India still offers significant growth opportunities for many German companies, according to a survey published on Tuesday by the Indo-German Chamber of Commerce (IGCC) and the auditing firm KPMG.
The survey gathered data from 85 Indian subsidiaries of German corporations as well as companies with India-related activities in Germany.
The results revealed that 78% of those surveyed expected rising sales, and 55% anticipated higher profits for the current financial year.
The participants stated that India's attractiveness is due to its low labour costs, political stability, and skilled workforce. However, they also pointed out that bureaucratic hurdles, corruption, and the tax system pose major challenges.
The long-term outlook is positive, with most of those surveyed planning to make new investments in the next five years.
The chief executive of the Indo-German Chamber of Commerce, Stefan Halusa, highlighted the increasing importance of India as a regional production centre and global development location.
India is presently the world's fifth-largest economy, as measured by gross domestic product (GDP), a key indicator of economic performance.
According to experts, India, with its strong economic growth that is attracting many investors, will soon overtake the German economy.
Halusa expects that there will be continued economic stability, even after the loss of absolute majority by Prime Minister Narendra Modi's party in the parliamentary elections, resulting in the need for a coalition government.
Halusa specifically expects continuity in terms of infrastructure investment and incentives to promote industrial job creation.
The survey took place between April 9 and May 20.