India wants its free trade agreement talks with the EU to reach “a decisive conclusion” as soon as possible, said external affairs minister S Jaishankar on Wednesday. Following extensive discussions with his German counterpart, Johann Wadephul, Jaishankar delivered the declaration during a joint media briefing.
The statement is made at a time when India is dealing with international unpredictability as a result of increased economic tensions brought on by the US imposing a 50% tax on Indian imports. It was then raised by another 25% because of its purchase of Russian crude oil. According to the Minister of External Affairs, the discussion centred on strengthening bilateral ties in the fields of technology, defence, climate change, and the economy.
Jaishankar remarked, “We respect Germany’s intention to double trade with India”. He also praised Germany for tackling the problem of export restrictions. Additionally, Jaishankar praised Germany’s desire to collaborate with India in the semiconductor industry. Wadephul assured him that Germany would fully support the India-EU free trade agreement, according to the EAM.
Why are Germany and India attempting to strengthen their relationship?
The India-Germany partnership has enormous potential for quick expansion, Jaishankar emphasised during his conversation with Wadephul, particularly in view of growing trade tensions with Washington and Brussels. “There are a lot of opportunities for this partnership to grow rather quickly… Our Discussion today was mostly focused on the bilateral aspect,” he stated.
“The minister graciously promised me that Germany will foolishly support the free trade agreements with the European Union as well. In summary, the answer is yes. The world is undergoing a significant transformation. These modifications present a solid argument for a closer, more robust, and expanded India-Germany partnership.
Wadephul, who is now in India for two days, had already visited Bengaluru to meet with Indian leaders in technology and innovation before coming to the capital for official negotiations.
Trade is growing, but it is still far less than China’s
Over the last 10 years, bilateral trade has increased dramatically, reaching a record high of almost $33 billion in 2024. India is a significant market for German products such as machinery, automobiles, and chemicals. Last year, Germany was India’s top trading partner in the EU.
However, China’s present trade with Germany is larger than India’s. Last year German German-Chinese trade totalled over €246 billion. German businesses in Asia are still mostly focused on China. Even if the Indian market is growing in importance to them, many also lament the South Asian countries’ complicated tax structure, corruption, and bureaucratic obstacles.
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