51% of German companies to increase investment in India

New Delhi| India remains the engine of growth for Germany in the Asia-Pacific region. Considering India’s strong economic foundation, German companies want to become partners in its growth story. The survey, conducted by the network of German Chambers of Commerce Abroad (AHK), said that 51 percent of German companies doing business in India want to increase their investment in the coming 12 months.

At the same time, 28 percent of German companies doing business in China want to cut their investments in Greater China. Greater China includes China, Taiwan, and Hong Kong. The survey has been conducted among some 820 member companies in the Asia-Pacific and Greater China region.

The survey said the current business position of German companies in the Asia-Pacific region, excluding Greater China, fell to historic lows in the autumn of 2024. One out of every five companies has described its current business situation as bad.

Volker Treyer, head of foreign trade at the German Chamber of Industry and Commerce DIHK, said, despite the disappointing situation in many places, our companies in Asia-Pacific are not disappointed. They are optimistic about the future. More than half of the companies surveyed expect their local businesses to improve in the coming years. Only 8 per cent anticipate a decline.

According to AHK, the business environment in China has improved slightly, but the investment plans of companies have decreased significantly. The main reason for this is the diverse and better business environment in other markets of the Asia-Pacific region compared to China. Along with this, in the context of India, it has been said that the country is becoming important for German companies, where there is huge potential for business growth. German companies expect their income in India to grow rapidly.