According to VDMA, a leading industry association, it is anticipated that there will be a growth of 10-15 percent in German machinery exports to India in the year 2026. This growth is projected to be particularly robust following the commencement of the India-EU free trade agreement.
Nath delivered remarks at LogiMAT India 2026, an international trade show showcasing advancements in the field of logistics, currently taking place in the city of Mumbai. The VDMA e.V. is a professional association of 3,600 German and European companies specializing in mechanical and plant engineering.
The three-day LogiMAT India 2026 conference has attracted national and international companies from 10 countries, all convening with the goal of driving growth within India's logistics and infrastructure sectors.
The collaboration between India and Germany at the German Pavilion is facilitating investment in the logistics industry, attracting involvement from various international organizations such as the Indian Chamber of International Business, Warehousing Association of India, Indo-French Chamber of Commerce, Indo-American Chamber of Commerce, VDMA, and the All India Warehousing Welfare Association.
Nath emphasized the importance of German technology imports for driving India's manufacturing evolution.
Viksit Bharat aims to propel India's transformation into a developed economy by 2047, necessitating an increase in manufacturing's GDP share from the current 16-17 percent to 25 percent.
This objective calls for annual sectoral growth rates of 10-12 percent, with a focus on incorporating advanced manufacturing technologies from Germany and Europe to enhance India's industrial capabilities, Nath explained.
The strategic importance of the EU-India FTA is enabling European manufacturers to set up manufacturing facilities in India and utilize it as a central export point for worldwide markets. This positioning solidifies India's role as a crucial component in global supply chains.
Germany has become India's primary trading ally within the European Union, marking a significant increase in bilateral trade to approximately $30 billion during the fiscal year 2024-25.
Indian exports were valued at USD 10.5 billion, with imports focusing largely on machinery, electrical equipment, and precision instruments, amounting to a total of $19 billion. Germany not only participates in trade with India, but also holds a position within the top ten global trading partners of India. It ranks ninth for foreign direct investment, having invested more than USD 15 billion in the Indian economy since the year 2000.
The main areas of focus for German machinery importers in India encompass power transmission, construction equipment, plastic processing machinery, material handling logistics, and food processing and packaging.
India and the European Union recently finalized discussions on a free trade agreement. The agreement, projected to take effect this year, is anticipated to open up new avenues for trade between India and Europe.