Eng
A study by DZ Bank shows that German businesses are increasingly focusing on India, with 15% of companies planning to expand their supply chains to India. In autumn 2022, this share was still a good 10%.
India is becoming increasingly attractive to large and medium-sized companies with an annual turnover of EUR 50 million or more, with around one in four planning to expand their trade relations with the Asian country. India is particularly attractive to businesses in the food, chemical, plastics, metals, automotive, and mechanical engineering sectors.
The interest in India is understandable given that it is one of the world’s fastest growing economies, with growth of around 7.7% in 2023. In fact, analysts at DZ Bank suggest that India is likely to overtake Germany and Japan economically in around ten years’ time and rate the country’s importance to supply chains as greater than that of China.
Currently, 17% of companies surveyed believe that China will become more important to their business in the next five years. However, around one in ten medium-sized companies plan to scale back trade relations with China in the next few years.
Source: trans.info