German companies are increasingly looking at India not only as a huge consumer market but also as a strategic base for manufacturing, research and technological innovation. A number of large German companies are planning to significantly expand their presence in the country in the next two to five years. This was stated by Indian Commerce and Industry Minister Piyush Goyal after a two-day official visit to Germany.
During his visit to Berlin, the minister held meetings with executives of leading German companies, including Siemens Healthineers, Volkswagen, Škoda and Bertelsmann Investments. The talks focused on increasing investment, expanding production and deepening technological cooperation between the two countries.
According to Goyal, German companies now see India as a long-term economic partner that can help them reduce production costs and improve their competitiveness in global markets.
“The company executives conveyed a common message - German companies no longer see India just as a market, but as a partner, as a base for production, research and development and innovation“, the minister said.
Currently, about 2,000 German companies are operating in India. According to Goyal, many of them are preparing ambitious growth plans, with some planning to double or even triple the size of their operations in the next two to five years.
He stressed that combining German engineering traditions and technological developments with India's skilled workforce creates opportunities for a new generation of industrial partnerships.
There is particularly great potential for cooperation in the automotive industry, electronics, semiconductor manufacturing, batteries, smart manufacturing systems, logistics and quantum technologies.
The Indian government is striving to attract not only production facilities, but also research centers in which German and Indian specialists can jointly develop new technologies.
The country already has over 2,100 global business and technology service centers, which provide jobs for millions of highly qualified specialists. A significant number of international companies use these structures for engineering, design, information technology and scientific research.
During his visit, Goyal also held talks with representatives of the German “Fraunhofer“ institutes, specializing in applied scientific research. The possibilities for joint projects in microelectronics, power electronics, smart manufacturing, logistics and battery technologies were discussed.
The minister called on German research organizations to expand their presence in India and build closer ties with local universities and industrial enterprises.
Another important focus of the talks was the future free trade agreement between India and the European Union. Negotiations on it were concluded in January 2026, and its signing is expected by the end of the year.
According to Goyal, the agreement could begin to be implemented in early 2027, if it is signed within the stipulated time frame and the necessary procedures are completed.
The agreements are expected to facilitate access of Indian goods and services to the European market, as well as create new investment opportunities for European companies in India.
During his visit, the minister also spoke with German Minister of Economics and Energy Katharina Reiche. The two discussed the prospects for expanding industrial cooperation and transforming the future trade agreement into concrete investment projects.
Goyal emphasized that the success of the economic partnership will not be measured solely by the increase in trade exchange, but also by the number of new enterprises, technological developments, investments and joint production initiatives.
The increased interest of German business in India reflects the desire of European industrial companies to diversify their international production chains, optimize their costs and expand their presence in rapidly developing markets.
For India, this trend creates an opportunity to strengthen its position as one of the world's leading centers for industrial production, engineering developments and high-tech services.