Hey Risers
We are celebrating India Rising’s first birthday this week and it’s time to reflect. A lot has happened over the past year and I’d like to thank you for being part of this journey! It’s great to have you here.
Here are the topics of this week:
The 9th Edition of the “Make In India Mittelstand” Confirms Urgency to Act and Partner
With developments at Deutsche Bank, L’Oréal, and others, M&A activity in the Indo-European corridor is heating Up
And much more.
India Rising Perspective by Zinnov - “Engineering Europe’s Future with India”: We published the second issue of Zinnov’s India Rising Perspective last Friday. “From Capability Hubs to Innovation Engines: How European GCCs Are Evolving in India” is part of a five-part series by Mohammed Faraz Khan, Partner at Zinnov. Check it out and find my main takeaway at the end.
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Number of the Week
4,000
The number of German companies that view India as primary investment destination.
Rise of the Week: The 9th Edition of the “Make In India Mittelstand” Confirms Urgency to Act and Partner
Last week, I attended the 9th edition of the Make in India Mittelstand (MIIM) event, bringing together German businesses, political leaders, and industry representatives to understand and explore the Indo-German economic partnership. The message was clear and consistent across all speeches, panels, and networking discussions: India is no longer an option for the German Mittelstand, but becoming a strategic necessity.
Indian Ambassador to Germany, Mr. Ajit Gupte, addressing the audience. Photograph by Peter Paul Pratter (2026)
The German Mittelstand is increasingly seeking opportunities in India, but still has a deeply rooted lack of market knowledge that the event at the Indian Embassy to Germany in Berlin tries to improve. “Make In India Mittelstand” is a program integrated in the “Make In India” program to attract domestic investments and facilitate market entry especially for German SMEs, and partners with various industry partners.
The Numbers Tell a Macro-Economic Shift and Growing Partnership
The event started with political statements by senior representatives from both the Indian and German government. India’s Ambassador to Germany Mr. Gupte opened the event with a data-driven overview of where the Indo-German partnership stands today:
EUR 190 million in new commitments this year alone and 49 new companies joined the MIIM program
German companies committed EUR 7.1 billion in investments in India in the last two years
The DIHK (Association of German Chambers of Commerce) reports over 4,000 German companies now view India as a primary investment destination
93% of surveyed companies expect revenues from India to increase by 2030
GCCs operated by Mittelstand companies have more than doubled in the past five years (see also my past reports)
Total trade between Germany and India reached USD 252 billion in 2025, representing 26% of India's total trade with the EU
More importantly, companies are increasingly using India not just as a domestic market but as a base for exports. This confirms the structural shifts I keep reporting about.
Dr. Thomas Steffen, State Secretary at the Federal Ministry for Economic Affairs and Energy, reinforced the political dimension: governmental ties are strong and industry is expected to follow. He framed the geopolitical context directly:
If you lose close friends, you need to look for new and even better friends — and that is India.
Recent developments certainly confirm these strengthening ties. The EU-India Free Trade Agreement was once again highlighted as a clear signal to the world and Dr. Steffen also announced a German government delegation to India for Q4 2026 to further deepen economic and political ties.
From Corporates to SMEs
The discussion quickly shifted to an economic and business level. “India and Germany for Resilient Supply Chains”, the first panel, featured representatives from Siemens Energy and Deutsche Bank, both of whom offered a compelling picture of India's strategic weight at the corporate level and key learnings for SMEs alike.
Panel at 9th Make In India Mittelstand event. Photograph by Peter Paul Pratter (2026)
Siemens Energy has been present in India for over 100 years. With 10+ production sites, 5+ capability centers, and more than 8,000 employees, India is reportedly 3x more profitable than its average market globally. The company is actively exporting from India and is integrating the country into its green hydrogen strategy, with electrolyser assembly planned locally and gas turbines set to be 100% hydrogen-ready by 2030.
