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Make in India Mittelstand (MIIM) Program
Local Fast Track for German Investments into India
During India’s participation as the Partner Country at the Hannover Messe 2015, Prime Minister Narendra Modi presented the MAKE IN INDIA programme to the German industry and promised coordinated efforts towards creating a pro-business open and welcoming environment for the German companies. Following the significant interest shown by German companies, especially the Small and Medium Enterprises (SMEs or the Mittelstand), the Embassy of India, Berlin with the support of the relevant Ministries of the Government of India started implementing a strategic, first of its kind investment support program: “Make in India Mittelstand!”(MIIM) to assist German SMEs or the Mittelstand companies in entering the Indian market in September 2015.
Since then MIIM programme has been supporting German firms by offering a wide range of business support services under a single platform through a built-in network of Programme Partners to support the participating companies with their services. Best-in-class partners have been selected with due dilligence and each of them brings a unique value into the MIIM Programme. MIIM Programme Partners include the MIIM Knowledge Partner (EAC-Euro Asia Consulting) for strategic, M&A, operational market entry support; MIIM Facilitation Partners (Invest India, Governments of Gujarat, Karnataka, Maharashtra, Madhya Pradesh, Rajasthan and Tamil Nadu & West Bengal); MIIM Tax & Legal Partners (Khaitan & Co. and Rodl & Partner) for legal & tax support; MIIM Technology Partner (Global Innovation & Technology Alliance - GITA) for technology collaboration services; and MIIM Incubator Partner (German Centre Delhi.Gurgaon) for location support, MIIM Banking Partners (State Bank of India, Deutsche Bank and DEG) for financial services support and MIIM Partner Chamber (Indo-German Chamber of Commerce-IGCC) and Deutsche Messe and TUV Rheinland as Associate partners.
MIIM Initiative of the Embassy of India has proved to be a milestone in improving the ‘Ease of Doing Business’ in India. MIIM has been designed to act as the “Local Fast Track” for German companies planning to invest in India. MIIM program has been instrumental in preparing the German companies for their smooth market entry into India. Since inception in late 2015, the programme has achieved encouraging results. Currently, MIIM program is supporting 72 German SMEs with a declared investment of about Euro 650 million and creating employment opportunities in India of about 4000 workforce. This will translate in 31 new manufacturing Plants, 11 Expansion projects and 2 Pilot projects in short to medium term.
Under the MIIM Program, companies are also supported through regular workshops to prepare the companies well in advance before their market entry into India. The workshop topics are picked up in joint consultation with the companies. The topics include Economics of Localisation and Sourcing in India, Logistics and Supply Chain Challenges, Location Assessment and Investment Zone Options, Successful HR Management, Best Manufacturing Practices in India, Company incorporation & Taxation issues, Transfer Pricing & Custom Duty & Procedures, Financing Options, Pricing Strategies & Distribution Channels, Growth Financing, etc. So far 10 dedicated workshops have been conducted for the German Companies.
Further, to improve the access and make it easier for companies to have valued information right at their desks, regular webinars are being conducted with the member MIIM companies. 5 Webinars so far which include topics like Goods & Services Tax, Supply Chain and Localisation, Indirect & Direct tax topics, etc. Mission also provides opportunities to the State Facilitation Partners to present the investment opportunities in their state during many webinar Sessions.
Under the MIIM program, the focus has been also on reaching out to sector specific industries and conducting round table discussions with the industry associations to present them the growth and investment outlook in specific sector and encourage them to join the MIIM program.
The MIIM member companies view this program as an efficient door opener and a unique one stop solution for their business needs. The program has generated a lot of comfort and ease for the German Mittelstand companies intending to localise in India. Amongst the MIIM companies, many have successfully entered into India through the support of the program and around 40 companies are at advanced stage of their market entry into India. For example, Senvion , a German Wind Energy company and MIIM member was assisted for assessing the location Greenfield and brownfield options in Maharashtra and Gujarat. In 2016, Senvion acquired the wind turbine nacelle production facilities and infrastructure, complete product portfolio suite, wind turbine inventory and the service operations of Kenersys India Private Limited, Baramati (Maharashtra). MIIM team assisted Verbio, German Manufacturer and Supplier of biofuels, to select state for pilot plant and also assisted for company Incorporation in India. Moreover, MIIM team connected Verbio to key government stakeholders to ensure policy transparency. Dr. Wiesner Steuerungstechnik GmbH, a typical German Mittelstand manufacturer of production and test equipment, launched its first Make in India product reflecting the cooperation between the German and the Indian company and showcasing the perfect example how Make in India can work and lead to impressive results. MIIM program had assisted the company in its expansion in in Sompura Industrial Area of Karnataka. There are many more similar successful stories of the MIIM initiative.
The MIIM program has gained much applause from the German Government which has lauded the Make in India Mittelstand (MIIM) programme of the Embassy of India, Berlin as an extraordinary initiative towards the overall Indo-German Business relations and has termed it as a perfect addition to efforts of Indian and German Government towards facilitation of German Companies investing in India. German Federal Ministry of Economics & Energy has on many occasions highlighted that initiatives like these are strong reflection of the Government of India’s continued efforts towards creating a business friendly environment for German companies in India and has thanked the Embassy for the extraordinary commitment to the India-Germany economic cooperation.
(More details about the MIIM program can be obtained from MIIM website : http://www.makeinindiamittelstand.de )