German businesses view India as a highly “stable place” to invest, according to Germany’s ambassador Philipp Ackermann, who expects increased German investment in India once the India-EU Free Trade Agreement addresses existing tax and tariff “impediments.”
In an interview with ANI, Ackermann mentioned the potential visit of German Chancellor Olaf Scholz in October, during which business and trade relations will be key topics. Migration will also be a significant item on the agenda.
Speaking at the release of the German India Business Outlook 2024 survey, Ackermann said, “The survey reveals that German businesses are very optimistic about India. It found that nearly 80% of German businesses are keen to expand, reinvest, build more factories, and increase their investments in India.”
“The German businesses see enormous potential in the Indian market. They are impressed by India’s growth rates, which makes them very enthusiastic. Post-elections, they find India a very stable place to invest.”
He described the long-awaited India-EU Free Trade Agreement as a “game changer” but underscored that no specific deadline has been set for its signing.
Discussing the impact of the FTA on Indo-German trade, Ackermann highlighted that tariffs and taxes are significant concerns for German companies, and the FTA would resolve these issues. He said that for many German companies, an FTA would provide clear regulations on tariffs and trade, greatly benefiting their business
The proposed trade deal with the EU is among the most complex FTAs India is negotiating, with no breakthroughs despite multiple rounds of talks. On June 17, 2022, the European Union relaunched negotiations with India for a Free Trade Agreement, alongside separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs).
Ackermann also provided details about Chancellor Scholz’s possible visit, saying that the Chancellor, along with members of his cabinet, will meet their Indian counterparts to discuss future programs, projects, and roadmaps.
“We expect this to happen in the second half of October. The dates are yet to be finalized, but it will be a crucial moment to review our progress,” he said.
“We will work on developing the future of this partnership during these consultations. The agenda will certainly include business and trade relations, as well as migration, which is a significant issue. Political discussions will also take place”.