On the other hand, Deutsche Bank has seen some transformation (see also Other Risers in today’s issue). The bank injected USD 600 million into its India operations in recent years, with 1 in 5 of its employees globally now being based in the country.
Their confidence is based on the following rationale:
Factor | Relevance |
|---|---|
Market size | One of the world's largest and fastest-growing |
English language | Operational advantages |
Young population | Long-term talent pipeline |
Democratic system | Institutional trust |
Energy access & resources | Strategic depth |
EU-India FTA | Clarity for trade and investment |
These conditions that make India work for large corporates, especially talent depth, market scale, export potential, and a maturing regulatory environment, are the same conditions that are increasingly accessible at the SME level. GCCs, local manufacturing, and export-oriented operations are therefore becoming increasingly important for the German Mittelstand as well.
Panel at 9th Make In India Mittelstand event. Photograph by Peter Paul Pratter (2026)
The second panel featured a mixed group of Mittelstand companies that are at different stages of their India story, and shared their Dos and Donts. Some key themes to be aware of underline the market specifics and trajectory:
Ecosystems are substantially increasing and key customers are moving: Fibro mentioned that its key customers such as Apple, Siemens, and Mercedes-Benz are relocating production of high-precision components to India. The company plans to double its domestic production over the next 10 years.
External support necessary: India is a specific market and you require external support to manage through it. Groz-Beckert learned this the hard way after three failed due diligence processes without external support, or Lorenz Food by underestimating the regulatory environment.
Trust and autonomy: Multivac entered via a joint venture partner and learned to let go. Local teams require autonomy and trust, as excessive control is counterproductive.
IP protection requires pragmatism: Focus on embedding knowledge within the company, invest in training and education, and ensure people exchange across the organisation rather than treating IP as a purely legal question.
Time to Act Now
Across both panels and the broader discussions, the sense of urgency was consistent and confirm what I’ve been sharing sector-independently over the past year. Companies already present in India are deepening commitments, expanding production, and integrating the country into global supply chains, and late movers will face an increasingly competitive landscape. More importantly, the EU-India FTA sharpens this dynamic even further, supporting both increased exports from Germany and the buildout of India-based operations within global value chains. New sectors, notably defence and security, are opening alongside the established ones, widening the opportunity set especially for businesses with customers across different sectors.
One points remains crucial: The right mindset. Every company that struggled did so by underestimating the need for local knowledge and local partners. Every company that succeeded invested in both early, gave local teams genuine autonomy, and committed for the long-term rather than treating India as an experiment.
For European businesses still evaluating India from the sidelines, the MIIM discussions made one thing clear again: the time for evaluation has largely passed and its time to execute.
Sources: Make in India Mittelstand (2026), BVMW, DIHK/AHK, Siemens Energy, Deutsche Bank
What Else is Rising?
M&A Activity in the Indo-European Corridor is Heating Up
Deutsche Bank, L’Oréal, and STEAG Energy are the latest examples of an increasingly active M&A market between European and Indian businesses. While the German players announced the sale of Indian subsidiaries, the French cosmetics leader is betting large on India’s growing consumer market. Taken together, these deals reflect a broader pattern: European corporates are actively rebalancing their India exposure, and the direction of that rebalancing is anything but uniform.
FDI into India remains high, with the first three quarters of FY2026 (April–December 2025) reaching USD 73.31 billion and outperforming most of the past decade. Cross-border M&A are a key contributor, as portfolio rebalances and focused acquisitions remain central corporate strategies. This week's announcements reinforce that trend.
Deutsche Bank sells retail banking to Kotak Mahindra Bank
Deutsche Bank is reportedly close to completing the sale of its Indian retail banking business and has chosen Kotak Mahindra Bank as buyer. According to Reuters and The Economic Times, the transaction covers all 17 branches and is valued at INR 45 billion (around USD 480 million). Official confirmation remains pending.
