German businesses now see India as manufacturing, R&D and innovation hub: Piyush Goyal

German businesses are rapidly recognizing India as an essential hub for manufacturing, research and development (R&D), and innovation, transcending India's conventional status as merely a consumer market, Commerce and Industry Minister Piyush Goyal declared. During a two-day visit, Goyal engaged in bilateral talks with senior executives from prominent German companies like Siemens Healthcare, Bertelsmann Investment, Volkswagen, and Skoda.

These discussions revealed that German firms now view India not just as a market, but as a partner, base for manufacturing, R&D, and innovation. With around 2,000 German companies already operating in India, Goyal's visit aimed at broadening these bilateral trade and investment relations. Beyond mere trade, this partnership promises talent exchange, innovation, co-creation, co-designing, co-development, and co-manufacturing.

The minister underscored that the forthcoming India-EU free trade agreement (FTA) will be assessed by new orders, fresh investments, and technology partnerships. As Europe grapples with the ongoing debate over the Carbon Border Adjustment Mechanism (CBAM), Goyal noted that India has surpassed its Paris Agreement commitments ahead of schedule and is keen to collaborate on green hydrogen, financial assistance, and clean energy projects.

He also criticized the EU's CBAM, arguing that developed countries, particularly those historically responsible for climate change, should provide greater financial support to developing nations.