Study: Shifting Gears. Why India matters for German mechanical and plant engineering companies

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t +49 (0) 89 1250 1590
presse@munich-strategy.com
Matthias Riemann
David Kopczynski
STUDY
12 / 2025

Study: Shifting Gears. Why India matters for German mechanical and plant engineering companies

Our study shows: India offers German machinery and plant engineering companies a wide range of growth opportunities – as a fast-growing sales market, as an increasingly capable manufacturing base and as a hub within global value chains. At the same time, international competition is intensifying; those who act too late risk losing market access, pricing power and customer proximity to global and local players.
In “Shifting Gears,” Munich Strategy analyzes where German mid-sized companies stand compared to international competitors, how a differentiated market entry can succeed and which strategic decisions are required now to secure market share sustainably.

For the study, we conducted extensive market research, evaluated company and trade data and held interviews with industry experts in Germany and India. The analysis covers different market-entry scenarios, location options and success factors across the entire value chain – from engineering and production to service.

India: From “future market” to strategic must-win market

India is growing strongly across all key industrial segments – driven by urbanization, infrastructure programs, production shifts (China+1) and a young, economically advancing population. For German machinery and plant engineering companies, this means: market access will increasingly determine scale, innovation capability and competitiveness. Companies that are not present locally now, risk falling behind in critical growth industries.

Success in India requires market and location proximity

The study clearly shows: exporting alone is no longer sufficient. Winners combine engineering expertise from Germany with production, sourcing and service capabilities in India. Key success factors include, among others:
  • locally competitive cost structures,
  • product adaptations for Indian use cases,
  • scalable sales and service models.
Companies that established local supply chains early and built strong customer proximity are already measurably outperforming international competitors.

The time to enter and expand is now

India is investing heavily in industry, logistics, and energy and offers attractive entry points for German mid-sized companies. The study also shows, however, that:
  • strong local competition,
  • price and margin pressure,
  • complex conditions regarding regulation and partnerships
require a clear strategy.
Companies that launch pilot projects today, secure local partnerships and industrialize their offering can build a sustainable first-mover advantage.

Content (excerpt)

    • Positioning India as a growth market for machinery and plant engineering
    • Analysis of key target industries and demand drivers
    • Assessment of market-entry and location options for German companies
    • Competitive landscape: local suppliers, international players, market dynamics
    • Local requirements for product, pricing and service
    • Strategic success factors for market entry and scaling
    • Recommendations for action for companies in different starting positions
    • Scope: approx. 40 pages
CONTACT

Connecting knowledge.

Would you like to understand what the current momentum in India specifically means for your business as a machinery or plant engineering company – and how you can capture the opportunities in the market? We would be happy to act as your sparring partner on all strategic questions related to market entry, site selection and local growth.
If you would like to order our study (fee: EUR 299.00 plus VAT) as a PDF, please, email your billing address to presse@munich-strategy.com.
Munich Strategy is an international management consultancy focused on machinery and plant engineering, the building and construction materials industry and adjacent sectors. We develop growth and internationalization strategies for leading companies in these industries, support mergers & acquisitions and drive transformation programs.

Your contact

Munich Strategy GmbH & Co. KG
Türkenstraße 5
80333 München
t +49 – 89 – 1250 1590
presse@munich-strategy.com

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