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As India edges closer to becoming the world’s fourth-largest economy this fiscal year, German companies are ramping up efforts to collaborate with Indian partners in the manufacturing sector. The aim is to introduce future-ready technologies across high-growth areas such as green energy, semiconductors, and pharmaceuticals.
German industrial players are looking for strategic collaborations to anchor Indian manufacturers in scaling up advanced production capabilities. “India is an important and growing market with immense talent. We are developing technologies right from the conceptual stage to production, and we see India as a valuable partner,” said Rainer Wittich, CEO of EDAG Production Solutions GmbH & Co. KG.
The Indo-German Chamber of Commerce, in partnership with the Indian arm of EDAG Group, hosted a key event in New Delhi to foster business partnerships between German firms and emerging Indian enterprises. The focus was on collaborative innovation in smart factories, product development, and digital manufacturing.
“So we’re talking about smart factories, smart people, smart product development—all contributing to a smart industry. The interest from Indian companies has been very encouraging,” said Stefan Halusa, Director General, Indo-German Chamber of Commerce.
He highlighted three main reasons driving German interest in India: a robust and expanding domestic market, the scale and global reach of Indian industry, and the growing capabilities in research and development. “India is increasingly becoming a hub for R&D and engineering. This makes it a unique partner for our companies looking to grow globally,” Halusa added.
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German firms are also closely watching the progress of the India-EU Free Trade Agreement (FTA), which could significantly ease bilateral trade. “A finalized FTA would be a game changer. India already has trade deals with several countries, and without an EU-India agreement, there’s a risk of German industry falling behind,” Halusa cautioned.
Bilateral trade between India and Germany reached USD 26.10 billion in 2023-24, with Indian exports at USD 9.83 billion and imports from Germany at USD 16.27 billion. Germany currently ranks as India’s 10th largest export destination for April–October 2024.
The governments of both nations continue to emphasise the strategic importance of finalising a comprehensive FTA, along with agreements on investment protection and geographical indications. These developments are expected to further bolster Indo-German industrial collaboration and drive innovation in the global manufacturing landscape.
