German firms pivot to India as manufacturing and innovation hub

German industrial giants including Siemens Healthcare, Bertelsmann Investment, Volkswagen and Skoda have signalled a fundamental shift in their approach to India, viewing the country as a comprehensive investment destination beyond traditional retail markets.

During a two-day visit to Germany, Minister Goyal held a series of high-level meetings with company representatives who conveyed a consistent message: India now serves as a pivotal partner for manufacturing operations, innovation centres and research facilities.

"The CEOs were united in their perspective that India represents far more than a market opportunity," Goyal said. "They see India as a base for manufacturing, research and development, and innovation partnerships."

The minister emphasised that combining German technological precision and research capabilities with India's skilled workforce and innovative capacity would substantially reshape global perceptions of India's industrial potential. Approximately 2,000 German firms currently maintain operations across India, underscoring the depth of bilateral commercial engagement. The ministerial visit aimed to identify further avenues for strengthening trade relations and deepening industrial collaboration between the two nations.