German firms see India as a partner, not just a market, minister says

what happened

Indian commerce and industry minister Piyush Goyal, speaking at the close of his trip to Germany, said German firms expect to multiply their Indian activity by two or three times in the coming years. According to Moody's, the drive aims at lowering costs, expanding production and becoming more competitive in global markets.

Goyal proposed licensing arrangements that would let India and Germany work as trusted partners on jointly developed technologies and help build skills among young Indians. He stressed that bringing talent home takes more than money, and he ruled out state-backed programmes modelled on China's.

Goyal said chief executives of companies including Siemens Healthineers, Volkswagen and Skoda now describe India as a base for manufacturing, research and development, not only a sales market. India already hosts more than 2,100 global capability centres. He listed power, electronics, semiconductors, quantum computing, automotive, batteries and logistics as promising areas for cooperation.

why it matters

For investors the signal is qualitative: German industry is deepening its footprint in India, which could support interest in Indian equities and supply chains. The report gives no investment amounts or timelines, so the scale of any market effect is still unclear.

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