Talks on India-EU Free Trade Agreement Gain Momentum During Goyal’s Germany Visit

India’s efforts to finalise a Free Trade Agreement (FTA) with the European Union received renewed momentum as Commerce and Industry Minister Piyush Goyal met German officials and business leaders in Berlin. The discussions were part of his broader visit to strengthen economic and strategic ties with Germany and the EU.

Strengthening Bilateral Cooperation

During the meeting with the German Federal Minister of Economy and Energy, Katherina Reiche, both sides explored opportunities to deepen collaboration in areas such as trade, investment, technology, green energy, and workforce development. The talks followed an earlier virtual meeting held in August, underscoring the ongoing engagement between India and Germany on economic matters.

Goyal also met Dr Levin Holle, Economic and Financial Policy Advisor at the Federal Chancellery and Germany’s G7 and G20 Sherpa, to discuss key aspects of the proposed India-EU FTA. 

Boost to India-Germany Trade and Investment

Germany is the largest economy in the EU and a crucial trading partner for India. As per the Federal Statistical Office (Destatis), Indo-German bilateral trade reached a record $33.40 billion in 2024, with Indian exports at $15.09 billion and imports from Germany at $18.31 billion. In terms of trade ranking, India was Germany’s 23rd largest trading partner, while Germany stood as India’s 8th largest.

Service trade has also seen a steady rise. Data from the Bundesbank revealed a 15% year-on-year increase in 2024, reaching $17.03 billion, with India’s services exports to Germany at $10.31 billion. This growth highlights the broadening scope of cooperation beyond goods to technology, research, and innovation.

German Investments Fuel Growth in India

Germany continues to play a vital role in India’s investment landscape. It is the ninth-largest foreign direct investor in the country, with cumulative investments of $15.11 billion between April 2000 and March 2025. In FY 2024–25 alone, German investments amounted to $469 million.

Recent investment announcements reflect growing confidence in India’s economic outlook. Deutsche Bank committed €571 million to expand operations in India, while Schneider Electric, Carl Zeiss AG, and DHL announced significant projects across manufacturing, logistics, and digital infrastructure. Siemens, SAP, RENK Group, and Schaeffler Technologies have also invested in expanding production capacity and research centres.

Read More:India-EU FTA Talks Reach Final Stage With Focus On Rules Of Origin And Key Trade Issues

Conclusion

The India-EU FTA discussions are at an advanced stage, with both sides seeking a balanced agreement that promotes trade diversification and investment flows. Goyal’s meetings with German industrial leaders and participation in the Berlin Global Dialogue further underline India’s proactive approach to enhancing economic partnerships with the EU.

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