German investors are attracted to Tamil Nadu because of its advanced infrastructure, young and talented manpower and stable govt, says consul-general of Germany in Chennai, Michaela Küchler. In an interview to TOI, she speaks about future investments by German companies and a partnership between Saxony and Tamil Nadu. Excerpts:
How many German companies operate in Tamil Nadu and which are the top five?
There are more than 120 German companies in Tamil Nadu, which include 100% subsidiaries and joint ventures. Major industrial sectors where German companies operate are auto and auto components, machinery for construction industry, information technology, footwear, and insurance. The top five German companies in Tamil Nadu are Daimler India Commercial Vehicles, BMW, Siemens, Schaeffler, and Schwing Stetter.
Are more German companies looking to set up manufacturing or service sector facilities in Tamil Nadu?
Yes, many more German companies plan to do so. For instance, a company named Startup Factory is coming to Tamil Nadu. It will help German entrepreneurs who want to invest in Tamil Nadu. It will offer office space and help to find land and so on. The company also has operations in countries such as China.
What attracts companies from Germany to Tamil Nadu and to which sectors?
Tamil Nadu is a prominent location in India for German investors due to the advanced infrastructure, highly qualified, young and talented manpower and a stable govt with good political leadership. The bilateral relations in Tamil Nadu are mostly in the two industrial hubs where German companies are invested or have business partners — Chennai and Coimbatore. And I think what always speaks in favour of Tamil Nadu is the high level of education and high level of skilled workforce, especially women. There is also land available, which is important to set up factories. The Tamil Nadu govt actively supports companies that want to come here. The sectors that German companies are interested in are manufacturing, shipping, logistics, consumer electronics, power, green hydrogen, and semiconductors.
How many companies from Tamil Nadu operate in Germany?
Around 25 Tamil Nadu companies operate in Germany spread across information technology, manufacturing, and automotive sectors. The interest of Tamil businessmen and businesswomen in Germany is big and vice versa. This is a reciprocal interest.
How do you see the relationship between Tamil Nadu and Germany growing?
We might think of an official partnership between Tamil Nadu and a German state. We already have two official partnerships. One between Bavaria and Karnataka and another between Baden-Württemberg and Maharashtra. Saxony is interested in having an official partnership with Tamil Nadu. This will boost relations. They are very strong in semiconductors. They have Silicon Saxony, where they operate semiconductor companies. So, that’s something really interesting to explore.
There is no direct free trade agreement (FTA) between India and Germany. However, negotiations are underway between India and the European Union (EU) on an FTA. What is its status?
Trade between India and Germany follows the rules of the WTO. We are looking forward to a swift conclusion of the FTA with the EU. German Chancellor Olaf Scholz underlined at the Indo-German govt consultations in Delhi in Oct 2024 that he wishes to see the FTA negotiations concluded as soon as possible, to give bilateral trade and investments a boost. We are interested in swift closure of these talks because we are an export-oriented economy.
