FICCI identifies electronics and advanced manufacturing as key areas for German investment in India, with potential for stronger manufacturing partnerships and integrated supply chains under the proposed India–EU free trade agreement.
The Federation of Indian Chambers of Commerce and Industry (FICCI) has identified electronics and advanced manufacturing as key areas for German investment in India, highlighting opportunities in electronics manufacturing, sourcing, automotive electronics, industrial automation and Industry 4.0.
FICCI Secretary General Anant Swarup said India’s expanding domestic market, skilled workforce and cost competitiveness complement Germany’s expertise in technology, precision engineering and innovation.
“German expertise in technology, precision engineering and innovation complements India’s market scale, skilled workforce and cost competitiveness,” Swarup said.
The India–European Union (EU) free trade agreement (FTA) could further support cooperation by helping develop integrated value chains and positioning India as a competitive manufacturing and sourcing hub for German industry. According to the report, negotiations have concluded, with signing expected in December 2026 and implementation potentially in 2027.
Swarup said the focus should now be on translating these opportunities into investments, joint ventures and stronger trade flows.
India–Germany bilateral trade rose by around 5% to US31billioninFY2025–26.India’sexportstoGermanytotalledUS11.52 billion, while imports stood at US$19.5 billion. Indian exports include electronics and smartphones, while imports from Germany include electrical equipment and heavy machinery.
Germany was India’s 10th-largest foreign investor, with foreign direct investment inflows of US$495 million in FY 2025–26. However, the report did not specify how much of this investment went into electronics or identify any new electronics investment commitments.
Swarup made the remarks while accompanying Commerce and Industry Minister Piyush Goyal on his official visit to Germany.
