As India is set to become the world’s fourth-largest economy this fiscal year, more German companies are actively looking for Indian partners. Their goal is to bring advanced technologies into India’s growing manufacturing sector.
One of the key reasons is India’s strong and growing market. The Indian economy is expected to continue expanding in the coming years, making it a top destination for global investment. Another major reason is that Germany sees India not just as a market but also as a base to export goods and services. The third reason is India’s strong capabilities in research, development, and engineering.
German companies also see India as a global R&D hub. Many international capability centers are already established here, which makes India even more attractive for future innovation and growth.
However, many German companies are waiting for the India-EU Free Trade Agreement (FTA) to be finalized. Germany currently does not have a trade deal with India, and this delay could affect their competitiveness. Industry leaders believe that a completed FTA would be a major boost for trade and investment from Germany and the wider European region.
In terms of trade, India and Germany reached USD 26.10 billion in total trade during 2023–24. Indian exports to Germany were USD 9.83 billion, while imports stood at USD 16.27 billion. As of April to October 2024, Germany is India’s 10th largest export partner.
Leaders from both countries have emphasized the need to finalize the Free Trade Agreement, the Investment Protection Agreement, and the Agreement on Geographical Indications between India and the European Union.