India Emerges as 'China + 1': Germany's New Business Strategy

Chancellor Olaf Scholz leads a high-level delegation to India, exploring opportunities to reduce Germany's reliance on China. The visit highlights India's potential as a key economic ally, despite investment challenges. German firms see long-term prospects in India's growing market, political stability, and economic dynamism.

Chancellor Olaf Scholz is spearheading a high-profile delegation to New Delhi this week, focusing on expanding Germany's economic ties with India as a strategic move to decrease reliance on China.

Amid a shrinking export-oriented economy, Germany is seeking to diversify its trade partners following past dependencies on Russian gas. Indian markets present opportunities due to their vast skilled labor force and economic growth, despite challenges like bureaucracy and taxation.

While China remains a significant trade partner, experts see increasing German investment in India as a vital strategy. German companies, optimistic about India's growth, plan to invest heavily, particularly in logistics and manufacturing sectors.

(With inputs from agencies.)