With $ 33 billion in bilateral trade in 2023, the partnership between India and Germany spans diverse sectors, including green hydrogen and Industry 4.0. SMEs, skill development and sustainability initiatives are key focus areas, driving economic progress. The alliance exemplifies strategic glo...
With $ 33 billion in bilateral trade in 2023, the partnership between India and Germany spans diverse sectors, including green hydrogen and Industry 4.0. SMEs, skill development and sustainability initiatives are key focus areas, driving economic progress. The alliance exemplifies strategic global cooperation and offers a blueprint for success, as discussed at a webinar hosted by FIRST Construction Council, in association with 鈥淐onstruction World鈥�, 鈥淪mart Manufacturing & Enterprises鈥� and 鈥淓quipment India鈥� on 17 January 2025.聽From trade to technologyThe Indo-German relationship has evolved from basic trade to multifaceted collaboration, with over 1,800 German companies operating in India. Machinery forms nearly a third of the $ 33 billion bilateral trade, with key growth sectors like renewable energy, digitalisation, and green hydrogen.Highlighting the company鈥檚 journey from a small market entrant in 1998 to India becoming its largest manufacturing hub, VG Sakthikumar, Managing Director, Schwing Stetter India, said, 鈥淕ermany trusted India鈥檚 ability to deliver quality at competitive prices.鈥� He added that machinery is now exported back to Germany and beyond, reflecting the mutual growth driving this alliance.India's industrial modernisationGermany has been pivotal in advancing India鈥檚 manufacturing capabilities and Industry 4.0 ambitions. Maanav Goel, Managing Director, Hoffmann Quality Tools India, noted that pre-1947 interactions were largely cultural but evolved into industrial collaboration post-Independence.German companies like Hoffmann have developed high-quality tools for industries like automotive and aerospace. 鈥淪ustainability is not a cost but an investment,鈥� added Goel, pointing to energy-efficient, precision-engineered solutions that bolster India鈥檚 manufacturing sector.Research, innovation and the role of technologyInnovation anchors the Indo-German partnership, with Fraunhofer leading advancements in sustainability. Fraunhofer鈥檚 technologies, such as digital twins for manufacturing and waste-to-construction solutions, enhance efficiency in Indian industries.Anandi Iyer, Director, Fraunhofer Office India, emphasised India鈥檚 role as a hub for entrepreneurship and rapid technology adoption, earning the company 鈧� 70 million annually from Indian contracts. She advocated for democratising technology, particularly for SMEs, suggesting innovation clusters to ensure equitable access and foster growth across all business sizes.Cornerstone of growthIndeed, SMEs are central to the Indo-German partnership, driving economic growth and job creation. Manoj Barve, India Head, BVMW, addressed their impact, noting that German SMEs contribute 55 per cent to GDP and employ 60 per cent of the workforce. Similarly, India鈥檚 SMEs account for 30 per cent of GDP, playing a vital role in job creation and economic development.Barve emphasised the synergy between India鈥檚 IT expertise and Germany鈥檚 engineering strength, enabling mutual benefits like advancing 鈥楳ake in India鈥� and addressing Germany鈥檚 energy-led inflation. He also urged India to enhance gender diversity, learning from Germany鈥檚 62 per cent female workforce supported by family-friendly policies. Addressing workplace challenges can help India unlock women鈥檚 full potential, in his view.聽Navigating challenges and expanding reachExpanding globally is challenging for SMEs, requiring market insights and consistent engagement. Nitin Pangam, Managing Director, Maeflower Consulting, emphasised upon the need to understand target markets, citing opportunities like the US Inflation Reduction Act and Saudi Arabian infrastructure projects.He further highlighted the role of the Government and institutions like Invest India and VDMA India in supporting international growth of SMEs. Pangam suggested India adopt models like Enterprise Ireland, which effectively helps SMEs expand into global markets.Shared responsibilitySkill development is a key pillar of Indo-German collaboration. Schwing Stetter鈥檚 Sakthikumar highlighted the company鈥檚 training initiatives for operators and welders, addressing gaps in India鈥檚 construction machinery sector. 鈥淥ur state partnerships have produced highly skilled workers, including global welding champions,鈥� he shared.Iyer advocated for adopting Germany鈥檚 dual education system, where 5 per cent of the workforce is in training. 鈥淚ndustry-driven skill programmes can bridge gaps and align India鈥檚 workforce with evolving technologies,鈥� she emphasised.Looking to the futureThe future of the Indo-German partnership lies in embracing sustainability, digitalisation and workforce empowerment. Rajesh Nath, Managing Director, VDMA India, summarised the webinar鈥檚 discussions, emphasising that sustainability and supply chain resilience will play a defining role in the relationship moving forward. 鈥淟everaging technology and deepening institutional collaboration are key to the future,鈥� he concluded, signalling the importance of continued cooperation in these areas.The optimism expressed by the panellists suggests that Indo-German collaboration is not only beneficial for both countries but also sets a powerful example for global partnerships. As Iyer aptly remarked, 鈥淭he future is bright but it requires strategic steps to make SMEs and innovation the engines of growth.鈥漈he Indo-German partnership represents a model of what strategic international cooperation can achieve. By focusing on trade, technology, sustainability and workforce development, both nations have been able to create a mutually beneficial relationship that drives growth and innovation.聽
