With India emerging as the world’s fourth-largest economy in the current fiscal year, German companies are accelerating efforts to collaborate with Indian businesses in advanced manufacturing sectors. According to a report by ANI, several German firms are actively scouting for Indian partners to support the expansion of green technologies, semiconductor production, and pharmaceutical manufacturing.
German Expertise Meets Indian Market Potential
Executives from leading German firms emphasized that India’s growing economy and skilled workforce make it a strategic partner for the future of global manufacturing.
“India is a dynamic and rapidly growing market, rich in talent,” said Rainer Wittich, CEO of EDAG Production Solutions GmbH & Co. KG. He explained that German firms, particularly those developing new production technologies, see India as a key destination to deploy their expertise—from early-stage design to full-scale production. “Our goal is to bring these innovations closer to Indian customers,” he noted during a recent business engagement in New Delhi.
Wittich added that demand for advanced production infrastructure is rising in sectors such as green energy, electrolysers, semiconductors, and pharmaceuticals. German companies, he said, are well-positioned to assist with technical know-how and execution.
Indo-German Chamber Pushes Smart Manufacturing Vision
The Indo-German Chamber of Commerce, together with the India division of the Germany-headquartered EDAG Group, hosted a business partnership event aimed at fostering collaboration with Indian companies and professionals in high-tech manufacturing.
Speaking to ANI on the sidelines of the event, Stefan Halusa, Director General of the Indo-German Chamber of Commerce, said there is significant interest in what he termed the “smart industry”—comprising intelligent product development, automated factories, and skilled workforces.
“We’re seeing very encouraging responses,” Halusa said. “This is a preview of what manufacturing could look like in the near future, and India is poised to be a vital part of that transformation.”
What’s Driving German Investment in India?
Halusa identified three primary reasons behind the growing interest of German companies in India: its expanding domestic market, the economy’s vast scale, and its technical capabilities.
“India’s economic growth trajectory makes it one of the most attractive markets globally,” he said. He also pointed out that beyond serving local demand, India is increasingly seen as a viable export base. “There’s tremendous potential here to build for the world.”
Another key factor is India’s emergence as a global R&D hub. “The presence of numerous Global Capability Centres has positioned India uniquely in terms of engineering and innovation,” Halusa explained, reinforcing why Germany sees India as a partner of strategic importance
Awaiting EU-India Free Trade Deal
German industry leaders are also closely watching the progress of the India-European Union Free Trade Agreement (FTA). Halusa highlighted that the absence of such a deal poses a competitive risk for European businesses.
“India has already signed FTAs with several other countries. If a deal with the EU is delayed further, there’s a concern that European firms may lose ground,” he stated, urging swift progress on the India-EU FTA, Investment Protection Agreement, and Agreement on Geographical Indications.
Bilateral Trade Snapshot
According to the latest figures, trade between India and Germany reached USD 26.10 billion in 2023–24. Indian exports stood at USD 9.83 billion, while imports from Germany touched USD 16.27 billion in the same fiscal year. Germany ranks as India’s 10th largest export partner during the April–October 2024 period.
On the diplomatic front, leaders from both countries have reaffirmed the urgency of finalizing trade and investment agreements to deepen economic ties and foster innovation-led growth.
(With inputs from ANI)
