Germany Is Open To Welcome Indian Talent: Ralf Wintergerst, CEO Of G+D

In an exclusive interview with BW Businessworld, Ralf Wintergerst, Group CEO of Giesecke+Devrient, highlights India's rapid growth in digital transactions, particularly through the UPI. Initially, G+D worked with the Reserve Bank of India to improve currency quality, but with UPI’s introduction, the focus shifted to enhancing digital infrastructure.

Wintergerst also discusses India-Germany collaboration, driven by Germany's interest in India’s tech sector and its skilled talent pool. Germany's demand for labour aligns with India’s large workforce, leading to initiatives like increased visa quotas and exchange programs for students and professionals. Here is the full interview:

The Indian market has evolved significantly, especially in digital transactions. The COVID-19 pandemic further accelerated the Unified Payments Interface’s popularity, with the need for cashless, touchless transactions driving widespread adoption. How has your company approached these transitions?

My first project in India was actually with the Reserve Bank of India (RBI) to improve the quality of these notes, which we saw as the “business card” of the country. We worked with the Board of Governors to bring best practices to India, ensuring that notes were no longer stitched together, and within 2-3 years, the quality improved dramatically.

After this shift, electronic payment systems slowly began to emerge as banks opened, providing more access to cash. But even ten years ago, when this government took office, many people in India still lacked bank accounts, creating a barrier to digital transactions.

The government then made a pivotal move. Recognising that many Indians owned mobile phones but not bank accounts, they launched UPI as a state-sponsored digital infrastructure—a unique model compared to most other countries. UPI allowed people to make instant payments through their phones, driving a significant change in the financial landscape. This approach was only mirrored by Brazil, which developed its own version called PIX.

Looking to the future, as India’s economy and technology continue to grow, there’s potential for UPI to evolve beyond just person-to-person payments. With the rise of IoT (Internet of Things), UPI could eventually facilitate transactions between devices. Although about one-third of transactions currently happen via UPI, and 60 per cent still rely on debit cards, I expect UPI adoption will continue to grow rapidly in the coming years.

In recent years, there have been growing security concerns surrounding Aadhaar, India's unique identification number. Its extensive use has raised privacy and security concerns, particularly as it links personal data like bank accounts and phone numbers. Given these risks, how do you see the future of Aadhaar’s integration into financial systems in terms of privacy and security?

Yes, this is a serious concern. If Aadhaar information is misused, or if UPI transactions are compromised, money can disappear instantly with no way to recover it—creating significant risks. We have already seen a rise in fraud related to UPI, and this brings us into an ongoing “cat and mouse” race between security measures and the people looking to exploit vulnerabilities.

In the past, counterfeiters found ways to create fake banknotes, prompting new security features to combat this. In the digital sphere, it’s a similar situation: every time we build a system, there are people who try to find ways to misuse it. So, we constantly have to enhance security measures to make these systems more resilient.

The real risk is that, if fraud occurs on a large scale, it can impact many people’s finances and personal security. This makes it essential to keep investing in robust security features to protect users as Aadhaar and digital payments continue to expand in India.

With the rapid expansion of the Indian digital payment system, what contributions is your company making to enhance security in this space?

In Germany, we provide high-security components for protecting sensitive government data, using advanced cryptographic technology to secure data and systems. We are exploring ways to bring similar security solutions to India, although simply transferring technology from Germany may not be effective given India's unique requirements and operating environment. Our approach is to first understand the Indian system thoroughly, and then identify tailored solutions that enhance security for both digital payments and identity verification.

We are also actively involved in digital payments globally and bring a range of secure solutions to India as well. One key technology is the eSIM, which is embedded in devices like phones, watches and tablets to facilitate secure communication between them. The eSIM plays an important role in ensuring that device interactions—whether in smartphones, IoT devices, or even vehicles—are secure. This type of technology could be a game-changer for India’s payment ecosystem, helping to protect transactions and user identities.

Although the eSIM technology is more familiar on devices like iPhones and Samsung phones, it has broader applications and can be integrated into various IoT systems. By working with partners in India, we aim to tailor this secure connectivity technology to the unique needs of the Indian market, enhancing security in both payments and identity verification.

Beyond digital payments, how is your company expanding across the Asia-Pacific region, specifically in countries like Korea, Japan and India? What role does your company play in these South and Southeast Asian countries?

