German companies looking for investments in the region
are increasingly favouring India over China as an investment
destination, as they view intellectual property rights
(IPR) protection and a sound legal framework in India
as a major advantage.
Batra, managing director, Horizon GMBH, who is a member
of a visiting German delegation told reporters that
many German companies in China were facing problems
due lo lack of IPR and some were planning to relocate.
"India has an edge over China. It offers IPR protection
and a stronger legal framework. Many German companies
are planning to invest in India."
also said China was known only for as a low-cost producer,
with inferior quality, while India was a quality producer
with moderate costs compared to the international level.
"Companies that are looking at quality and not
cheap products, are strongly considering India,"
to him the German SME sector was also looking at India
to set up second manufacturing facilities and joint
ventures. He said his own company was keen to have an
data showed that German companies operating in China
not only facing stagnation in growth, but also experiencing
slowdown, while, trade with India had grown almost 50
per cent to €10 billion in 2006.