Bengaluru, Oct 5 (PTI) German Mittelstand companies are increasingly looking to India not merely as a source of talent and cost efficiencies, but as a strategic partner for engineering, AI, digital transformation, research and development, and product innovation, a new report released by the IGCC said on Monday.
Titled “Reimagining Global Capability Centers (GCCs) for the German Mittelstand: India as a Strategic Value Hub,” the report by the Indo-German Chamber of Commerce (IGCC) was unveiled as a prelude to the upcoming Indo-German Engineering Summit, scheduled to be held in Bengaluru on October 7, officials said.
The report examines how India, and Bengaluru in particular, is emerging as a strategic capability hub for German Mittelstand companies across engineering, technology, AI, innovation and R&D, they said.
According to Jan Noether, Director General, Indo-German Chamber of Commerce, for the German Mittelstand, India is no longer only a market or a talent destination; it is increasingly becoming a strategic capability partner.
“The opportunity lies in building deeper engineering, technology and innovation linkages that create value for both the German parent companies and their Indian operations. Bengaluru, with its exceptional engineering talent and technology ecosystem, is uniquely positioned to support this next phase of the relationship,” he said in a statement.
Some of the key findingsof the report revealed that with more than 2.3-2.5 million STEM graduates entering the workforce every year, India offers German companies a large and increasingly specialised engineering talent pool.
The report notes that this is particularly relevant as German companies face persistent shortages of skilled professionals in engineering, software and IT, it said.
Besides this, India also offers an established technology ecosystem, the focus is shifting from cost to capability and the quality of the local ecosystem matters as much as the talent pool, it said.
“Bengaluru’s advantage is the depth of its ecosystem: The report’s argument is not simply that Bengaluru has a large work 1 of 3 lies in the combination of engineering talent, experienced GCC leadership. Companies, universities, startups and supporting infrastructure allow companies to build focused engineering hubs and scale them over time,” it said.
The upcoming Indo-German Engineering Summit on October 7 will bring together industry leaders to explore how the two countries can deepen engineering partnerships and create shared global value, the official statement added. PTI AMP KH
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