Being an Indian living in South-West of Germany for about four years now here is what I feel about racism in Germany. I would begin by saying, there is no one correct answer to the question. I would like to give my two cents from my experience. So please take it with a grain of salt.
If you were to ask me three years ago, I would say, “yes, there is very evident racism against foreigners in Germany”.
However, after trying to understand and integrate into the German culture. I barely notice anyone treating me differently for being a foreigner.
What changed from then to now?
Speaking German
Dressing sense
I know many people would disagree on this point.
Behaving yourself
A couple of months back, I was in a car with a German friend. He drove over the footpath to overtake a vehicle. I asked him, “Are you allowed to do that?”. He said, “No”. I gave him an angry stare. Similar to the one I used to get in my initial phase of living in Germany.
Furthermore, the extent which depends and can only be talked about in a long answer.
Some factors that determine the extent of racism you face are,
Also, there are a few places where you are likely to face more racism than other places, discos and clubs are a hot spot for racism. If you can stay away from those places, well and good, else you are sure to face racism.
Meanwhile, students face much less racism than others.
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