit from our ex­pe­ri­ence in cross-bor­der pro­jects.