Indias Largest Trading Partner in 2024
India trading partners Germany continues to hold its position as one of India’s most influential and trusted economic allies. In 2023–24, bilateral trade between India and Germany reached US$ 26.10 billion, further strengthening the long-standing economic ties between the two nations.
Bilateral Trade Performance: FY 2023–24
- Total bilateral trade: US$ 26.10 billion
- Indian exports to Germany: US$ 9.83 billion
- Imports from Germany to India: US$ 16.27 billion
- Germany’s FDI in India: US$ 14.89 billion (April 2000 – Sept 2024)
- Germany’s rank in Indian export destinations: 10th (April–Oct 2024)
- Germany’s rank as an investor: 9th largest foreign investor in India
Biggest trade partner of india
India exported 5,274 distinct commodities to Germany in FY24, showing the diversity and strength of its manufacturing and industrial base.
Top exported items include:
- Machinery, nuclear reactors, boilers – US$ 1.5 billion
- Electrical machinery & equipment – US$ 1.2 billion
- Organic chemicals – US$ 821.04 million
- Vehicles (excluding rail/tram) – US$ 623.91 million
- Articles of iron and steel – US$ 450.52 million
These categories highlight India’s growing capabilities in high-tech and value-added sectors, beyond traditional exports like textiles and gems.
Strategic Sectors & Industrial Cooperation
Germany’s interest in India extends beyond trade—it also includes technology transfer, R&D, clean energy, and green mobility. The “Make in India” initiative, coupled with Germany’s engineering excellence, has led to several joint ventures in sectors like:
- Automotive and auto components
- Renewable energy (especially solar and hydrogen)
- Pharmaceuticals and life sciences
- Engineering goods and capital machinery
Germany’s Foreign Direct Investment in India
biggest trade partner of india As of September 2024, Germany has invested a cumulative US$ 14.89 billion in India. German companies have established over 1,800 business entities, ranging from medium-sized enterprises (Mittelstand) to multinational giants like Siemens, BMW, Bosch, and BASF.
These investments create employment, promote innovation, and boost the overall ease of doing business in India.
Global & Bilateral Importance
Germany is not only a strong bilateral partner but also plays a crucial role in shaping India’s trade with the European Union (EU). The two countries often align on international platforms like the G20, United Nations, and World Trade Organization (WTO).
Their partnership focuses on:
- Sustainable development
- Climate change mitigation
- Digital transformation
- Supply chain resilience
Conclusion
With a steady increase in trade, investment, and strategic cooperation, Germany has firmly established itself as Indias largest trading partner in the European Union and one of its most vital global allies. The continued growth in exports, diversification of sectors, and robust FDI inflows suggest that India-Germany relations will only deepen in the years to come.
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Last modified: August 3, 2025
