Germany is located in Central Europe, bordered by several countries. It has a population of over 80 million people and has 16 federal states. Germany has the fourth largest economy in the world and is the largest in Europe. It uses the Euro as currency. Some of Germany's largest industries are automobile manufacturing, machinery, and chemicals. Free higher education and a high employment rate are also characteristics of Germany. Culturally, Germans value punctuality, order, and formality in business. Maintaining clear communication and following up on agreements are important when doing business in Germany.

1. GERMANY
Country Presentation
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Group 3:
Amrita C
Anna S Lal
Jaiji thomas
Meenakshi Kanakaraj
Sourav
Shridhar

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Air travel :
6760Kms ~ 7.5 hours flight
 Located in Central Europe, bordered by Poland, the
Czech Republic, Austria, Switzerland, France,
Luxembourg, Belgium, the Netherlands and Denmark. 16
federal states.
 The Rhine, the Danube and the Elbe rivers, combined
with Germany's central location in Europe and its access
to the North Sea, allowed the country to become a
leading exporter
•Germany’s main geographic challenge is preserving its
territorial unity and maintaining a political balance between
regions within the country.

3. Einführung
FREE EDUCATION AND HIGH LEVEL OF EMPLOYMENT
16 states abolished tuition fees and 75.90 percent
employment rate(2019 data) .
ECONOMY
Fourth largest economy in the world and significant
challenges to sustained long term growth.
CURRENCY
Euro. 1 Euro=77.32 INR (July 22, 2019)
LARGEST CAR PRODUCER
Volkswagen, Mercedes, Audi and BMW are the top
selling brands.

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Brief historic snapshot
•Ununited Germany: Rarely been united and was divided into hundreds of small states.
•Medieval Germany: As France and England began their centuries-long evolution into united nation-
states, Germany witnessed series of wars. The Protestant Reformation resulted in population being
Roman Catholic, Lutheran, and Calvinist.
•Peace of Westphalia: The Peace of Westphalia of 1648 left German-speaking Europe divided into
hundreds of states. During the next two centuries, the two largest of these states: Prussia and Austria:
jockeyed for dominance.
•Revolutions for Unification and Democracy: Pressures for German unification grew. Demand for
uniform laws and a single currency came up. Then monarch King Friedrich Wilhelm IV of
Prussia, rejected it.
•Otto von Bismarck: In 1871, following the Franco-Prussian War, Germany was unified and
transformed into an empire under Emperor Wilhelm I, king of Prussia.
•Prussian hegemony: The Reichstag(Parliament), elected through universal male suffrage, supreme
power rested with the emperor and his ministers, who were not responsible to the Reichstag.

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Brief historic snapshot (Cntd..)
•The World Wars: In World War I, Germany’s aims were annexationist in nature and foresaw an
enlarged Germany, with Belgium and Poland as vassal states and with colonies in Africa. German
military strategy failed. The Treaty of Versailles imposed punitive conditions on Germany, including the
loss of territory, financial reparations, and a diminished military. These conditions set the stage for
World War II.
•Weimar Republic: Weimar Republic (1919–33), was established with a constitution that provided for a
parliamentary democracy in which the government was ultimately responsible to the people. By mid-
1933 it had been destroyed by Adolf Hitler, its declared enemy since his first days in the public arena.
•Hitler as chancellor: Leading conservative politicians formed government with Hitler as chancellor.
They intended to harness him and his party (the National Socialist German Workers’ Party, or Nazis),
now the country's largest, to realize their own aim of replacing the republic with an authoritarian
government. He established a totalitarian regime.
•The Postwar Era and Unification: In the aftermath of World War II (1939–45) and following
occupation by the victorious powers (the United States, the Soviet Union, Britain, and France), Germany
came to consist of two states. Within two decades of defeat, it had become one of the world's richest
nations, with a prosperity that extended to all segments of the population.

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Why Germany is special?
•Automobile makers: Car companies like Volkswagen, Audi, BMW and Mercedes Benz were all birthed in Germany.
•Berlin wall: The capital of Germany has a story behind it or more thoroughly put; it’s walls. The famous wall which has been a
hotspot for tourists divides the Eastern side of Berlin from its Western side.
•Oktoberfest: It has its origins in Germany. Oktoberfest is the largest beer festival in the world spanning over a fortnight.
•Beer: Germans love their beers. Surprisingly, Germany has an age-long law which permits the use of only four edible products
in the production of their beers- more like 2500 types of beers. When it comes to the brewing of beer, no other European
country does it better than Germany.
•Bread: It is a staple food for Germans. Germans eat bread with or after almost all their meals. German bakers all over the
world are always in demand.
•Bureaucracy: German government officials control the lives of their citizens. Breaking any of the laws leads to payment of
fines. Germans aren’t complaining. It makes them one of the best-behaved citizens in the world.
•Free education: Even higher education is free in public colleges and universities. It is even free for international
students.
•Book publisher: Germany is one of the world’s leading book nations. Publishing around 94,000 titles every year.
•Green economy: Germany is a leader in climate and energy policies – it made a decision in 2011 to decommission all nuclear
power stations

