European Companies, Carmakers Explore Manufacturing Opportunities In India: Piyush Goyal
Speaking to reporters during his official visit to Germany, Goyal said,“With all the regulatory overhang that they (EU) are creating upon themselves, European manufacturing will have to look for trusted partner countries where at least many of the things that are becoming very expensive in Europe can be produced. So I see tremendous potential for India and huge job creation in India,” PTI reported.
He identified precision engineering, aerospace, defence, shipbuilding and ship repair as other sectors offering investment opportunities. German companies have also indicated plans for substantial investments, he said.
Without naming the company, Goyal noted that one firm was planning to increase its business turnover in India from around 4 billion euros to 10 billion euros. He added that India exports around one million cars annually and could increasingly serve European markets with locally manufactured vehicles.
Indian Ambassador to Germany Ajit Gupte highlighted that German companies had announced investments worth USD 7.4 billion in India over the past two-and-a-half years.
India-EU FTA To Support Investment
Goyal said the proposed India-EU free trade agreement (FTA), expected to be signed by the end of 2026 and implemented in the first quarter of 2027, would improve market access and provide greater certainty for trade and investment.
Combining India's manufacturing scale with European technology could create significant opportunities for both sides, he added.
On ease of doing business, Goyal said the government was working to decriminalise minor offences and remove or simplify around 40,000 compliance requirements.
CBAM Understanding, Worker Mobility
On the European Union's Carbon Border Adjustment Mechanism (CBAM), Goyal said India and the EU had reached an amicable settlement. He said India would support exporters in accelerating decarbonisation, while the country's transition to cleaner production could help its industries manage the impact of the carbon levy.
Goyal also highlighted opportunities for Indian workers in Germany, particularly in technical occupations, caregiving and nursing. German companies were looking to hire thousands of workers, he said.
The Ministries of External Affairs, Skill Development and Entrepreneurship, and Commerce and Industry are working to establish more centres offering German language and cultural training.
More than 2,000 German companies operate in India. Germany is the country's tenth-largest investor, with FDI inflows of USD 495 million in 2025-26 and cumulative investments of USD 15.84 billion between April 2000 and June 2026.
(KNN Bureau)
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