Pune's status as a major hub for German companies remains strong, but critical infrastructure gaps in key industrial zones are posing significant challenges for investors. This dual narrative was highlighted by Christoph Hallier, the German Consul General in Mumbai, during a recent business event in the city.
Infrastructure Deficits Cloud Chakan's Potential
Speaking at an event organized by the Indo-German Chamber of Commerce and the Indo-French Chamber of Commerce in Pune on Saturday, Hallier pointed out that land availability, energy infrastructure, and local transportation are persistent hurdles. These factors directly influence decisions on new or expanded investments in the region.
His comments specifically addressed the ongoing issues in the Chakan industrial belt, a critical cluster for German manufacturing operations. The area suffers from severe deficits, including:
- Poor road quality leading to frequent accidents and chronic traffic congestion.
- Recurring power failures, especially during the monsoon season.
Industry associations have repeatedly raised these concerns with the Maharashtra state government, seeking urgent remedial measures.
Pune's Unmatched Strengths for German Industry
Despite the infrastructure bottlenecks, Hallier was emphatic that Pune continues to be a preferred destination for German capital. "Pune is the city in India with the strongest German footprint," he stated.
He elaborated on the city's advantages, which include faster connectivity to Mumbai, a robust talent pool with thousands of graduates entering the workforce every year, and an excellent industrial ecosystem, particularly in the automotive and automation sectors.
"As a state, Maharashtra holds a very special place in Indo-German relations as it is the centre of German manufacturing in India," Hallier added.
Maharashtra Dominates German FDI Inflows
The Consul General underscored Maharashtra's commanding position in attracting German investment. He revealed that over the past five years, the state has attracted a staggering 50% of all German Foreign Direct Investment (FDI) coming into India.
According to data from the Department for Promotion of Industry and Internal Trade (DPIIT), India received Rs 12,571 crore in FDI from Germany between the financial years 2022 and 2025. In a broader context, Maharashtra attracted nearly Rs 7 lakh crore in total FDI from all countries between 2019 and 2025, accounting for 31.4% of India's total foreign investment during that period.
Broader Indo-European Trade Outlook
Hallier also touched upon the wider economic partnership between India and Europe. He noted that while German and French companies are competitors in some sectors, both nations have established the European Union (EU) as a vital partner for India.
Expressing optimism on the ongoing trade talks, he said he hopes negotiations for the India-EU Free Trade Agreement (FTA) will conclude as scheduled—either by the end of 2025 or early in the following year. The successful conclusion of this pact is expected to significantly boost bilateral trade and investment flows.
