Germany bets on India to reduce reliance on China

23/10/2024 7:21

        hancellor Olaf Scholz leads a high-level delegation to New Delhi this week, betting that greater access to the vast Indian market can reduce Germany's reliance on Beijing even if India does not turn out to be the "new China".
        
        From cars to logistics, German companies are largely optimistic about India's growth potential, tapping into a wealth of skilled young workers, a cheaper cost base and economic growth motoring at around 7%.
        
        The visit comes at a delicate time for Germany, whose export-oriented economy faces a second year of contraction and worries over a trade dispute between the European Union and China that could rebound on German companies.
        
        Stung by its problematic reliance on cheap Russian gas before the Ukraine war in 2022, Germany has pursued a strategy of "de-risking" from, or reducing its exposure to Beijing.