Within the European Union Germany is the largest economy. It is India’s second largest trading partner within the EU and also a major source of technology and investment for India. The pertinent issue in this capital movement from Germany to India involves violation of human rights by the German firms. Any MNCs in India are involved in reducing the bargaining power of the Indian labour. These strategies include ban on new recruitments in unionized categories, parallel production and Voluntary Retirement Schemes. This study was a part of the project intended to present a parallel report to the Committee on Economic, Social and Cultural Rights of United Nations about the negative effects of German politics regarding economic, social and cultural rights in the countries of the South. It examines the effects of German politics and investments on Indian labour.