This year, the world's largest industrial trade fair in Hanover had a special focus on “India”. The partner country was present with several hundred companies as well as leading representatives from business and politics. With the “Make in India” campaign, the subcontinent presented itself as an emerging economic power and an attractive production location in the future. A review by Dr. Wamser + Batra GmbH.

This year's Hannover Messe is over. And India was very present as a partner country not only due to the almost 400 Indian companies and a ubiquitous advertising campaign with the “Make in India” lion, but also a number of declarations of intent were signed between German and Indian associations and the respective governments.
Time for euphoria? Certainly not.

Because of the Indian government's previous announcements, hardly any measures have actually been implemented. And in 2006, when India was already a partner country for the trade fair, many promises were made that ultimately led to (over)euphoria. However, the expectations of the German economy were sometimes seriously disappointed in the following years.
So everything is as usual? Certainly not!

“Unlike in the past, in which political programs and announcements per se remained very vague or only illuminated a few parts of Indian reality or some grievances, such as corruption, were even completely negated, the new government dares to take care of India “For the first time, Prime Minister Modi has actually approved a very courageous and comprehensive reform package,” explains Dr. Johannes Wamser. In this way, the existing grievances in administration, infrastructure and politics are addressed in a ruthlessly self-critical manner and measures that will have an impact are shown. It is not really surprising that their implementation cannot be achieved “in a flash”, because the willingness of everyone involved in politics and administration will not be there from the outset. Because where bureaucracy is to be reduced and corruption prevented, there are also those who have benefited from it in the past and are now fighting hard to lose their power. In addition, the new government under Prime Minister Modi currently does not have a majority in the upper house of the Indian Parliament. Indian industry, which will have to compete with foreign competitors and their often mercilessly superior technologies in the future, is also trying to delay or prevent important reform processes.

There is hope! Because Modi appears to be the first prime minister in decades who is trusted to assert himself and his ideas in his home country. On the one hand, his coalition has a stable majority in the lower house of parliament, which was last seen in India in the 1980s. On the other hand, in his past as Prime Minister of Gujarat he has proven that he can assert himself against internal resistance and transform the state into a more attractive destination for foreign investors. Both at the events during the opening of the Hannover Messe and in direct discussions with company representatives (such as here with our Managing Director Mike D. Batra, photo), Indian Prime Minister Modi welcomed the increased interest of German business in India and assured that India is clearly growing will strive more actively than in the past to remove existing obstacles for investors.

What this means for each individual company remains to be seen and must be considered on a case-by-case basis. What must not happen is that companies – as in the 2000s – go to India “over-euphorically” only to be surprised by the “harsh reality” there. Conversely, it would be just as wrong to ignore India. India's long-term opportunities and demographic potential are too attractive to ignore the subcontinent. This means that before a company enters the market, a very specific and individual consideration of the potential, the existing market segments but also the special features, difficulties and the need for adjustments must be carried out. A core task of our WB Market Solutions ®.

Mike D. Batra then took the opportunity to thank Prime Minister Modi for his government's significantly increased willingness to reform and reported on Dr. Wamser + Batra GmbH continues to bring German companies to India with sustained success.

Dr. Wamser + Batra – experience and expertise for India. [further]