Germany keen on investment in India’s Railway Sector and Industry

Rainer Schmiedchenकोलकता Kolkata (KOAA): A 20-member delegation from Germany will arrive in the city next week to meet the officials of Eastern Railway.

The team will explore and assess the possibility of future partnerships and collaborations with companies engaged in the railway sector here, German Consul-General Rainer Schmiedchen said today.

“A delegation of 20 businessmen from the railway sector of Germany will arrive on Wednesday for official talks with Eastern Railway. They will see production sites. The delegation will have officials from the German government, the economic ministry and companies,” Schmiedchen said.

He was speaking on the sidelines of an Indo-German business conclave organised by ASSOCHAM and the German Engineering Federation (VDMA).

In January, the German engineering industry witnessed an over 6 per cent rise in orders compared with the same period a year ago.

Flow of orders to Germany grew 2 per cent compared with a 5 per cent contraction of orders to the Eurozone .

According to Rajesh Nath, managing director of VDMA’s India liaison office, the challenge for the German mechanical engineering industry would be to reduce costs and maintain profitability in the face of increased competition from low-cost countries.

In 2013, Germany exported machineries worth 2.8 billion euros to India. Major demand came from power transmission, textile machinery, machine tools, valves, air handling system sectors.

There are 1,400 German companies in India with around 600 in the engineering sector. Of that, close to 300 have manufacturing bases across India. There are 140 German companies operating in Kolkata.