Germany’s foreign trade association, the BGA, is championing a burgeoning economic partnership with India, positioning a prospective free trade agreement with the European Union as a strategically vital asset for Europe’s future. Dirk Jandura, President of the BGA, recently emphasized in an interview with “Handelsblatt” that a robust EU-India accord would serve as both a “geopolitical anchor” and a “significant economic boost” for the continent.
Jandura’s assessment underscores a significant shift in perspective regarding India’s role within the European economic landscape. What was once considered a distant market of future potential is now being portrayed as a “pillar of our economic present”. This realignment reflects India’s escalating importance as a global economic force, actively shaping supply chains and offering burgeoning investment opportunities.
Chancellor Friedrich Merz’s upcoming visit to India, accompanied by a substantial economic delegation, highlights the intensifying efforts to cultivate these ties. Already, over 2,000 German companies are operating within India, indicating an existing and sizable commitment. These investments are particularly concentrated in sectors poised for exponential growth, including digitalization, artificial intelligence, resource processing and recycling – areas where technological cooperation is seen as mutually beneficial.
While the official agenda outlines ambitions to diversify supply chains, unlock new market access and deepen technological collaboration, the timing of Merz’s visit is particularly significant. The BGA’s Jandura suggests it could be instrumental in setting the stage for a critical EU-India summit scheduled for January 2026. However, closer scrutiny reveals potential complexities. Critics question whether a rapid acceleration of the trade agreement, particularly concerning agricultural tariffs and intellectual property rights, could unduly pressure Indian domestic industries and exacerbate existing inequalities. The visit, therefore, presents an opportunity not only to strengthen bilateral ties but also to navigate the intricate geopolitical and economic considerations inherent in a partnership of this magnitude.