The lights, scale and energy of EXCON 2025 in Bengaluru tell a story that stretches far beyond an exhibition hall. For the Indian construction equipment and mining sector, the event has evolved into a barometer of industrial confidence and global alignment. But this year, the presence of German manufacturers—large corporations and Mittelstand innovators alike—signals a deeper shift in sentiment. Companies such as the Wirtgen Group, Schwing Stetter, Putzmeister, Bosch Rexroth, BAUER Maschinen GmbH, MANN+HUMMEL GmbH, Masa GmbH, ZF Group, BHS-Sonthofen, igus GmbH and others are not just exhibiting: they are assessing, positioning and in many cases, expanding their footprint.
The mood inside the German Pavilion is revealing. Conversations are no longer driven solely by product promotion; they revolve around partnerships, localisation pathways, supplier development, R&D collaboration and long-term strategic footholds in India. German engineering has always been admired here, but today the context has shifted: India is not only a market—it is an increasingly strategic node in global industrial diversification.
For years, India occupied an ambiguous space in the worldview of the German Mittelstand. It was recognised, sometimes cautiously admired, but rarely prioritised. China dominated manufacturing decisions; Southeast Asia offered comfort through proximity and familiarity. India sat somewhere in between—large, promising, but perceived as difficult to navigate.
That narrative is beginning to change—and EXCON 2025 is a clear proof point.
Many German SMEs now see India through a different prism: not merely as a potential market, but as a platform for growth, operational resilience and long-horizon industrial strategy. The mental question is shifting from “Should we consider India?” to “What model makes sense—technology licensing, joint venture, greenfield manufacturing, or a digital engineering hub?”
What catalysed this rethink?
Part of it is global realignment. The world is recalibrating its dependence on China and diversification is no longer optional—it is strategic insurance. In that new landscape, India stands out as one of the few nations offering scale, workforce depth, domestic demand and policy continuity at the same time.
Part is India’s rapid infrastructure momentum. Programmes such as PM Gati Shakti, the National Infrastructure Pipeline, logistics and industrial corridors and mining modernisation have created sustained long-term demand for construction and mining equipment—equipment that prioritises efficiency, sustainability, digital integration and lifecycle cost optimisation. The projected growth of India’s construction equipment sector to $35 billion by 2030 offers clarity: this is not a short cycle—it is a multi-decade buildout.
And part is cultural evolution. German firms visiting India today encounter not the industrial ecosystem of the early 2000s, but a more capable, organised, technology-enabled environment—where predictive maintenance, telematics, automation and fleet analytics are becoming mainstream.
Still, legacy perceptions linger. Some German SME leadership teams continue to associate India with bureaucracy, unpredictable timelines, or cultural friction. These aren’t entirely unfounded memories—but they are increasingly outdated. Today, most remaining barriers feel psychological rather than structural: leadership comfort, market familiarity and cautious decision-making cycles.
Yet, those who have already made the leap tell a different story. Companies such as Schwing Stetter and Wirtgen have demonstrated that localisation, when combined with German engineering DNA and India’s cost advantages, creates not just a viable business—but a competitive global model. Their suppliers have matured, their Indian engineering capabilities have deepened and the ecosystem surrounding them has expanded.
That success has not gone unnoticed.
What makes the current moment distinct is the alignment of capabilities. German SMEs excel in precision engineering, sustainability frameworks, automation and safety systems. India contributes scale, competitive cost structures, rapid iteration and a digitally evolving workforce. Five or ten years ago, the question of compatibility remained open. Today, the synergy feels natural—even inevitable.
This dynamic is especially compelling in high-growth collaborative opportunity zones now shaping discussions at EXCON:
- Next-generation construction and mining equipment with embedded digital intelligence
- Hydrogen-ready and hybrid propulsion systems
- Industrial automation, robotics and sensing technologies
- High-performance materials and wear components
- EV platforms and advanced energy storage tailored for CE duty cycles
Increasingly, these conversations are not about selling machinery, but about co-developing solutions suited to India and the Global South—markets where affordability and lifecycle economics intersect with sustainability and productivity demands.
German SMEs are also beginning to recognise India not only as a customer base, but as a partner in innovation. The rise of engineering R&D centres and digital product development hubs is reshaping how global OEMs think about India—not just as a production or sourcing base, but as a contributor to product evolution.
Policy stability has helped. Ease of doing business improvements, industrial incentives and bilateral frameworks—supported by Indo-German cooperation under the EU Global Gateway and Make in India—are building institutional confidence. Supply chain depth is expanding and India increasingly compares favourably with Vietnam, Poland, or Mexico—not because it is cheaper, but because it offers scale combined with domestic demand.
Across discussions at EXCON, one theme stands out: the relationship between India and the German Mittelstand is moving from transactional to strategic, from exploratory to intentional.
The shift is not uniform. Some German firms remain cautious; others are accelerating. But the direction is unmistakable. India is moving from the periphery to the centre of long-term planning.
What comes next will likely define the next chapter of Indo-German industrial collaboration: models of deeper cooperation—joint ventures, licensing arrangements, R&D partnerships, component clusters, talent hubs and manufacturing bases that do more than assemble—they innovate, customize and export.
In that sense, EXCON 2025 feels like more than a trade show. It reads as a transition point—a moment when German engineering heritage and India’s industrial momentum are beginning to converge in a way that could shape both markets for decades.
For many Mittelstand firms, India is no longer merely visible on the horizon.
It is entering the map.
And increasingly, it is becoming a destination.
(The writer is a Mumbai based CE sector analyst, author and consulting editor)
