Many German industrial companies are deeply concerned about the current developments in the Chinese market. For quite some time, scenarios have been evaluated on how to respond to Beijing’s isolationist tendencies and how to strategically plan investments in alternative markets. One country is increasingly moving into focus: India.
Business expectations in India are rated particularly positively in the Asia-Pacific Business Outlook of the German Chambers of Commerce Abroad (AHK). Many companies in the APAC region are already planning a substantial increase in investments in the Indian market.
Germany’s Mittelstand also evaluates the current business climate and future prospects in India optimistically. The main reasons for this are the sheer market size of the country and its rapidly growing consumer market. Rising demand for industrial goods and services, economic expansion and ongoing urbanization offer German companies numerous opportunities.
In addition, India often provides more cost-efficient production opportunities compared to Germany – supported by access to highly qualified yet more affordable labor. This cost advantage can become a competitive factor, especially for medium-sized companies seeking efficiency gains.
At the same time, India has become an important hub for research and development in recent years. By investing in India, German SMEs can benefit from the country’s technological capabilities and innovative strength. Partnerships with Indian companies and research institutions enable access to new technologies and ideas that can strengthen their own competitive position.
Finally, the Indian government has introduced a range of measures to improve the business environment and promote foreign investments. Proactive support for investments creates a more stable and attractive business environment for German medium-sized companies.
As an international executive search consultancy, we have been supporting our clients for more than 15 years in recruiting local managers for their subsidiaries in India. In addition to managing directors, we have successfully placed plant managers and R&D managers for our mid-sized clients. For many years, we have worked closely and trustfully with a local recruitment consultancy that supports us on the ground. Feel free to contact us regarding our experience in India! We can help.