Siemens says roughly a third of the investment would be spent on a building a new wind turbine factory in India. The South Asian country is struggling to meet soaring demands for energy amid a continuing boom. Analysts predict India's economy will grow eight percent this year.

"Our goal is to strengthen our position as the leading provider of green infrastructure solutions in India's booming market," Siemens chief executive Peter Loescher told reporters in New Delhi.

Siemens has a 140-long history in the subcontinent. The company is active in several sectors including energy, healthcare and information technology.

The electronics manufacturer also plans to increase its workforce in India from 17,000 to 25,000 workers over the next two years.

Loescher said his company is ready to help India meet its goal of producing 20 percent of its energy from renewable sources over the next decade.

Climate protection and cricket

Loescher was part of a business delegation accompanying German President Horst Kohler who arrived on Monday for a week-long visit to meet Indian political leaders. The trip is aimed at clinching deals to bolster trade and investment between the countries.

On Monday, Koehler met his Indian counterpart Pratibha Patil and Prime Minister Manmohan Singh. He is to meet business leaders later this week in the western city of Pune, home to German carmaker Volkswagen, before heading to Mumbai.

Koehler on Monday praised India for its commitment to climate protection and its desire to step up the use of renewable energy.

"Climate protection can only work if – as in the case of cricket -- there are binding and verifiable rules for everyone which are accepted by all as fair and just," the president added referring to India's national pastime, the game of cricket.

mm/dpa/AFP
Editor: Sonia Phalnikar