Manufacturing, Automotive, Renewable Energy And Electronics Among Key Areas For German Investment In India: FICCI

(MENAFN- KNN India) New Delhi, Oct 21 (KNN) India offers significant investment opportunities for German companies, supported by its expanding domestic market, strong economic fundamentals, infrastructure development and favourable policy environment, industry chamber FICCI said on Wednesday.

FICCI Secretary General Anant Swarup said German expertise in technology, precision engineering and innovation complements India's market scale, skilled workforce and cost competitiveness.

“India presents a compelling investment proposition for German companies, combining a large and growing domestic market, strong economic fundamentals, expanding infrastructure and a supportive policy environment,” Swarup told PTI.

He is accompanying Commerce and Industry Minister Piyush Goyal on his official visit to Germany, where he is leading a business delegation. Goyal is also scheduled to visit the Netherlands.

Opportunities In Advanced Manufacturing And Technology

Swarup said India's relatively low per capita consumption across sectors such as automobiles, steel, chemicals, plastics, electronics and consumer durables offers considerable scope for investment as incomes rise and urbanisation accelerates.

He identified advanced manufacturing, industrial automation, automotive technologies, specialty chemicals, renewable energy and electronics as key areas for German investment.

Germany is among India's most important economic partners in Europe, with significant potential to deepen cooperation in automobiles and auto components, engineering goods, electronics, green technologies and Industry 4.0, he said.

India-EU FTA Could Strengthen Bilateral Ties

The visit comes after India and the European Union (EU) concluded negotiations for a free trade agreement (FTA). The pact is expected to be signed in December and could be implemented next year. Germany and the Netherlands are members of the 27-nation EU.

Swarup said the agreement could help build integrated value chains, with India emerging as a competitive manufacturing and sourcing hub for German industry. He added that the focus should now be on translating the opportunities into investments, joint ventures and stronger trade flows.

Bilateral trade between India and Germany rose around 5 per cent to USD 31 billion in 2025-26, comprising Indian exports of USD 11.52 billion and imports of USD 19.5 billion.

Germany is India's 10th-largest foreign investor, with foreign direct investment inflows of USD 495 million in the last fiscal year.

India's major imports from Germany include heavy machinery, aircraft, electrical equipment and precision medical instruments. Its exports include electronics and smartphones, automotive components, organic chemicals, textiles and packaged pharmaceuticals.

(KNN Bureau)

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