The move follows a pattern that has become familiar in Indian financial services. Citi sold its credit card and retail business to Axis Bank for USD 1 billion, and Standard Chartered divested its personal loan portfolio for USD 488 million. India's retail banking market is competitive, scale-driven, and increasingly dominated by domestic players — a dynamic that has steadily squeezed the economics for foreign banks without the network depth to compete.
German STEAG Energy exits India and sells subsidiary to Bluspring
STEAG Energy, a leading service provider in the conventional and renewable energy industry, agreed to sell 100% of its India subsidiary to Bengaluru based Bluspring Enterprises for INR 180 crore (around EUR 16 million). For STEAG Power GmbH, the exit reflects a broader strategic refocus on Germany's energy sector. For Bluspring, the acquisition adds over 7 GW of managed assets to its infrastructure portfolio.
L'Oréal bets big on India's D2C beauty boom
L'Oréal is moving in the opposite direction. The French beauty giant is in advanced negotiations to acquire a majority stake in Innovist, a digital-first personal care company behind brands including Bare Anatomy, Chemist at Play, Sunscoop, and Vinci Botanicals. The deal is reportedly valued at USD 350 to 450 million (approximately INR 4,000 crore) and has been in discussion for close to a year.
L'Oréal’s Innovist acquisition is a confirmation of India's fast-growing and highly competitive D2C beauty segment, and a response to slowing organic growth of around 5% last year. It would also surpass Hindustan Unilever's INR 3,000 crore acquisition of Minimalist as the largest deal in India's consumer beauty startup space.
These deals are no outliers as India’s M&A market reached record highs in 2025. According to Grant Thornton’s deal tracker, M&A activity summed up as follows:
963 M&A deals in 2025
+41% growth year-over-year in number of deals
USD 60.2 billion total volume
+36% growth year-over-year in total volume
India is increasingly important as a strategic portfolio destination. European businesses need to actively manage their presence and corporate strategy in order to be successful in this highly competitive and well financed market.
Sources: The Economic Times, Reuters, Department for Promotion of Industry and International Trade, The Hindu, APN News, IndianWeb 2, Grant Thornton Bharat Annual Dealtracker 2025
Quick Risers
City of Berlin opens office in Bengaluru, third after New York and Beijing, to support Berlin based businesses in entering the Indian market. (Source: Die Zeit)
Foreign investors pulled out around USD 9.6 billion of Indian equities so far in March 2026 due to the war in Iran and its economic implications. (Source: The Economic Times)
German Bertelsmann leads USD 31 million round for rural commerce startup Rozana. (Source: DealStreet Asia)
London’s Barclays is reportedly considering to re-enter the Indian market and offer equity capital market (ECM) services. (Source: The Economic Times)
Honeywell sets up Center of Excellence with IIT Bombay for sustainability and innovation. (Source: IndianWeb2)
Spotlight: Zinnov Confluence 2026
Over the past 19 years, Zinnov’s Confluence summit has evolved into one of the biggest global platforms for technology and business leaders to exchange insights and shape the future technology landscape.
The 2026 edition of Zinnov Confluence will deep-dive into key aspects of Global Talent and Technology, and how to make big bets while keeping human wisdom at the heart of decisions. It will take place in Bengaluru on August 19th and 20th.
Curiosity Corner
Your random facts and stories about India and the Indo-European friendship.
This week: The Mittelstand in Germany and India
The Mittelstand is often described as the backbone of the German economy, but it is as much a cultural tradition as an economic one and rooted in craft, multigenerational ownership, and a long-term view of business that resists short-term pressure. India's family-run business culture shares more of that DNA than most would expect. The same emphasis on technical mastery, continuity, and reputation built over decades runs through both.
India's business landscape has been shaped by trading and artisan communities — the Marwaris, the Gujaratis, the Chettiars — whose commercial networks stretch back centuries and whose family conglomerates are still passed from generation to generation with a similar sense of stewardship. Add to that India's deep tradition of specialised craft production, from textile clusters in Surat to precision engineering hubs in Pune, and the parallel becomes harder to dismiss.
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