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German chemical firm plans $1.5 billion investment in India, says Goyal

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German chemical firm plans $1.5 billion investment in India, says Goyal
File photo – Piyush Goyal

Commerce and Industry Minister Piyush Goyal announced on Saturday that a German chemical company will invest USD 1.5 billion in India, with a state already having identified land for the project.
While the minister did not disclose the name of the company or the state involved, he mentioned that the company’s head is expected to meet with the state’s chief minister on Sunday, according to news agency PTI.
The company will be granted land allocation, and over the next 12 months, the country will see a significant inflow of foreign direct investment (FDI), Goyal stated during a session at the Union Internationale des Avocats (UIA). The company is seeking around 250 acres of land near a port.
Germany ranks as the ninth-largest investor in India, with the country receiving around USD 15 billion in FDI between April 2000 and December 2024. Goyal emphasized that more and more international companies are looking to invest in India, attracted by the growing business opportunities.
The government has undertaken several measures to improve the country’s business environment, including reducing compliance burdens and decriminalizing minor offences. These steps, according to Goyal, are fostering greater investor confidence, and the government is committed to supporting businesses facing challenges such as outdated laws or unfair competition from predatory pricing.
On the subject of arbitration, Goyal highlighted its potential to reduce judicial delays if both parties respect the arbitration results. However, he acknowledged concerns about the quality of arbitration, including whether the government effectively presents its case and whether arbitration is genuinely fair or influenced by powerful corporations.
He stressed the importance of strengthening arbitration mechanisms to inspire confidence among all stakeholders. Goyal also called for making arbitration and mediation more widespread in India’s legal system, noting that as the country’s manufacturing sector grows, disputes and disagreements will inevitably arise. He believes that streamlining these processes will support India’s ambitions to become a global manufacturing hub.





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