Chancellor Scholz visits India to explore trade opportunities and reduce reliance on China

German Chancellor Olaf Scholz is visiting India this week with a delegation to explore new trade opportunities. The aim is to lessen Germany's dependence on China amid ongoing economic challenges and a trade dispute with the EU. Germany's economy is facing a second year of contraction, prompting a shift in focus towards India. German companies are optimistic about India's growth, driven by a young workforce and a strong economy. In 2022, German direct investments in India reached about 25 billion euros, which is significantly lower than investments in China. Officials emphasize the importance of diversifying supply chains and reducing critical dependencies.