German Chancellor Friedrich Merz suggested that the European Union and India may finalize a free trade agreement by the end of January. He made the remarks after meeting Indian Prime Minister Narendra Modi in Ahmedabad. The EU Commission and Council presidents would travel to India to sign the deal if finalized.
Merz said the agreement would be a major step forward, emphasizing that negotiations have reached advanced stages. Indian Trade Minister Piyush Goyal noted the deal is almost complete after “very intensive” talks. Both sides are aiming to strengthen trade ties and economic cooperation.
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Merz criticized the global “renaissance of unfortunate protectionism,” highlighting its negative impact on Germany and India. He referenced U.S. tariffs on Indian oil imports and Chinese export controls affecting German industries, especially automotive and semiconductors.
The EU-India deal would follow the EU’s recent agreement with South America’s Mercosur group, helping the bloc expand trade networks and reduce dependence on China. Germany also seeks closer security cooperation with India to reduce its reliance on Russia.
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In addition to trade, India and Germany signed memoranda of understanding on critical minerals, health, and an AI innovation centre. Prime Minister Modi said the agreements will give “new momentum and strength” to bilateral cooperation, despite ongoing differences over India’s energy ties with Russia.