59% of German companies plan new investments in India this year
India is attracting more and more German companies to the subcontinent. Nearly six in ten German companies are planning to increase their investments in India during the current financial year.
In addition, 78% of companies expect rising sales, and 55% forecast higher profits. Expectations for the next five years are even more positive: 82% expect an increase in turnover and 74% expect higher profits.
The companies assume that the growth rate will be very dynamic: By 2029, 37% of respondents expect sales growth of more than 20% and 25% of them anticipate profit growth of more than 20%.
These are the key findings of the "German Indian Business Outlook 2024" presented on Friday.
The survey conducted by KPMG in Germany and the Indo-German Chamber of Commerce (AHK India) took place between 9 April and 20 May 2024, and deals with the business expectations of German companies in India.
The relevance of the sub-continent is demonstrated by the current investment plans of companies. 59% of the companies surveyed are planning to expand their investments this year. That is 23%-points more than in 2021. India is and remains an important investment destination for German companies.
This is even more obvious with a five-year perspective: three quarters (78%) of companies want to increase their investments, a doubling compared to 2021 (36%). Only 7% of respondents are considering reducing their investments in 2024.
«German companies are increasingly diversifying and regionalizing their business operations across the globe,
