India is modernizing

India is serious about modernizing its economy

| Market entry abroad

22 billion euros for the expansion of the infrastructure, the liberalization of the rules for foreign investment and the reduction of bureaucracy in the creation of companies: these are three of many measures with which the government of Prime Minister Narendra Modri ​​wants to stimulate and modernize the country's economy.

“The ambitious goals include the expansion of the road network and the expansion of seaports and airports. There are also plans to enlarge the railway network. The energy and water supply should also be improved, ”explains Thomas Hundt, international employee of Germany Trade & Invest in New Delhi. The country is reliant on foreign know-how for these projects and this is also welcome.

This is good news for German companies, as, in addition to the infrastructure, the entire Indian economy is to be modernized and thus also more competitive. This also requires high investments in the machine park. India produces simple engineering products itself. However, export-oriented companies in particular need high-quality and precise machines "Made in Germany".

Government of India wants to press ahead with reforms

“Above all, drive technology, textile machines, machine tools and conveyor technology are imported from Germany. With the aim of promoting industrialization, tax, labor market and land reforms were tackled. The government is obviously really trying to tackle and implement fundamental reforms, ”says Heena Nazir, correspondent for GTAI in Mumbai. This is the most important prerequisite for long-term positive economic development in India.

In the long term, the outlook for the automotive industry is good too. Rising incomes, a growing middle class and so far low levels of motorization are driving demand. The commercial vehicle market is growing particularly strongly. Here, too, the further development of the sector depends, among other things, on the Indian government's ability to reform.

Further information is available at www.gtai.de/Indien and www.gtai.de/haben-chancen-fuer-investoren

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