Scholz can be main a high-level delegation for presidency consultations, however it’s clear that the key discussion board can be to work out extra enterprise between Germany and India. It comes at a fragile time, particularly with the German financial system struggling and nonetheless largely being reliant on China demand for some key sectors.
German financial system minister, Robert Habeck, has come out to say that “India performs a key function within the diversification of the German financial system”. Including that they need to work to “strengthen the resilience of German firms and their provide chains to and from Asia”.
It is nonetheless an extended method to go although. For some context, German direct investments in India have been seen at roughly €25 billion as per 2022. That is solely roughly 20% of what was invested in China.
In any case, it is a small first step however one which may develop to be of way more affect within the subsequent decade or two maybe.
Little question that India is an enormous market with a lot of potential however paperwork and corruption are two issues that current main hurdles for firms to enter and to capitalise on enterprise there.
