India’s accelerating economic performance and rising global influence have drawn strong praise from German Ambassador to India Dr. Philipp Ackermann, who called the country’s 8.2% GDP growth “very impressive” and a positive signal for the world economy.
Speaking to ANI, Ambassador Ackermann said India’s robust expansion, supported by structural reforms and investor confidence, is making the country an increasingly attractive destination for global businesses—including German companies seeking stable long-term markets.
“India’s growth story is good news for the world,” he said, noting that Germany sees India as a “crucial partner” in both economic and climate transitions.
Ambassador Ackermann: ‘India Is Becoming a Strong, Stable Investment Destination’
Ambassador Ackermann underlined that India’s size, stability and steady reforms have strengthened global confidence: “The 8.2% growth rate is very impressive. India is expanding rapidly, and this is good news—not just for India, but for the global economy.”
He said German investors view India as a high-potential market with deepening integration into global supply chains.
The envoy stressed that India’s rise toward becoming the world’s third-largest economy by 2030, with projected GDP of USD 7.3 trillion, is backed by decisive policymaking, resilient domestic demand, and sustained investor sentiment.
India’s Economic Trajectory: Background to a Global Growth Engine
India’s economic ascent has consistently outpaced global peers. Key drivers include:
Strong GDP Performance
- 8.2% real GDP growth in Q2 FY 2025-26 (up from 5.6% last year)
- 7.8% growth in Q1 FY 2025-26
- Broad-based expansion across sectors: Primary sector: 3.1%, Secondary sector: 8.1% Tertiary sector: 9.2%
Half-year growth (April–September 2025) stood at 8%, underscoring sustained momentum driven by manufacturing and services.
Inflation Moderates Sharply
Headline CPI eased to 0.25% in October 2025, the lowest under the current series:
- Rural inflation: –0.25%
- Urban inflation: 0.88%
- Food inflation (CFPI): –5.02%
The Reserve Bank of India, maintaining the repo rate at 5.50%, signalled confidence in price stability amid rising consumption.
‘COP30 Delivered Good and Binding Results’: German Envoy on Climate Commitments
The Ambassador linked India’s economic strength with its growing climate leadership, reflecting on COP30 outcomes: “COP30 delivered good and binding results, especially on adaptation. Not everything we hoped for was achieved, but much was accomplished.”
Dr. Ackermann acknowledged the challenges posed by reduced international financing: “The absence of the United States created a financing gap. But Germany remains fully committed to phasing out fossil fuels and contributing significantly to climate action.”
Indo-German Cooperation: GSDP as a Cornerstone for Shared Growth
Highlighting the Green and Sustainable Development Partnership (GSDP), Dr. Ackermann said: “Germany and India will work hand in hand. Technology sharing, expertise exchange, and climate strategies will define our partnership.”
The GSDP framework includes cooperation on renewable energy, green hydrogen, just transition pathways, and urban climate resilience—areas where Germany considers India a trusted long-term partner.
Industrial Strength Supports India’s Expansion
India’s economic fundamentals remain broad-based and resilient, with recent data showing:
Industrial Production Rises
- IIP growth at 4% in September 2025, led by:
- Electrical equipment: 28.7%
- Basic metals: 12.3%
- Automobiles: 14.6%
Manufacturing Push Under PLI
The Production Linked Incentive scheme has attracted ₹1.76 lakh crore in investments across 14 sectors, boosting domestic capacity and exports.
Labour Market Strengthens
- Labour Force Participation Rate: 55.4%
- Freshers hiring up 15% (Naukri JobSpeak)
- AI/ML roles up 61%, signalling a tech-driven jobs surge.
Trade Performance Improves
India’s exports (goods + services) grew 4.84% in April–October 2025 to USD 491.8 billion, with electronic goods and marine products leading the surge.
Policy Stability Reinforces Growth Outlook
GST 2.0 reforms—introducing a simplified two-slab structure (5% and 18%)—have reduced costs, expanded the tax base, and strengthened consumption.
- Global institutions have revised India’s growth projections upward:
- World Bank: 6.5% (2026)
- IMF: 6.6% (2025)
- OECD: 6.7% (2025)
- RBI: 6.8% (FY 2025–26)
A Confident Outlook
India’s economic rise—driven by reforms, strong domestic demand, and expanding industrial capacity—continues to position it as a central engine of global growth. With inflation stabilising and investment momentum strengthening, India is shaping its own path toward becoming the world’s third-largest economy.
Ambassador Ackermann captured the global sentiment clearly: “India is on a strong growth path. This is encouraging for Germany, for Europe, and for the global economy.”
For India, this recognition reflects a broader reality: its economic momentum is now a key pillar of global stability, and its decisions, industries, and markets are increasingly influencing the world’s economic direction.
