Despite the declining imports of machine tools into India and consumption patterns too showing a similar trend, German companies have reinstated their commitment to the Indian Machine Tool exhibition by way of an impressive participation at the Imtex-2001. With around 115 companies, this is the largest participation ever at Imtex-2001 stated Heimo Richter, German Ambassador to India while inaugurating the IGCC pavilion at Imtex-2001.

Helmut Von Monschaw, Executive Director, Verein Deutsche werkzeugmaschinenfabriken (VDW) - the German Machine Tool Builder's Association, stated that the German manufacturers are the number-one suppliers to the Indian industry in the years 1996 to 1998 and were the second largest suppliers of machine tools to India, after Japan, in 1999. Germany also ranks first in importing Indian machine tools, he added.

Promoting further development in India, German manufacturers would continue to cooperate with Indian companies on a partnership-oriented basis, Monschaw said. "Numerous cooperative ventures between Germany and India already exist, and concerning the growth potential of the Indian market, the German machine tool industry would do its utmost to ensure that it remains a major equipment supplier to and a long term and reliable partner of the Indian industry," he added.

According to him, the Indian market for machine tools was developing favourably and with increasing modernisation, CNC machines were becoming more and more important. The impressive display of Indian machine tools and modern technology at this year's Imtex-2001 was clear evidence of the rapid upswing in Indian industry particularly in the last few years, Monschaw said. The statistics reveal that while the world-wide production of machine tools declined by two per cent, the production in India increased by four per cent in 1999.

In an attempt to market their own show in Hanover, he invited Indian industry to participate at the EMO Hanover - the world's most important metalworking exhibition, Monschaw said that in view of continued economic growth in India, it could be expected that this year's EMO Hanover would once again attract considerable interest among exhibitors and visitors from India.

While highlighting the fact that German Machine tool industry was in an excellent condition and had been able to maintain and strengthen its worldwide competitiveness, Monschaw revealed that in the year 2000, the German machine tool production has increased by nine per cent to a volume of Deutsche Mark 18 billion and is expected to further increase by eight per cent by the end of this year.

Responding to a question from indiamarkets on the declining imports into India from Germany, Shailesh Sheth, Media Chairman, Imtex-2001 attributed the sanctions imposed on the Indian industry following nuclear tests as one of the reasons in skewing the decline.

For the German machine tool industry, 1999 marked the fifth year of growth in succession. However, the strong improvement in incoming orders to date in the course of the current year now signalises an increase in production in the region of 2-3 per cent.

According to Monschaw, "production increased by four per cent from DM 15.8 to 16.5 billion. While exports fell short of the previous year's level by four per cent, national sales rose by a full 15 per cent. In comparison with the historic record figure of 1998 (DM 18.1 billion), the order volume decreased by 15 per cent to DM 15.5 billion."

"Fortunately the industry's international ranking improved markedly. In 1999, the German machine tool industry experienced distinct gains of its share in the world production volume while Japan suffered heavy losses. According to the current figures, the balance between the two predominating machine tool manufacturing nations has melted down to less than DM 200 million," states the report from the VDW.

With world production having generally been in decline (VDW estimate: DM 64.9 billion, a two per cent less as against the previous year), Japan's share of the world production "cake" decreased by more than 2 percentage points to 21.6 per cent while Germany's share increased to 21.4 per cent (figures in international comparisons are traditionally understood to be exclusive of parts and accessories).

"The German manufacturers benefited from the prospering national business, especially supported by investment expenditures of the indigenous automotive industry. Japan's manufacturers suffered from the persistently tenacious recession in their national market. In addition to this, there was a break-down in the major South-East Asian export markets on their threshold," elaborated Klaus Frick, President & CEO of the INDEX-Werke GmbH & Co.KG Hahn & Tessky, Germany.

"During the first four months of the current year, the demand for German machine tools in the international markets has picked up pace. The increase by 42 per cent as against the comparable 1999 period comprises all types of machines. The improvement of economic conditions in Western Europe, sturdy business with America, and the fact that the bottom of the slump has been left behind in the Asian region, are making themselves felt definitely. In addition, it is of course also the weakness of the Euro as against Dollar and Yen that has improved the competitiveness of the German machine tool manufacturers," said Klaus Wenker, Managing Director, Gildemeister Drehmaschinen GmbH.

According to VDW report, based on 1999 order volumes, "the US remained by far the most important foreign market, followed by France, Italy and Great Britain. Although orders coming in from these four countries were in decline as compared with 1998, their absolute levels left the ranking of the most important customer countries unchanged. From Switzerland, Austria, Sweden and Mexico, increased order volumes were received. Capacity utilisation remains at a high level, reaching again 93.5 per cent in March 2000. The slight increase as against the end of 1999 (92.3 per cent) is due to the over proportionate development taken by metal cutting machine tools. It is noteworthy that the German machine tools industry employs as many as 66,000 people.