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TIES WITH INDIA
•Convergence on global issues: India and Germany work together within the G4 framework for UN
reforms.
•Sister States: Some States and Cities of India and Germany have entered into twinning
arrangements.
•Facilitating Trade: A Fast-Track System for German companies has been set up in Department of
Industrial Policy and Promotion (DIPP), as agreed between the two sides at the 3rd Inter
Governmental Consultations in 2015.
•Culture: India and Germany have a long tradition of academic and cultural exchange. There is
interest in Germany in Indian dance, music and literature as well as motion picture and TV industry.
•Indians in Germany: There are nearly 1.5 lakh people of Indian origin (2017 figures) in Germany.
The Indian diaspora mainly comprises of professionals, technocrats, businessmen/traders and
nurses.

8. INDIA-GERMANY
BILATERAL RELATIONS
 India’s largest trading partner in
European Union.
 28th position amongst trading
partners of Germany.
 Major exports to Germany are
cotton and textile products,
leather, chemicals and
pharmaceuticals.
Imports to India are machinery,
aircrafts, metal goods, synthetic
materials.
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•7th largest FDI investor in India
• 2nd largest partner in technology
collaborations
•Mercedes benz and Volkswagen
inaugrated its plant in chakan,
Maharashtra.
•According to FDI Markets, India
has initiated 40 projects in
Germany since 2003, 20 of which
are in the software and IT sectors.
•India-Germany Defense Cooperation
Agreement (2006) provides a framework
for bilateral defence cooperation.
• Indian companies either acquiring
firms or starting their own subsidiaries in
Germany include Ranbaxy, Samtel, NIIT,
Wockhard, etc.
•More than 150 joint S&T research
projects and 70 direct partnerships
between the Universities of both
countries.
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USD 24.21Bn
Trade
Investments
https://tinyurl.com/yxk92utv

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IMPORTS AND EXPORTS

10. Make In India
Mittelstand!
(MIIM)

11. RECENT INVESTMENTS
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• Liebheer – refrigerator manufacturing unit – investment $73Mn
•Deutsche bank – accquired Quantiguous solutions
• Siemens – Digitalisation platform ‘Mindsphere’ in Pune. India will become top five
global markets for siemen.
•Thyssenkrupp produce cold rolled grain oriented steel (CRGO) for the first time in
India.
•Union ministry for housing and urban affairs and the German development agency
signed MOU to develop sustainable urban development. And also contribute
$9.5Mn for the three year project.
http://www.makeinindiamittelstand.de/

12. Business Culture
•Corporate social responsibility
•Planning
•Punctuality:
-Do not turn up late for an appointment or when meeting people.
-If you are going to be even slightly late, call ahead and explain your
situation.
-Be five to 10 minutes early for important appointments.
•Hard working
•Follow rules and regulation

13. Business Culture (Conti.)
•Gift giving :
-Do not give red roses as they symbolize romantic intentions.
-Do not give carnations as they symbolize mourning.
-Do not give lilies or chrysanthemums as they are used at funerals.
-Gifts are usually opened when received.
•Business dress code:
-Businessmen should wear dark colored.
-Women also dress conservatively, in dark suits and white blouses.
• Separation of public and private spheres

14. Factors Germany India
Languages Spoken 95% of the population speaking German,
Sorbian, Frisian
Around 1652 languages
Religions Christianity, Islam(4%), Judaism and
Buddhism (Together 1%)
Majorly Hindu and Muslim followed by
Christians and 2% unspecified
Major Celebrations • September: Oktoberfest
• October 3 – German unity day
26th January- Republic Day
15th Aug- Independence day
2nd Oct- Gandhi Jayanti
Different ethnicity 91.5%- Germans
2.4%- Turks
6.1%- Greek, Italian, Polish and Russian
72%- Indo – Aryans
25%- Dravidians
3%- Mangoloid and Minority groups
Different social
norms
Naming conventions
Greetings are formal. Use a person's title and
their surname until invited to use their first
name. You should say Herr or Frau and the
person's title and their surname.
Naming conventions
Greetings with “Namaste”
Communication in local language
Cultural Distance
https://www.commisceo-global.com/resources/country-guides/germany-guide

15. FACTORS GERMANY INDIA
Legal system Civil law system Common law
Government type Federal republic
Currency Euro Indian rupee
Monetary Association Deutsche Bundesbank eurosystem Reserve Bank of India
Judicial Branch Federal constitutional court Supreme court
Government Policies Governs the country
Administrative Distance
https://www.nationmaster.com/country-info/compare/Germany/India

