The German Footwear brand Von Wellx has decided to shift its branches from China and set in India. This is all happening because of COVID-19 situations and the aggression of the world for China. This German footwear brand is going to setup in Agra city of Uttar Pradesh under Yogi Aditya Nath.
Germany is China’s biggest trading partner and technology exporter in Europe, and the amount of Germany investment in China ranks second among European countries. China is Germany’s largest trading partner, superseding the United States of America since 2017. But right now, Germany does not be with China any more in terms of trade and any political, social, economic parameters, until these relationships would be maintain again as usual.
The German company has 20 manufacturing units with its 12 licenses across the globe, including Europe, with products selling in over 85 countries. Casa Ever Gmbh, the owner of Germany-based healthy footwear brand Von Wellx said, footwear is one of the top labour intensive carry raw material work in the world, that mainly helps to maintain the economic stability of a country and we think that India is the best country to generate profit for these two countries( India and Germany ).
In his words he said, Germany will be shifting its entire shoe production of over 3 million pairs annually investment of Rs110 crore. A new manufacturing company will be set up with a production capacity of over millions pairs in Uttar Pradesh in collaboration with Iatric Industries Pvt Ltd understanding with the state government.
Iatric Industries already has a capacity of 5 lakh pairs for Casa Everz Gmbh specifically under which it produces Von wellx Germany-5 zones Men’s and women’s shoes apart from its other product capacities of another 5 lakh pairs, he added. Now a new company will be set up with a production capacity of over 3 millions pairs. We have a 2-year time horizon to reach that capacity after all the necessary co-operation with the Uttar Pradesh govt.
Benefits to India and Uttar Pradesh
- The main benefit that India will get from German govt. is the economic setup for India.
- Indian GDP will increase due to this shifting of footwear company to India.
- This decision will help to increase “Make in India” parameters.
- Also the Youth of India will get employed due to the establishment of these industries and companies.
- India govt. will also provide special reservations to the youth of Uttar Pradesh in terms of employment.
- These kinds of decisions provide special statuses to the particular area in which these international companies or brands will setup.
India Germany Trade Relationships
- India-German trade is the largest one in Europe. In between these two countries, Bilateral trade value is at $ 17.56 billion in 2016 and has been increased to US $ 21.96 billion.
- It is the seventh largest foreign direct investment in India since January 2000.
- Total German FDI from April 2000 – September 2017 announced to US $ 10.65 billion.
- India exports were worth US $ 8.67 billion to German govt. and imports were worth US $ 13.25 billion.
- Germany-China Bilateral trade is $200 billion more than Germany-India trade, but now it will goes on decreasing because German footwear company brand is going to shift from China to india.
- Indian massive economy can trade with German economy of about $50-70 billion in upcoming time.
- Recently in 31 october 2019, German Chancellor Angela Merkel visited India for the fifth round of Inter-Governmental Consulations ( IGC ).
India- German Major Turning Points about Trade
- India and Germany have a ‘ Strategic Partnership’ since 2001.
- Intergovernmental Consultations ( IGC ) in 2011 at the level of Governments which allows for a comprehensive review of cooperation and identification of areas of engagement. India is amongst a select group of countries with which German govt. has such a dialogue mechanism.
- India has intergovernmental mechanism with just four countries Germany, Saudi Arabia, Russia and Japan.
- In this Intergovernmental meeting, India and Germany signed 17 MoUs in areas including migration, Ayurveda and Yoga, occupational diseases, maritime technology and start-ups.
- India-German govt. also exchanged five joint declarations of intent which included cooperation on strategic projects, partnership for green urban mobility, development of AI and cooperation to prevent marine litter.
- Germany will invest 1 billion Euro for green urban mobility in India.
- Cooperation with Germany in terms of Defence ; Indian govt has invited German govt. to take advantage of opportunities in defence sector in the upcoming defence corridors in Uttar Pradesh and Tamil Nadu.
- The countries agreed to work on bilateral and multilateral platforms to counter terrorism and extremism.
- Cooperation of India with Germany in terms of Economic sector ; To deepen efforts to restart negotiations between the European Union and India on the bilateral trade and investment.
- INDIA-EU Bilateral Trade Investment Agrement ; It is a free trade agreement between India and EU, which was initiated in 2007. Even after a decade of negotiations, India and EU have failed to resolve certain issues which have led to a deadlock.
- Science and Technology ; Indian and German govt. are ready to conduct joint research on the development and use of artificial intelligence to identify best possible approaches on cyber security.
- Merkel is the first foreign leader to visit India after Jammu and Kashmir was officially bifurcated into two Union Territories on October 31.
- During her visit, Merkel met Prime minister Narinder Modi and President Ram Nath Kovind.
- India also has invited Germany to express its desire to join the international Solar Alliance.
Facts about Germany
- The common name of Germany is ” Federal Republic of Germany “.
- It is a country in Central and Western Europe lying between the Baltic and North Seas to the north and the Alps, Lake Constance and the High Rhine to the south.
- German area is bordered with Denmark to the North, Poland and the Czech Republic to the East, Austria and Switzerland to the south, France to the southwest, and Luxembourg, Belgium and the Netherlands to the West.
- Germany is also called as Power House of Europe, with 84 million inhabitants, it is the most populous state lying entirely in Europe, as well as the most populous member state of the European Union.
- Europe in 2018 had a nominal GDP of $23 trillion, out of which, German govt. had about $4.0 trillion, which is the highest among all other European countries.
- Germany is India’s Largest trading partner in Europe.
- India and Germany are members of G-4 along with Brazil and Japan.
- Both these two countries are also the members of the Financial Action Task Force ( FATF).
This is very precious opportunity for India-German to develop very close relatioships with each other and also helpful to maintain the GDP’s of both the countries, and also helpful to produce employment in India.