15% of German Firms Plan Supply Chain Expansion in India Amid Growing Appeal

According to a recent DZ Bank survey, German businesses are becoming more interested in India; 15% of them intend to extend their supply chains there. When compared to autumn 2022, when the percentage was a little over 10%, this is a notable increase. Large and medium-sized businesses with yearly sales of at least 50 million euros find India particularly appealing; nearly one in four of them intend to increase their trade connections. Compared to roughly 15% in the fall of 2022, this represents a significant increase. Food, chemicals, plastics, metals, vehicles, and mechanical engineering are among the industries that benefit from India's appeal. Still, the nation is less attractive to the electrical industry. A Renewed Interest in China China is becoming more significant for German businesses as a commercial partner at the same time. By autumn 2022, the number of businesses planning to leave China had surpassed the number of businesses still operating there. 17 percent of respondents now anticipate China to become more important for their organization within five years, reversing the previous trend. However, about 10% of medium-sized businesses intend to cut back on their trade with China. Claus Niegsch, an industry analyst at DZ Bank, states that "China remains an indispensable partner for medium-sized companies due to the wide range of goods, low production costs, and close integration." He points out that businesses'