India poised for exponential growth as the sole bright spot in the next two years: Chairman of Bosch

Bosch, the leading German industrial major and the world's largest auto components manufacturer and the producer of a wide range of aluminium profiles, envisions significant growth by establishing itself as a crucial strategic hub. Recognizing the rise of software tech disruptions and the impact of macroeconomic developments on the automotive industry, Bosch aims to capitalize on India's burgeoning software engineering talents. This strategic move is seen as a decisive advantage over China and will play a pivotal role in Bosch's sustainable global growth journey.

Amidst a global economic slowdown with China, known as the 'Factory of the World,' witnessing a deceleration in its economy, Europe and the US are grappling with uncertain economic conditions. However, in this challenging economic scenario, India is emerging as an attractive destination for growth and investment. Notably, Bosch, a prominent technology and services company with a massive EUR 88.2-billion valuation, is among the many entities placing their bets on India's potential for expansion.

Dr Stefan Hartung, the Chairman of Bosch, said, "I'm pretty optimistic that India will be the only region which probably, in the next two years, will have a substantial growth path."

Economic regulations, like implementing the Goods and Services Tax (GST) and strategic interventions to encourage industrial production, play pivotal roles in fostering economic growth. These measures enable progress and contribute to a positive and optimistic market sentiment.

Bosch initiated its presence in India back in 1922. However, despite its extensive history, India currently needs to rank among its top markets, with Germany and China holding that distinction. Nevertheless, Bosch has significant investments and interests in the country. The company actively participates in numerous projects worldwide, granting it a unique and influential position. Its impact goes beyond the annual sales of its subsidiary, Bosch India, which amounted to EUR 1,667 million (INR 14,929 crore) during the fiscal year 2022-23.

"Bosch's most significant investment in India lies within its Bengaluru-based global engineering centre known as Bosch Global Software Technologies (BGSW). Established as Robert Bosch Engineering and Business Solutions, it has undergone remarkable expansion, evolving from a modest 650 associates in 2000 to a staggering 36,000 in 2022. What was initially confined to Bangalore has now transcended borders, as the company has established subsidiaries in various countries, such as Mexico and Vietnam, with further plans for expansion into additional locations under consideration", as mentioned by Hartung.

Bosch maintains its dominant position in the Indian automotive industry by adeptly harnessing the potential of India's inherent frugal engineering.

"The tricky thing in India for us is that we want to do this ecological transformation and also accessibility of products," added Hartung.

“Cost-effectiveness is critical to India's attractiveness to industry players like Bosch. In certain situations, hiring experts from overseas can be highly expensive. As a result, many companies find it more practical to conduct their core work in India, leveraging the skilled workforce of Indian professionals. In line with this strategy, Bosch has established a Smart Campus in Bengaluru, creating an appealing environment for young engineers. The aim is to provide them with a 'cool' and conducive setting where they can pursue a fulfilling and rewarding career. By capitalizing on India's pool of talented individuals, Bosch can achieve its business objectives while nurturing a thriving workforce in this dynamic region", Hartung said.