Delhi- Indian Ambassador to Germany Ajit Gupte discussed many issues. According to Indian ambassador Ajit Gupte, German companies see India as one of the most important potential destinations in the context of the need for diversified global supply chains.
“What has happened as a result of the conflict and the COVID-19 pandemic is that there is a growing understanding in Europe, and especially in Germany, that there is a need to build resilient global supply chains, which are now sourcing everything, from all. It cannot depend on a particular country. And they need to rebalance, they need to reduce risks,” he said in a press report.
“Reducing risk is a phrase I have heard frequently in the short time I have known German CEOs,” he said. And they are considering different options.” “India is certainly one of the most important potential destinations they are considering. But to be clear, they are also considering other countries like Malaysia, Thailand and Mexico.”
This comes at a time when Indian imports are being diverted through Dubai’s Jebel Ali port to ease bottlenecks caused by China’s export restrictions to India; Critical machinery and materials are also included, including those manufactured by German companies.
Indian Minister of Commerce and Industry Piyush Goyal presented the tunnel built by German Herrenknecht to Robert Habeck, Vice Chancellor and Federal Minister for Economic Affairs and Climate Action of Germany, during his recent visit to India along with the delegation of the German Chancellor Olaf Scholz. The possibility of suspending the sale of excavator machines to India was raised.
Ajit Gupte said that Germany is facing a big challenge in terms of demographics and the visa quota for Indian skilled workers has been increased to 90,000, which will help Indians not only in high-end sectors like IT or finance, but also in manufacturing sectors. medium and low level. sectors. I will also have the opportunity.
According to the information, the first news was quoting Ambassador Philipp Ackermann about increasing the number of skilled worker visas for Indians from 20,000 to 90,000 per year, due to the shortage of workers in Germany. This followed the announcement during Scholz’s visit to the seventh round of India-Germany Intergovernmental Consultations (7th IGC) and the 18th Asia-Pacific German Business Summit (APK 2024) in New Delhi last month.
Ajit Gupte added that “Germany is facing a big challenge in terms of demographics. The percentage of older people is higher, it is increasing. “They do not receive adequate compensation from the workforce for various reasons,” he said.
He also said that the issue of succession in many Mittelstand or mid-sized companies, which are global technology leaders and are looking for acquisitions, also provides opportunities for Indian companies.
“In Germany there are many Mittelstand companies. The Mittelstands are not really SMEs because they are all pioneers. Most of them are pioneers or experts in a certain technology, and many of them are world leaders in their field. Some companies bill up to a billion dollars,” said Gupte. “Now these Mittelstand companies are looking for new markets… They are looking for joint ventures, technological collaborations. Therefore, there are many opportunities for Indian companies to partner with them.”
“There is also the question of succession in many Mittelstands, where it may have been founded by someone and the founder may not have children,” Gupte said. “Or perhaps in some cases children do not want to practice the same profession. That is why in this case too many Mittelstands are considering possible acquisitions,” said Gupte. “Even in that area there are opportunities. “But it requires some research, hard work, a leap of faith and taking some risks.”
