Germany’s foreign trade association, the BGA, is aggressively championing a prospective free trade agreement with India, framing it as a critical strategic and economic imperative for Europe. Dirk Jandura, President of the BGA, declared in an interview with Handelsblatt that a robust EU-India accord would establish a “geopolitical anchor and an economic tailwind” for the continent, a sentiment gaining traction amidst ongoing shifts in global power dynamics.
Jandura emphasized that India has transitioned from a distant future market to a “cornerstone of Germany and Europe’s economic present”. The nation’s burgeoning economy and strategic importance are no longer debatable, demanding a proactive and intensified engagement from European businesses. Currently, over 2,000 German companies operate within India, a figure predicted to grow exponentially with increased investment and favorable trade conditions. Key sectors ripe for collaboration include digitalization, artificial intelligence, resource processing and recycling, areas where India’s rapid development presents significant opportunities.
The upcoming visit by German Chancellor Friedrich Merz, accompanied by a substantial economic delegation, is being viewed as a pivotal moment. Jandura lauded the timing of the trip, suggesting it could serve as a catalyst for the planned EU-India summit slated for January 2026. The primary objectives of the visit, according to the BGA, extend beyond simple expansion of trade; they involve a strategic diversification of supply chains, the opening of new market access points and a deepening of technological partnerships.
However, critics are urging caution regarding the speed and scope of the proposed free trade agreement. Concerns exist around India’s intellectual property protections and its regulatory environment, which can pose challenges for European businesses. Furthermore, the pursuit of a deal should not overshadow the need to address human rights concerns and ensure sustainable development within India, some analysts argue, highlighting a potential tension between economic opportunity and broader ethical considerations. The Merz visit, therefore, represents not only a chance for economic advancement but also a crucial test of Europe’s ability to navigate a complex and evolving bilateral relationship.