16. Factors Germany India
Physical Remoteness Countries in different continents ( Distance of 6760kms between them)
Common Border No
Sea or river access Yes
Size of the country 357,386 km sq 3.287 millions sq km
Natural Resources Timber, Natural gas, Coal, Lignite,
Uranium, Iron ore
Coal ,Iron ore, Manganese ore, Mica
Difference in climates Moderate; no longer periods of cold
or hot weather
varies from tropical monsoon in
south to temperate in north
Weak Transportation and
communication links
No
Geographic Distance
https://www.nationmaster.com/country-info/compare/Germany/India

17. Factors Germany India
Origin of Economic
Reforms
Economic reforms started in 1948 Economic reforms started in 1991
Economic size Ranks 4th (GDP- $3,714 trillion) Ranks 7th (GDP- $2.76 trillion)
Difference in
Consumer Income
Per capita disposable income stood at 34,294
USD in 2016
India's per capita disposable income stood at
1,44,429 Indian Rupee ($2,106.64) in 2018
Unemployment rate 3.1% 8.5%
Population 8.28 crores 133.92 crores
Exports and Imports Imports from Germany- Machinery, Vehicles,
Pharmaceuticals, chemicals.
Exports to Germany- Computer and electronic
products, electrical equipment, Textiles, rubber
and plastic products.
Imports from China- electrical machinery and
equipment, organic chemicals, nuclear reactors,
boilers, machinery
Exports to China- petroleum products, gems and
jewelery, transport equipment, other raw materials
and machinery
Economic Distance
https://www.nationmaster.com/country-info/compare/Germany/India

18. INDIA GERMANY
One of the largest economies in the word
with robust and sustainable GDP and FDI
growth.
Largest economy in Europe with a 22% share
of Eurozone GDP and access to 454 million
consumers.
Skilled manpower availability of competitive
costs.
Worlds’ 2nd largest exporter – ‘Made in
Germany’ is a seal of quality recognized
around the word.
Rich base of mineral and agricultural
resources and other raw materials thereby
reducing the cost of inputs
Located in the heart of Europe and shares
borders with every major economy in the
central Europe
Sophisticated financial sector – Standardized
and regulated
High sophisticated infrastructure motorways,
railroads and telecommunications network
ensure that goods and IT – services are
delivered quickly and reliably
BUSINESS ENVIRONMENT COMPARISON

19. INDIA GERMANY
Government’s proven commitment to the
deregulation process, lifting up of import
duties and tax curbs
Most innovative nation in Europe
Well balanced packages of financial incentives International capital market, a liberal and
stables social market and financial services are
its distinct advantages
Growing consumerism, with increasing affluent
and growing middle income
The WEF ranks Germany 3rd in its Business
Competitive Index
CONTINUED…

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Country Risks
• Business defaulting risk: Germany is ranked A2 by Coface. It has downgraded from A1 due to the
car production declining from 2017 to spring 2019 and GDP growth declining from 1.5% to 0.8%.
• Faced with international uncertainties (trade disputes with consequences for the value chains in which
the country is highly involved, Brexit, sanctions against Russia, concerns about several major emerging
economies), confidence has waned among business leaders since peaking at the end of 2017.
• A fragile Grand Coalition(Political risk): Angela Merkel resigned as CDU leader in December 2018,
but intends to see her term out, i.e. until 2021. Much will depend on the upcoming regional and
European elections, the SPD's attitude when reviewing the coalition agreement at the end of 2019 and
the stance of the new CDU presidency.
• Declining working population from 2020 onwards, despite immigration.
• Capacity constraints, insufficient investment and venture capital limit productivity gains.
• Paper and textile clothing faces high risk in terms of sector. Chemical, construction and pharmaceutical
are the low risk sectors.
https://www.coface.com/Economic-Studies-and-Country-Risks/Germany

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Insider Advice
• Keep it formal. Even people who have worked together for years often use the polite ‘Sie’ form of
address. Using the familiar form, ‘du’, would be a serious gaffe.
• Respect German Hierarchies: It’s essential to remember to never bypass a person to reach someone
of higher status just to make a deal go through quicker. Use titles and last names when speaking to a
person you don’t know as a friend.
• Follow Up with German Associates After a Meeting: Within 24 hours you should send a recap with
in-depth details of meeting minutes, topics discussed, deals struck and contracts that need to be
signed.
• Avoid the unknown – Cross-cultural research has shown German people often have relatively high
levels of discomfort with uncertainty and ambiguity. You may notice a wide range of laws, regulations
and processes which provide a degree of security, certainty and predictability.
• Communication in Germany is very direct and rather formal. It is common to express criticism openly,
keep small talk really “small” and write down agreements, rules and responsibilities in extensive
contracts.
https://www.londonschool.com/lsic/resources/blog/insiders-guide-doing-business-germans/