Saarland companies rely on India: exports are booming!

Saarland companies rely on India: exports are booming!

The Saarland industry has a good sense of the opportunities that the Indian market offers. With around 1.5 billion inhabitants, India is not only a power in terms of population, but also a growing market for products from Germany. As SR.de reports, trade relations between Saarland and India have picked up significantly in recent years.

In particular, the Saarland Chamber of Industry and Commerce (IHK) has decided to further promote trade relations. Oliver Groll, head of the IHK's Foreign Trade Competence Center, emphasizes how important it is to open up new markets. Demand for German products in India is growing, especially in the areas of steel, auto parts and machinery. Exports from Saarland to India currently make up around 1% of Saarland's total foreign trade, but already amount to around 172 million euros.

Successful exports and future plans

An example of the flourishing trade between Saarland and India is SGGT Hydraulik from Neunkirchen. Managing director Gregor Przybylla reports an increase in the share of sales in India from 9% to almost 25%. The company is even planning to open a location in India, which underlines the ambitions of the Saarland company to position itself in this market.

In 2024, bilateral trade in goods between Germany and India reached a new record of $33.4 billion - an increase of 0.5% compared to the previous year. These positive developments in German-Indian trade relations were also underlined by the GTAI, which shows that Germany generated a trade surplus of around US$3.2 billion in 2024. Machinery, chemical products and aircraft are the main goods exported to India.

Strategic importance and challenges

The strategic importance of trade relations is also emphasized by the Economic Council. Trade has almost doubled since 2016, with Germany being India's top trading partner in Europe. However, there are also challenges, such as bureaucracy, which deters Indian professionals due to language barriers and opaque processes. This means that highly qualified specialists often prefer other countries such as the USA or Canada.

The economic outlook also makes it clear that India will continue to grow robustly in the next few years. An increase in economic output of 6.5% in the 2025/2026 financial year is forecast. With such growth, demand for German products could also continue to increase. An EU-India free trade agreement has been discussed since 2007, but it is unlikely that an agreement will be reached by 2024 due to political realities in both regions.

Overall, developments in trade between Germany and India show that there is a lot going on here. Saarland companies seem to be well prepared for the opportunities and with a clear strategy they could perhaps benefit even more from this dynamic market in the future.