German media: German Chancellor's visit to India: German industry seeks to "de-risk" from China

German Chancellor Friedrich Merz will lead an economic delegation to India this Sunday. Berlin is seeking to transcend cooperation with this South Asian country to reduce dependence on China.

Currently, about 2,000 German companies have branches in India, employing more than 500,000 people. Volker Treier, head of foreign trade at the German Industry and Chambers of Commerce (DIHK), pointed out that India is becoming increasingly important for German companies in terms of supply chain diversification due to its economic vitality, young population structure, and expanding industrial base.

Reducing dependence on China

Although the Indian market has great potential, it currently ranks only 23rd among Germany's trade partners. By comparison, German companies have invested 100 billion euros in China, while investments in India amount to only 27 billion euros. Berlin has repeatedly emphasized that it is necessary to reduce unilateral reliance on China by expanding economic relations with other countries.

In 2024, Sino-German trade reached 31 billion euros. Germany mainly exports machinery, chemical products, and aerospace equipment to India, while importing pharmaceuticals, textiles, and chemical products from India.

Targeting a Free Trade Agreement

After the EU recently approved a free trade agreement with Mercosur, the German business community is now turning its attention to India. Treier said that most German companies support signing an EU-India trade agreement to eliminate tariffs and technical trade barriers.

The German industrial sector particularly hopes for zero tariffs in the automotive, mechanical engineering, and chemical sectors, and urges India to streamline bureaucratic certification processes. In addition to traditional manufacturing, digitalization, infrastructure development, and professional talent training are also seen as growth areas for future cooperation between the two sides.

Source: DPA + DW

Original article: toutiao.com/article/1854002862597132/

Statement: This article represents the views of the author himself.