Indo-German bilateral trade reached a record high of EUR 30.8 bn; 59 pc German cos wanted to invest more in India

New Delhi [India], June 28 (ANI): Expressing eagerness to India’s journey of economic development, Director General of Indo and German Chamber of Commerce Stefan Halusa, said that the German companies have never been more optimistic about their business and business expectations in India.

The German embassy officials gathered on Friday to talk about the German India Business Outlook survey conducted by KPMG, a multinational professional services firm.

More than 80 per cent of German companies that responded to this survey, expect an increase in revenues in India for the next five years. Almost 74 per cent expect higher profits in the next five years in India.” Halusa added citing the report.

According to the survey 78 per cent of companies expect rising sales, and 55 per cent forecast higher profits. The company’s expectations for the next five years are even more positive: 82 per cent expect an increase in

turnover and 74 per cent expect higher profits.

The companies assume that the growth rate will be very dynamic: By 2029, 37 per cent of respondents expect sales growth of more than 20 per cent and 25 per cent of them anticipate profit growth of more than 20 per cent.

Highlighting a huge number of German companies working in India, he added that around 2000 German companies are currently working in the country as per the database. A lot of companies are working in automobiles, automotive supplies, engineered solutions, electric chemicals and pharmaceuticals.

Talking about the challenges the German companies are facing, he added that the complexity of its licenses and changing rules in each state troubles companies especially those that operate from multiple locations in the country.

The Bilateral trade between India and Germany reached a new record high of EUR 30.8 billion in 2023. The direct and indirect investment stock held by German companies in India also reached a new record high of EUR 23.9 billion in 2022.

As per the German India Business Outlook survey, the companies surveyed are planning to expand their investments in India in the coming years, attracted by the country’s low labour costs, political stability, and availability of skilled workers.

A substantial 59 per cent of the companies surveyed are planning to expand their investments this 2

year. That is 23 per cent points more than in 2021.

It observed that the investment intentions of German companies have also increased significantly compared to the previous year.

However, The survey highlights the hurdles such as bureaucracy, corruption, and a complex tax system that are hindering the investment intention of these companies. Despite these challenges, German companies are confident about their long-term prospects in India, the survey adds.

In the recent edition of the editorial of AHK, Business Magazine of the Indo-German Chamber of Commerce STEFAN HALUSA Director General Indo-German Chamber of Commerce mentioned, industrial innovation and workforce development as two key areas where both the companies can collaborate.

“India’s expanding industrial sector will require a vast pool of skilled workers. Conversely, Germany faces a looming shortage of skilled labour while struggling with educational deficits among its youth,” it noted.