New Delhi, September 16:

Bilateral trade between India and Germany would double in five years to exceed euro 20 billion from the current euro 10 billion, states a FICCI-KPMG report.

With new initiatives to boost greater investment flows and business based on an aggressive roadmap, trade between India and Germany is poised for a major paradigm shift, states a report brought out by the Federation of Indian Chambers of Commerce and Industry (FICCI) and KPMG.

With trade touching euro 20 billion by 2011, Germany would become India’s second largest trade partner after the US, from its current fourth position after the US, Britain and Japan.

Apart from sectors such as engineering, automotives, chemicals and pharmaceuticals, where both the countries are actively cooperating, new and emerging areas of infrastructure, construction, logistics, transportation, renewable energy, nano-technology, biotechnology, retail, financial services and defence should be explored to accelerate bilateral trade, the report stated.

The report also said joint ventures between local partners of both the countries would

also turn out to be instrumental in enhancing India-Germany trade. In order to encourage

more such partnerships, issues such as local regulation and taxes need to be addressed.

According to the report, German companies are upbeat about investing in India due to the

country’s galloping economy and burgeoning foreign direct investment portfolio coupled with skilled manpower availability at competitive costs.