German industry prefers India as Asian mfg base

New Delhi: Driven by political stability and a skilled workforce, India’s importance as an investment location for global companies is growing sustainably and at least six out of 10 (59%) of German companies plan to increase their investments in India during the current financial year, according to a new report.Around 45 per cent of German companies want to use India as a production location for both the local and the Asian market by 2029.

Moreover, 78 per cent of respondents expect rising sales and 55 per cent expect increasing profits for the current financial year, an increase of 7 per cent against the previous year, according to the report by KPMG in Germany and the Indo-German Chamber of Commerce (AHK India).

The top three location factors that make India attractive are low labour costs (54%), political stability (53%) and qualified specialists (47%), revealed key findings of the “German Indian Business Outlook 2024”.

“India continues to show enormous potential. And further to this, it continues to gain in importance as a location for regional production and global development,” said Stefan Halusa, Managing Director of AHK India.