Our company has a strong presence across the Asia-Pacific, including operations in Japan, Korea, Indonesia, Australia, Singapore, China and a branch office in Bangladesh. This region is strategically important to us, with India, China, and Indonesia being our primary focus due to their scale and growth potential.

Looking ahead, we see India as a major hub for our operations. We are committed to increasing our investment here, especially in areas like digital and cybersecurity, which align with our core strengths and the region’s growing needs.

We are encouraged by the evolving business environment in India and are exploring significant expansion in our existing lines of business, identifying new opportunities for digital security solutions.

India is poised to play an even larger role in our Asia-Pacific strategy and we foresee a considerable portion of our future workforce coming from India. We recognise that with the right stability in India’s regulatory environment, businesses like ours can thrive, making this market even more attractive for investment and growth.

You met with Prime Minister Narendra Modi, so what kind of collaboration are India and Germany aiming for? Recently, there was some discussion around a Free Trade Agreement (FTA) and negotiations are ongoing. What areas of technology collaboration are India and Germany focusing on?

India and Germany’s collaboration is indeed multi-faceted, reflecting both nations’ strengths and interests. Germany is particularly interested in India’s natural strength in software development, AI and its rapidly growing tech sector. At the same time, Germany faces a shortage of skilled labour, making collaboration with India’s talent pool both relevant and beneficial.

Germany already has strong ties with India through the Indian competence centres of major firms and by attracting Indian talent to work in Germany. This connection grows stronger as many young, skilled professionals graduate from Indian universities every year. Given India’s large and growing workforce, which adds nearly 8 million new entrants annually, there is an opportunity for collaboration that benefits both nations. Germany, in particular, is open to welcoming this workforce, with a positive view of Indian talent and culture.

German firms see India as a promising destination for both development and production. Many German companies, including ours, have a significant presence here, with development teams in cities like Pune, supporting global IT operations. This relationship would benefit from smooth, structured agreements between the two governments, facilitating easier movement of Indian professionals to Germany and streamlining data exchange between businesses.

This collaboration is backed by policies too—Germany has expanded its visa quota to 90,000 annually for Indian talent, and there are currently around 50,000 Indian students in German universities. These students are potential future contributors to German industries, and this exchange is mutually enriching. With an increasing number of Indians learning German, it’s evident that interest in closer collaboration continues to grow.

How is Germany looking forward to investment from India?

Currently, around 1,700 German firms operate in India, but there are only about 650 Indian firms registered in Germany. This gap shows potential for growth in Indian investments in Germany. India has many innovative and professional companies, and Germany sees a lot of potential in collaborating with them. Germany can be an attractive destination for Indian firms, offering opportunities for partnerships and expansion.

In fact, facilitating these collaborations was a key focus of the recent CEO forum, which aims to connect German and Indian companies to explore cooperative ventures and open up new business avenues for Indian firms in Germany.

What types of reforms would you like to see in India that would foster growth for your company, increases inbound investment as well as support the Indian economy?

I have two main suggestions. First, I would love to see a Free Trade Agreement (FTA) between Europe and India. Such an agreement, not only for Germany but for all European countries, would help streamline the administrative processes that companies face, making it simpler to do business across borders.

Second, easing the bureaucratic processes in India would be a significant improvement. While German bureaucracy is complex, Indian bureaucracy is equally challenging. Faster approval processes, especially for investments, would enhance the ease of doing business in India. Simplifying these steps would undoubtedly make India an even more attractive market for investors.

How is Germany handling its energy requirements after the war’s impact on gas supplies? Additionally, how is the Russia-Ukraine war impacting German business, especially with regard to India's stance on the conflict?

The conflict certainly brings challenges, especially given Germany’s historical reliance on Russian gas. However, the gas dependency issue is now largely resolved; Germany has shifted away from Russian gas entirely, although the circumstances were challenging. New energy sources have been secured, allowing Germany to manage its energy needs effectively.

As for India’s stance, it's complex. India is maintaining a neutral position, neither aligning entirely with the West nor with Russia. India’s independence in global affairs could be beneficial, providing balance in international dynamics. This position doesn’t seem to majorly impact India’s partnership potential with Europe, as Europe recognises the importance of a strong, independent India on the global stage.

Do you think the Russia-Ukraine war will end soon?

That’s a difficult prediction but it is not going to end in the near future. As a business leader, I am not an expert on conflicts. It will eventually end, but it’s unclear when that might be.