India-EU Free Trade Agreement to Strengthen India-Germany Trade, Says Envoy

Germany's Consul General says proposed FTA could create new opportunities for investment, manufacturing, and regional expansion in India

The proposed India-European Union Free Trade Agreement (FTA) is expected to strengthen trade ties between India and Germany and open new opportunities for German companies operating in India, Germany’s Consul General in Mumbai, Christoph Hallier, said.

Speaking in an interview in Indore on Thursday, Hallier said that besides established industrial centres such as Pune and Bengaluru, there are considerable opportunities for German companies to expand into other parts of India.

"I am fully confident that once the India-EU free trade agreement comes into force, it will further boost our bilateral trade relations," Hallier said.

Germany is one of the founding members of the European Union.

Responding to a question on which sectors are expected to benefit the most from the proposed India-EU agreement, Hallier said, "I believe this agreement covers almost all sectors. From a German perspective, the manufacturing sector has always been important. In my view, there is also considerable potential in the information technology (IT) sector."

Hallier noted that nearly 2,000 German companies currently operate in India, with the largest concentration in Pune, where the automobile industry has a strong presence along with several original equipment manufacturers and their suppliers.

He added, "German companies have traditionally focused on the Bengaluru region for IT-related activities, but they are now showing interest in expanding their operations to other parts of India as well."

The proposed India-EU Free Trade Agreement was jointly announced by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen following the conclusion of negotiations at the 16th India-EU Summit on January 27.