With India poised to overtake the United States as the fourth-largest economy in the current fiscal year, more German businesses are searching for Indian partners in order to supply future technology for the industrial sector.
German corporations are seeking local partners to assist Indian enterprises in expanding their output in many industries, including semiconductors, pharmaceuticals, and green energy.
“India is an important market; it’s a growing market and has a huge amount of talent, and we are looking for talent because we are developing new technologies. We are the experts in the production field, and we are developing from the first sketch until the start of production. What we are doing here is we have invited our potential customers to this place (India),” said Rainer Wittich, CEO of EDAG Production Solutions GmbH & Co. KG.
“Many customers are going more and more into this activity. They want to build up the production areas more in the field of new technologies like green energy, electrolysers, semiconductors, and medicine pharma, and there we can help with our expertise,” Wittich added.
An event to explore commercial relationships with up-and-coming local enterprises and talent to assist manufacturing was organized by the Indo-German Chamber of Commerce in collaboration with the Indian branch of the Germany-based EDAG Group.
Talking to ANI during the event in New Delhi, Stefan Halusa, Director General at Indo-German Chamber of Commerce, said, “So we’re talking about smart factories, we’re talking about smart people, we’re talking about smart product development, and all of that contributes to the smart industry and for that we are getting very good responses because it gives a glimpse of what the industry could be like in a couple of years.”
In response to the topic of why German businesses are becoming more interested in India, Halusa stated that three things are drawing German businesses to the country: local markets and economic growth, scale, and capabilities.
“The first (factor) is the local market. The Indian economy is growing and it will continue to grow over the next couple of years. So if you look at growth around the world, India is one of the first and most important countries to look at. The second is scale. You look at India for export as well, to invest here also for exporting your goods and services, and the third one is the capabilities,” he added.
Halusa went on to say that India has developed into a center for research and development (R&D), which is another important reason why German businesses are becoming more interested.
“A lot of global capability centres are here, so it becomes a hub for research and development and engineering, and this combination is unique, and this is why German companies are looking for growth around the world. This is why they come to India,” Halusa added.
Furthermore, Halusa claimed that as Germany does not yet have a free trade agreement (FTA) with India, the German businesses are awaiting the conclusion of the ongoing FTA between India and the EU.
“Our companies, of course, tell us that they’re waiting for the FTA to be concluded because that could really be a game changer for German and European companies. Because India has already concluded trade agreements with a whole number of countries but not with Europe. So there is a risk for us to fall behind, and this is why it’s so important for the German and European industry that actually now comes to a conclusion,” he added.
In 2023–2024, Indian exports totaled USD 9.83 billion, contributing to the USD 26.10 billion in commerce between the two nations. In FY24, German imports to India totaled USD 16.27. As of April–October 2024, Germany ranks as India’s tenth-largest commercial partner in terms of exports.
In terms of governance, the leaders of both partner nations have emphasized how vital it is that the European Union and India have a complete free trade agreement, an investment protection agreement, and an agreement on geographical indications.
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