India seen as the growth engine in Asia-Pacific, AHK survey shows

BERLIN: India remains the driving force for German investments in the Asia-Pacific region, according to a survey by the network of German Chambers of Commerce Abroad (AHK), seen exclusively by Reuters on Thursday.

The AHK World Business Outlook, which surveyed around 820 member companies in the Asia-Pacific and Greater China region, shows that 51% of the German companies based in India intend to increase their investments in the coming 12 months.

Economy Minister Robert Habeck travelled to India on Wednesday to open the biennial Asia-Pacific Conference of German Business.


Investment intentions in Greater China - which includes China, Taiwan and Hong Kong - are falling significantly, with 28% of the companies in China lowering their investment intentions for the coming year, the survey showed.

Although the business situation in China has recovered slightly, companies' investment plans have decreased significantly as diversification from China into other Asia-Pacific markets is continuing, according to AHK.

The current business situation of German companies in the Asia-Pacific region - excluding Greater China - reached a historic low in autumn 2024, according to the survey, with almost one in five companies rating their current business situation as poor.

Only during the 2020 pandemic was the situation assessed more negatively by local companies.

"Despite the gloomy current situation in many locations, our companies in Asia-Pacific are not discouraged and are optimistic about the future," said Volker Treier, head of foreign trade at the German Chamber of Industry and Commerce DIHK.

Half of the companies surveyed expect their local business to improve in the coming year, while only 8% anticipate a deterioration.