German Chemical Firm to Invest $1.5 Bn in India: Commerce & Industry Minister

One of the top German chemical firms will be investing $1.5 billion in India, with a state already identifying a site for the project. The development was announced by Commerce and Industry Minister Piyush Goyal, who highlighted India's enhancing business climate and increasing attraction to foreign investors.

India is set for a significant foreign direct investment (FDI) surge as the German chemical company pledges its $1.5 billion project. In a statement on Saturday, Goyal stated that a state government has allocated land for the project, although he did not state the name of the company or the location. He further stated that the head of the company is due to meet the state's chief minister soon to seal the allotment. Speaking at the Union Internationale des Avocats (UIA) session, Goyal emphasized the importance of the investment, saying, "The Company will have the allotment of land in his hand, and we will have a billion-and-a-half dollars of foreign direct investment coming into the country over the next 12 months."

The firm is said to be looking for around 250 acres within close proximity to a port to facilitate exports and logistics. Presently, Germany is India's ninth-largest investor with a projected $15 billion FDI between April 2000 and December 2024. This new investment is a measure of increased global corporate interest in India's industrial and manufacturing sectors. Goyal underscored that some companies are viewing India more as a location for business because of changes in regulations and greater ease of doing business. He also reiterated the government's intent to lower regulatory hurdles by asserting that measures like streamlining requirements to comply and de-criminalizing lower offenses have already been making the economy more investor-friendly.

Additionally, the minister assured that the government is prepared to solve legal problems or unfair competitive activities faced by foreign investors, including those involving predatory pricing.