When the German Chancellor arrives in New Delhi, the headlines will focus on defence, geopolitics and climate coordination. Yet the more durable outcome of the visit may lie elsewhere- a deliberate effort to place micro, small and medium enterprises at the centre of the India-Germany economic partnership. This is not a marginal agenda. As supply chains fragment, sustainability rules harden and technology gaps widen, both governments increasingly recognise that large firms alone cannot carry growth. MSMEs will have to do much of the heavy lifting.

The global economic environment is shifting fast. Supply-chain diversification, tighter climate regulations and rising geopolitical risk are reshaping trade and investment decisions. In this context, the India-Germany partnership rests on clear complementarities. India is on course to become the world’s third-largest economy, with scale and demographic depth. Germany remains Europe’s industrial anchor, with deep strengths in engineering, automation and green technologies.

Both sides also face similar constraints. Germany’s growth is limited by labour shortages and rising energy costs. India’s challenge lies in upgrading productivity across millions of small firms that still operate with outdated machinery and thin margins. A structured MSME compact offers a way to address both problems at once.

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About the Author Juuhi Rajput is a PhD Scholar at IIT Delhi and Founder of the Alliance for Inclusion and Accessibility (I for Humanity Foundation). She brings multidisciplinary experience as a journalist, news anchor, entrepreneur, social justice advocate and through her work with the World Energy Council (London). Her professional portfolio spans policy advocacy and media strategy, with a focus on MSMEs, accessibility, inclusion, net‑zero transitions, and national development initiatives. She is committed to strengthening stakeholders at every level so they can collectively contribute to building an empowered India.