<a href="https://www.mid-day.com/business/business-news/article/european-auto-firms-are-exploring-manufacturing-opportunities-in-india-piyush-goyal-23656565" target="_blank" rel="none noopener">Commerce and Industry Minister Piyush Goyal</a> has said German companies increasingly considering India a strategic destination for manufacturing, research and development, according to news agency PTI.
Goyal, who concluded his two-day visit to Germany, said he held a series of bilateral meetings with representatives from companies including Siemens Healthcare, Bertelsmann Investment, Volkswagen and Skoda.
"The CEOs echoed one message - German companies no longer see India only as a market, but as their partner, as a base for manufacturing, for research and development, for innovation," he said.
The Union Minister said combining Germany&rsquo;s precision and research capabilities with India&rsquo;s talent and innovation-driven manufacturing potential will change the global perspective and outlook toward India.
<h2>India-EU free trade agreement</h2>
Goyal was on an official visit to discuss ways to boost trade and investments between the two countries and said the ties between Indian and Germany also open the door for talent, innovation, co-creating, co-designing, co-developing, and co-manufacturing.
"The focus of this visit has been to translate this partnership to greater levels of investment, industrial cooperation, and research and development," he said.&nbsp;
Goyal further said the success of the India-EU free trade agreement in the years to come will be measured by new business, new orders, greater investments, and technology partnerships.
<a href="https://www.mid-day.com/news/india-news/article/mother-of-all-deals-pm-modi-announces-india-eu-free-trade-agreement-23613890" target="_blank" rel="none noopener">The India-European Union (EU) free trade agreement </a>is expected to be signed by the end of this year and may come into force in the first quarter of 2027.
"Today the greatest imperative before German industry is to cut costs and become more competitive in global markets. Therefore, they are looking at manufacturing in a much greater degree in India. As regards their innovation and their design work, almost every company tells me about existing centers, GCCs, in a big way in India, where they employ lakhs of talented young boys and girls," he said.
<h2>German companies keen to expand operations</h2>
Goyal said that German companies are planning significant expansions, with most aiming to double or triple their operations over the next two to five years.
India has over 2,100 <a href="https://www.mid-day.com/news/india-news/article/indias-office-market-surges-to-record-q1-2026-absorption-as-global-capability-centres-lead-historic-leasing-boom-23624511" target="_blank" rel="none noopener">global capability centres (GCCs)</a> that employ millions of people, with individual centres ranging from a few hundred employees to several lakh, he said.&nbsp;
He added that German firms are looking at significant expansions, with most aiming to double or triple their operations over the next two to five years.
"That is the level of excitement about working in India... Gradually, this is obviously going to result in co-creation and co-innovation also. But I would like to go step by step. And I'd like to invite the German Institutes of Research and to come there and start working and take the next step forward for developing this partnership," he said.
<h2>Green initiatives</h2>
The minister said the European Union appreciates India's efforts to address climate change and its progress in meeting its commitments under the Paris Agreement. This includes exceeding its intended nationally determined contributions ahead of schedule.
European countries want to partner with India in areas such as green hydrogen, financial assistance and its green initiatives, he said.
<h2>EU's CBAM</h2>
On his comments on the <a href="https://www.mid-day.com/business/business-news/article/eu-inviting-disaster-by-imposing-carbon-tax-on-steel-piyush-goyal-23656550" target="_blank" rel="none noopener">EU inviting disaster through its Carbon Border Adjustment Mechanism (CBAM)</a> he said it was completely factual but added that in the current context, Europe was ahead of many other countries on environmental issues. He further said the bloc's partnership with India in this area was also progressing rapidly.
The minister during his visit had said that the EU is inviting "disaster" by imposing CBAM. "Who's responsible for this (climate change) mess in the first place? Where did this ozone layer get damaged? Who sent all that carbon up there?" he asked.
When a fellow panellist replied, "All of us", Goyal argued and said, "No, I'm sorry".&nbsp;
He pointed out that India's global carbon emission is less than 3 per cent despite accounting for 17 per cent of the world's population.
Mentioning the 2015 Paris Agreement, he said, "It was agreed that the developed countries, who have enjoyed the fruits of messing up the climate for so many decades, will pay a greater price and will support the developing and less developed countries. Eleven years later, we haven't seen a nickel or a dime of that. It's all promises".
"For good reasons... you were growing, you wanted low cost of energy. You blew coal day in and day out so that your energy cost remains low," he said while pointing out that European countries caused the problem.
(With inputs from PTI)

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German companies view India as manufacturing, R&D, innovation hub: Piyush Goyal

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