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This week's edition takes a look at how India’s energy transition is moving ahead and provides opportunities for Europe, where the German businesses SAP and TRUMPF expand in India, and more must-know news.

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India's energy requirements are enormous, and growing fast. As the world's most populous nation powers its economic expansion, the country started to pivot towards clean energy and electric vehicles to reduce foreign dependencies. For European businesses, this transition presents both massive opportunities and competitive pressure, particularly in the automotive sector.

India ranks as the 3rd largest automotive market globally, yet European brands lag their domestic and East Asian competitors in terms of market share (see India Rising Issue 7). The trend towards electric vehicles (EV) is accelerating as sales grew elevenfold since 2020 and are expected to reach a share of 30% of all vehicle sales by 2030.

This EV surge will strain India's power grid significantly. While India already ranks as the world's third-largest renewable energy market and recently achieved its goal of 50% renewable capacity (though renewable generation remains around 30% of total output - see Issue 18), electricity demand continues climbing alongside economic growth:

Energy generation remains a critical topic for India’s economic progress and it’s in the country’s own interest to become less dependent on fossil fuels and therefore other countries. Recently announced major investments and developments support that shift:

This energy transformation creates concrete opportunities for European firms across the value chain:

TotalEnergies enjoys strong support by the Indian government for further investments and could be a blueprint for other Indo-European collaborations, particularly as I’d expect this transition to accelerate. The US-imposed penalty of additional 25% tariffs on India for acquiring Russian oil was not positively perceived by the Indian government and public, and confirms India’s need for higher energy sovereignty.

A stronger collaboration on clean technology and energy production between India and Europe could not only help both sides in becoming more self-reliant, as it was already entertained back in June by the European Council on Foreign Relations, but be an enormous market opportunity for European clean tech businesses. It’s time to seek them.

Sources: Ember, IndianWeb2, The Hindu, Reuters, BBC, European Council on Foreign Relations

Two major German companies took significant steps in India last week, signalling a broader shift in European business strategy. SAP inaugurated a large tech center in Bengaluru while TRUMPF opened its first manufacturing site in India. The different approaches confirm the same opportunity: capitalising on India as both a global talent hub and manufacturing powerhouse.

With senior participation from company internal stakeholders and governmental representatives alike, the German technology leader SAP inaugurated its new Global Capability Center (GCC) in Bengaluru. SAP already employs around 17,000 people across multiple cities in India, with Bengaluru being its key technology hub, and intends to almost double that at its new location.

The newly opened "India Innovation Park" is located near Bengaluru airport in Devanahalli and will be developed in phases:

The campus aims to foster closer collaboration with customers, partners, and academia. Strategic partnerships with the Technical University of Munich and IIT Madras will anchor the facility's research capabilities, positioning SAP to tap into India's engineering talent pipeline.

SAP's move reflects a broader industry trend. India's Global Capability Centers (GCCs) are projected to become a USD 100 billion industry by 2030, up from USD 65 billion today, according to Zinnov. European companies increasingly view these centers not as cost-efficient operations, but as strategic assets for accessing India's talent pool and fastest-growing major economy.

While SAP represents the services model, TRUMPF illustrates the manufacturing approach. The German industrial machine tool and laser technology leader inaugurated its first production site in India, located in Nighoje, Pune. The EUR 5 million facility will manufacture bending machines and lasers for the domestic market. A logical step for a company that has operated in India since 2006.

TRUMPF’s timing aligns well with increasing customer demand and India’s electronics manufacturing boom. The company’s products are used in many industries, and particularly serve electronics manufacturers. Electronic exports from India jumped by more than 47% year-over-year in Q1 of FY26, and the electronics manufacturing market is expected to grow to a USD 300 billion industry by 2030, as reported in previous issues. TRUMPF is positioning itself to serve this expanding customer base locally.

SAP's tech hub and TRUMPF's manufacturing facility represent two proven pathways for European companies entering or expanding in India's maturing markets. Whether through innovation centers or production sites, India offers European businesses access to talent, customers, and growth.

Sources: Indian Express, AnalyticsInsight, The Economic Times

Yesterday, Germany’s ARD broadcasted a short video in its Weltspiegel program about India’s ambitious infrastructure investments, and related developments.

The production focuses on large investments in India’s rail network as well as the need for broader investments in tier 2 and 3 cities.

Your random facts and stories about India and the Indo-European friendship.

This week: the history of India’s Independence Day - August 15th.

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