Full Breakdown
German Companies View India as Partner for Manufacturing, R&D and Innovation – Insights from Piyush Goyal’s Europe Tour
By Drooid · · How we work
Core Event
Union Commerce and Industry Minister Piyush Goyal led a delegation of roughly 100 Indian businesses on a six-day tour of Germany (Oct 22-24) and the Netherlands (Oct 24-27). The visit featured meetings with senior executives of German firms such as Siemens Healthineers, Bayer, Fresenius, Volkswagen, Škoda, and representatives of German research institutes. Goyal said German companies now see India as a strategic base for manufacturing, R&D and innovation.
Background & Context
Negotiations on the India-EU free trade agreement (FTA) concluded on January 27. The agreement is slated for signing by year-end, with implementation expected within four to five months. It will expand duty-free access for Indian exports to the 27-member bloc and deepen technology cooperation.
Timeline
- Jan 27 – India and EU announce conclusion of FTA negotiations.
- Oct 22-24 – Goyal’s meetings in Germany, including the Berlin Global Dialogue and talks with Federal Minister for Economic Affairs and Energy Katherina Reiche.
- Oct 24-27 – Delegation visits the Netherlands; Oct 25 – inspection of the Port of Rotterdam; Oct 26 – address at the India-Netherlands Business Forum in The Hague.
Data & Statistics
- Approximately 2,000 German companies operate in India.
- German FDI equity inflows to India total $15.6 bn (April 2000 – Mar 2026).
- Bilateral trade between India and Germany reached $31 bn in FY 26, a 4.83 % rise from FY 25.
Official Statements & Responses
He highlighted India’s rapid decarbonisation, suggesting it will give Indian exporters an advantage under the EU’s Carbon Border Adjustment Mechanism (CBAM).
Verbatim Quotes
- “With all the regulatory overhang that they (EU) are creating upon themselves, European manufacturing will have to look for trusted partner countries where many of the things that are becoming very expensive in Europe can be produced. So I see tremendous potential for India and huge job creation in India,” — Piyush Goyal
- “The focus of this visit has been to translate this partnership to greater levels of investment, industrial cooperation, and research and development,” — Piyush Goyal
Why It Matters
Positioning India as a partner for German firms aligns with Europe’s need to offset rising manufacturing costs and regulatory pressures. The combined strengths—German precision engineering and Indian talent plus lower production costs—are presented as a way to serve global markets, create jobs in India, and diversify supply chains away from conflict-affected regions. The FTA’s timeline could accelerate investment flows, especially in clean technology, advanced manufacturing and healthcare.
What's Next
- Oct 22-27 – Completion of the Germany-Netherlands tour, including sectoral roundtables on automotive, advanced manufacturing, clean technology and healthcare.
- End of calendar year – Expected signing of the India-EU FTA.
- Four to five months after signing – Projected operational start of the FTA, enabling duty-free access for 93 % of Indian shipments to the EU.
Conflicting Reports & Gaps
Sources uniformly report the shift in German corporate strategy and the scheduled dates of Goyal’s visit. No contradictory figures or disputed statements were identified. Detailed breakdowns of forthcoming German investment commitments and the exact timeline for GCC workforce expansion remain unspecified.