India on the upswing - a new driving force for the German economy?  [31.01.24]

India is becoming increasingly important. It is the fifth largest economy in the world, has high growth rates, and has been the most populous country since 2023. In 2022, the European Union and Indua relaunched negotiations for a Free Trade Agreement, and launched separate negotiations for an Investment Protection Agreement and an Agreement on Geographical Indications (GIs).

In his study, Dr. Timo Walter quantifies the effects of India's increase economic integration into the world economy on Germany on a basis of a Computable General Equilibrium model. He finds that if the Indian economy continues to grow
as it has in recent years and trade is liberalized to a large extent, the German gross domestic product (GDP) would grow by an additional additional 0.17 percent per year in the long term.

The study appeared at ifo Schnelldienst available at https://www.ifo.de/publikationen/2024/aufsatz-zeitschrift/aussenwirtschaft-im-wandel

Dr. Timo Walter holds a PhD in Economics from the University of Hohenheim. He works as a Senior Economist at Deloitte Economic Research.

Back to News