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Economy & Business31 Oct 2026 · about 6 min

German companies looking at Hyderabad as base for innovation, research: Consul General Michael Hasper

The brief

A global capability centre, or GCC, is a unit where a multinational company develops technologies and services for its worldwide operations. It can support research, engineering, digital work and other specialised functions. This makes a city valuable as a source of global capabilities, not just local sales. The article points to Hyderabad’s GCCs as a major reason for its growing appeal to German businesses. These centres allow multinational companies to create products and services in Hyderabad that can be used across international markets. Their work is connected to the parent company’s global needs. Hyderabad’s GCC ecosystem adds to its strengths in information technology, artificial intelligence, pharmaceuticals and advanced engineering. German companies are therefore coming to develop the technologies and products of tomorrow. The expanding GCC presence further strengthens Hyderabad’s position as one of India’s leading technology hubs.

01

What is a global capability centre (GCC), and what does it do for a multinational company?

A global capability centre, or GCC, is a unit where a multinational company develops technologies and services for its worldwide operations. It can support research, engineering, digital work and other specialised functions. This makes a city valuable as a source of global capabilities, not just local sales.

The article points to Hyderabad’s GCCs as a major reason for its growing appeal to German businesses. These centres allow multinational companies to create products and services in Hyderabad that can be used across international markets. Their work is connected to the parent company’s global needs.

Hyderabad’s GCC ecosystem adds to its strengths in information technology, artificial intelligence, pharmaceuticals and advanced engineering. German companies are therefore coming to develop the technologies and products of tomorrow. The expanding GCC presence further strengthens Hyderabad’s position as one of India’s leading technology hubs.

02

Why are German companies choosing Hyderabad for innovation, research and technology development rather than only for sales or manufacturing?

Hyderabad offers German companies a base for innovation, research and technology development. The city has a large pool of skilled engineers, creative minds and ambitious young professionals. Its appetite for innovation matters because companies can use these capabilities to build new products and services for international markets.

The city’s strengths extend across information technology, artificial intelligence, pharmaceuticals and advanced engineering. German businesses are also drawn by Hyderabad’s global capability centres. These centres develop technologies and services for multinational companies’ worldwide operations, creating a direct link between local talent and global business needs.

This is why the relationship is broader than sales or manufacturing. Michael Hasper said German companies were coming to develop the technologies and products of tomorrow. Hyderabad’s growing pharmaceutical ecosystem, engineering talent and GCC network are helping it become a location for high-value development work.

03

What skills and industries make Hyderabad attractive to German companies?

Hyderabad’s appeal rests on both people and industries. The city has skilled engineers, creative minds and ambitious young professionals with an appetite for innovation. These qualities give companies access to talent capable of working on complex technology, research and product-development tasks.

Its industrial strengths include information technology, artificial intelligence, pharmaceuticals and advanced engineering. The growing pharmaceutical ecosystem is especially important, while the engineering base supports technology development. Companies including Bosch, ZF, Bayer and Siemens were named as examples of German industrial interest in the city.

Global capability centres add another advantage. They develop technologies and services for multinational companies’ worldwide operations. Together, Hyderabad’s talent, sector strengths and GCC network help German businesses develop products and services for markets across the world, rather than limiting their activity to local business.

04

How large is the educational connection between India and Germany, and what does the figure of about 70,000 Indian students in German universities indicate?

Around 70,000 Indian students are studying at German universities. Michael Hasper said this makes Indian students Germany’s largest international student community. The figure shows that educational links between India and Germany already operate at significant scale.

This connection can support higher education, research and professional careers. Germany offers Indian students opportunities to study and conduct research, while students gain experience and qualifications in a country where German businesses need skilled workers. Their presence also creates familiarity between the two countries’ institutions and professional communities.

The number matters to Hyderabad and Telangana because it points to a wider talent relationship, not a single business deal. German companies can benefit from India’s skilled workforce, and Telangana has an abundance of talent. The educational link could therefore complement cooperation in technology, research and professional opportunities.

05

What does Germany’s need for engineers, IT specialists, technicians and healthcare workers have to do with Telangana’s talent pool?

Germany’s demand for engineers, IT specialists, technicians and healthcare workers creates a direct opening for Telangana’s talent pool. Michael Hasper said Germany needed these skilled professionals and that Telangana had an abundance of talent that could be connected with such opportunities.

The mechanism is a talent connection between German employers and trained people in Telangana. Education, professional pathways and skills development can help match the abilities available in the State with the occupations German businesses and services require. German-language training was also identified as a priority for young people.

This connection could benefit both sides. Telangana’s professionals could gain access to opportunities linked to Germany, while German businesses could draw on India’s skilled workforce. The article presents this as an area for cooperation, alongside higher education, research and technology, rather than as a guaranteed employment outcome.

06

What could happen to jobs, skills training and technology development in Telangana if the agreements with German states become active programmes?

If agreements with German States become active programmes, cooperation could move from formal commitments to practical work in Telangana. The State identified skills development, technology, life sciences and German-language training for young people as priority areas. These fields connect directly with German workforce needs and Hyderabad’s economic strengths.

For example, training programmes could prepare young people for engineering, IT, technical or healthcare opportunities. Cooperation in life sciences and technology could also support research, product development and industry partnerships. The key mechanism would be organised programmes that translate agreements into work on the ground, rather than leaving them as diplomatic statements.

The likely direction is greater alignment between Telangana’s talent and German companies’ needs. This could support skills, professional opportunities and technology development, but the article does not promise specific job numbers or outcomes. Telangana’s stated priority is to make the agreements actionable.

07

How do international trade agreements, such as the proposed India-EU Free Trade Agreement, make it easier for companies to invest, sell and collaborate across borders?

International trade agreements make cross-border business more predictable. In general, they can establish shared rules for trade, investment and cooperation, helping companies understand how to enter markets, sell products and work with partners. The article specifically links the India-EU Free Trade Agreement with further opportunities for German enterprises in India.

The mechanism is clearer market access and a common framework for business activity. When companies face fewer policy uncertainties or trade barriers, they may find it easier to plan investment, develop partnerships and serve customers across borders. The article does not detail the agreement’s provisions, so its exact effects cannot be determined here.

For German businesses, stronger India-EU ties could add momentum to engagement with India’s growing economy. Combined with Hyderabad’s talent, technology ecosystem and GCCs, such an agreement could support more investment, collaboration and product development. Its opportunities remain linked to the agreement’s progress and implementation.

This brief was written by AI from the original reporting and checked by other models. Names, figures and quotes come from the source; read it for full context.

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