The German government has set up a business development centre in Gurgaon near Delhi aimed at facilitating interaction and cooperation among Indian and German companies, especially in the small and medium enterprises sector.

"The centre will serve as a platform for German firms, particularly SMEs, to understand the Indian business environment and initiate projects with their counterparts in the country," Minister-President of German Federal State of Schleswig-Holstein Peter Harry Carstensen said on Wednesday.

Carstensen, speaking at the EU-India Trade and Investment Development Programme, organised by industry body Ficci, will inaugurate the centre later in the day.

The minister is leading a 38-member delegation that would explore investment opportunities in areas of food processing, science, technology, renewable energy and biotechnology among others.

He said the SMEs have been the main drivers of economic growth in the European nation.

"It is not just big global firms that bring employment and investment, but also the SMEs that are contributing to Germany's growth story," Carstensen said.

Germany is the largest trading partner of India in the European Union, with the trade target of 10 billion Euro (15 billion dollars) already achieved three years ahead of plan.

"We would further increase it to 20 billion euro (30 billion dollars) in the next five years as emphasised by Chancellor Merkel during her visit to India last month," German Ambassador Bernard Muetzelburg said.