Putting the Indo-German AI Pact into practice: The “AI for Mittelstand” Working Group is growing

In February, ministers Shri Ashwini Vaishnaw and Dr Karsten Wildberger signed the new Indo-German AI Pact. Building on this, the German Association for Small- and Medium-Sized enterprises (BVMW) and Nasscom, India’s technology industry association, launched the AI for Mittelstand Working Group on 15 April 2026 in Berlin. The launch was accompanied by the signing of a Memorandum of Understanding (MoU) between the two associations. Its aim: to create value for businesses on both sides through co-innovation. This was a first step in translating the political will behind the AI Pact into practical collaboration.

Since, the working group has been pursuing tangible outcomes for industries in Germany and India. It has developed an action plan and is preparing publications, webinars and a roadshow, during which a Nasscom delegation will meet industry representatives throughout Germany in September. The goal of the roadshow is to bring diverse actors on board and to facilitate exchange and collaboration between businesses in Germany and India.

Collaboration on an equal footing

Why is Indo-German collaboration important? This was a central question during last week’s two webinars. One answer is that either economy lacks something that the other could help fix: Germany has a large, highly developed SME ecosystem but faces a shortage of skilled IT labour. India has a highly skilled IT workforce and extensive AI know-how but seeks more application opportunities. By collaborating, both countries can complement each other and enhance productivity and innovation.

German businesses are already expected to increase their involvement with Indian IT talent in the coming years. This will be facilitated by the upcoming Free Trade Agreement between the EU and India, which was announced in January and is expected to be signed by the end of 2026.

Webinars broaden the Indo-German AI network  

Hosted by Bitkom, the first webinar raised awareness for the AI for Mittelstand Working Group among representatives of German companies and industry associations. It offered representatives from the Mittelstand ecosystem a platform to raise concerns, provide feedback and introduce ideas. This resulted in a lively discussion, at the end of which many participants expressed interest in joining the working group. Such events allow the partnership network of AI for Mittelstand to grow, introducing perspectives from different regions of Germany and therefore representing the economy more substantially.  

In the second webinar that targeted business associations as multipliers, participants emphasised that the working group should represent the entire SME landscape in Germany – from smaller regional firms to larger, internationally active companies. Speakers from both BVMW and Nasscom outlined next steps, particularly the identification of successful use cases where AI solutions from Indian providers create value for German SMEs.

Next steps

Several German associations have issued an invitation for the Nasscom delegation to visit their organisation. Next, targeted matchmaking between Mittelstand companies and AI providers in India will foster B2B partnerships. The upcoming roadshow will further advance Indo-German cooperation.

If you would like to participate in the AI for Mittelstand Working Group, reach out to us via digital-dialogues@giz.de!