India continues to be a key driving force for German investments in the Asia-Pacific region, according to a survey conducted by the network of German Chambers of Commerce Abroad (AHK). This survey, which was exclusively seen by Reuters, revealed that 51% of German companies based in India plan to increase their investments in the next 12 months.
On the other hand, investment intentions in Greater China, which includes China, Taiwan, and Hong Kong, are declining. The survey showed that 28% of companies in China are reducing their investment plans for the upcoming year. While the business situation in China has slightly improved, many companies are looking to diversify their investments into other markets in the Asia-Pacific region.
The current business environment for German companies in the Asia-Pacific region (excluding Greater China) hit a record low in autumn 2024, with nearly one in five companies rating their current situation as poor. Despite this, companies remain optimistic about the future, with 50% expecting improvements in their local business in the coming year.
Economy Minister Robert Habeck recently traveled to India to open the biennial Asia-Pacific Conference of German Business. This indicates the significance of India as a key market for German investments in the region.
