India's transition – opportunities for Germany

India grows rapidly

India has been the fastest-growing major economy since 2023, with real GDP growth averaging around 7.3% compared to 5% for China and the ASEAN economies. Of course, India is starting from a much lower income base than China and several Southeast Asian economies. But its population of more than 1.4 billion, rising household incomes, and substantial infrastructure needs offer considerable opportunities for European exporters ranging from premium consumer products and healthcare to capital goods, electrical equipment and transport technology.

At the same time, India is far from a uniform market. Income levels, industrial clusters, logistics, workforce skills, and administrative capacity differ sharply across states. These differences help explain why foreign investment is concentrated in a relatively small number of locations. For European companies, choosing the right state, city and distribution network can be as consequential as the decision to enter India in the first place.

For full text see attached PDF-Version.