New Delhi, June 8: With India poised to become the world’s fourth-largest economy this fiscal year, German companies are intensifying efforts to forge local partnerships aimed at introducing advanced manufacturing technologies across green energy, semiconductors, and pharmaceuticals.
“India is an important and growing market with a huge pool of talent,” said Rainer Wittich, CEO of EDAG Production Solutions GmbH & Co. KG. “We are here to find the right partners and customers as we help develop production from the first sketch to full-scale operations.”
Wittich noted a significant uptick in interest from German clients seeking to expand manufacturing in future-focused domains like electrolyzers and medicine production. “We can support these sectors with our expertise in setting up production systems tailored to new technologies,” he added.
The Indo-German Chamber of Commerce, in collaboration with EDAG Group’s India unit, hosted a matchmaking event in New Delhi to facilitate business connections between German firms and emerging Indian enterprises. The initiative also spotlighted India’s growing capabilities in research and engineering.
“Smart factories, smart product development, and smart people—all of this is driving the shift toward a smarter industry,” said Stefan Halusa, Director General of the Indo-German Chamber of Commerce. “We’re getting an overwhelmingly positive response because it offers a glimpse of what the future industrial landscape will look like.”
Halusa outlined three primary reasons why German companies are increasingly turning toward India: economic growth, scalability, and capability.
“The Indian market is growing rapidly and will remain a key driver of global growth,” he said. “India not only serves as a consumption hub but also as an export platform. And beyond that, the engineering and R&D talent here is second to none.”
According to Halusa, India has emerged as a global center for research and development, with numerous Global Capability Centers (GCCs) now operating in the country. “This unique combination of scale, innovation, and talent makes India an ideal destination for German industrial collaboration,” he said.
German companies are also closely watching the progress of the long-pending India-EU Free Trade Agreement (FTA), which they believe could unlock even greater economic integration.
“Our member companies are eagerly waiting for the FTA to conclude,” Halusa said. “Without it, there’s a risk of Europe falling behind other countries that already enjoy favorable trade terms with India. This deal could be a real game changer.”
Trade between India and Germany reached $26.10 billion in FY 2023–24. Indian exports to Germany stood at $9.83 billion, while imports were recorded at $16.27 billion during the same period. Germany ranked as India’s 10th largest export destination between April and October 2024.
Government officials from both countries have reaffirmed their commitment to finalizing a comprehensive FTA, as well as agreements on investment protection and geographical indications, underscoring the strategic depth of Indo-German economic relations.
