Piyush Goyal meets German minister to boost trade, push India-EU FTA

India’s Commerce and Industry Minister Piyush Goyal met German Federal Minister Katherina Reiche in Berlin to boost collaboration in trade, investment, green energy, and technology. Discussions also focused on advancing the India-EU Free Trade Agreement (FTA), following India and the EU’s renewed commitment in February 2025 to finalize the deal by year-end.

Following a video conference held on August 7, India’s Commerce and Industry Minister Piyush Goyal met the German Federal Minister of Economy and Energy, Katherina Reiche, in Berlin on Thursday, October 23. The discussions centered on strengthening cooperation across key areas such as trade, investment, technology, green energy, and skilling.

Goyal also held talks with Dr. Levin Holle, Economic and Financial Policy Advisor at the Federal Chancellery and Germany’s G7 and G20 Sherpa, where the two sides explored ways to deepen the bilateral economic relationship and advance discussions on a potential India-EU Free Trade Agreement (FTA). Germany remains not only the largest economy in Europe but also the biggest among the 27-member European Union.

In February 2025, India and the European Union had agreed to conclude a free trade deal by the end of the year — their first formal commitment to a timeline after years of negotiations. The announcement was made jointly by European Commission President Ursula von der Leyen and Prime Minister Narendra Modi during her two-day visit to India. Talks for the India-EU FTA, which resumed in 2021 after an eight-year hiatus, involve significant concessions from India, one of the world’s most protected markets.

Later in the day, the Goyal chaired a roundtable with CEOs and leaders of German Mittelstand companies at the Indian Embassy in Berlin. His visit also includes meetings with Xavier Bettel, Deputy Prime Minister and Minister of Foreign Affairs and Trade of Luxembourg, along with one-on-one discussions with top executives from leading German companies such as Infineon Technologies, Schaeffler Group, Renk, Herrenknecht AG, Enertrag SE, and Mercedes-Benz Group. Goyal’s engagements will continue tomorrow with his participation in a panel discussion at the Berlin Global Dialogue, followed by meetings with representatives of German industry associations.

Goyal referred to the meeting on X as a “productive engagement focused on the positive resolution of the outstanding issues with respect to the India-EU FTA” and highlighted the “shared commitment on both sides towards redefining the relationship”.

According to data from Destatis (Federal Statistical Office), Indo-German bilateral trade reached an all-time high of US$ 33.40 billion in calendar year 2024, marking a 0.36% year-on-year increase. In 2024, India ranked as Germany’s 23rd largest trading partner, while Germany was India’s 8th largest trading partner in FY 2024–25.

According to ITC Trademap data, India’s exports to Germany reached US$ 10.41 billion in 2024, reflecting a CAGR of 4%, whereas imports from Germany grew at a faster pace of 7%, reaching US$ 17.18 billion in the same year. Key commodities exported from India to Germany include electrical machinery and equipment, nuclear reactors, boilers, organic chemicals, vehicles, apparel, steel, and pharmaceutical products.

On the other hand, India’s imports from Germany are dominated by nuclear reactors, boilers, electrical machinery and equipment, aircraft, optical, photographic, cinematographic, and surgical instruments, vehicles, plastics, and organic chemicals.

Data from Bundesbank show that Indo-German trade in services surged by 15% year-on-year in 2024, reaching a record US$ 17.03 billion. India’s services exports to Germany totaled US$ 10.31 billion, while imports from Germany amounted to US$ 6.72 billion.

Germany stands as the 9th largest foreign direct investor in India, with a cumulative FDI of US$ 15.11 billion from April 2000 to March 2025. German investments in India were valued at US$ 469 million in FY 2024–25, compared to US$ 505 million in FY 2023–24 and US$ 547 million in FY 2022–23.

According to the Indo-German Chamber of Commerce, over 2,000 German companies are currently active in India. Their investments are concentrated across sectors such as transportation, electrical equipment, metallurgical industries, services, chemicals, construction, trading, and automobiles.

Recent German investments in India include a €571 million investment by Deutsche Bank in November 2024 to strengthen its operations and capital base in India, with a focus on digital and infrastructure sectors. Schneider Electric announced a €338 million investment in February 2025 to establish three new manufacturing plants in India, while Carl Zeiss AG invested €334 million to open a Global Capability Center in Bengaluru specializing in cloud and cybersecurity.

DHL plans to invest €250 million by 2030 to expand its fleet, set up new hubs, and pursue acquisitions in India. Siemens committed €100 million in May 2024 to expand its 32-factory network, focusing on infrastructure and mobility. SAP also invested €100 million to expand its largest R&D hub outside Germany in India, with plans to double the campus and workforce by 2027. Additionally, RENK Group is investing €10 million to establish a defence production facility in Tamil Nadu’s industrial corridor, while Schaeffler Technologies AG invested around €200 million between 2022 and 2024 to enhance manufacturing capacity and develop e-mobility solutions.

As reported by the Confederation of Indian Industry (CII), more than 200 Indian companies operate in Germany across diverse sectors, including trading, manufacturing, research and development, innovation, and services.

Indian firms have primarily entered the German market through mergers and acquisitions (M&A), particularly in the IT, automotive, pharmaceutical, biotech, and manufacturing sectors. The presence of Indian software companies in Germany continues to expand steadily.

Major clusters of Indian businesses are located in the German states of North Rhine-Westphalia, Hesse, Bavaria, and Baden-Württemberg.

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FAQs

1. What was the purpose of Piyush Goyal’s visit to Berlin?
Piyush Goyal visited Berlin to strengthen India-Germany economic ties, focusing on trade, investment, green energy, technology, and skilling. A key agenda was pushing forward the India-EU Free Trade Agreement (FTA) to finalize it by the end of 2025.

2. What is the current status of the India-EU FTA?
Negotiations, resumed in 2021 after an eight-year break, aim to conclude the deal by December 2025. Discussions cover market access, rules of origin, and environmental standards.

3. How will the FTA affect Indian consumers?
The FTA is expected to reduce tariffs on many goods, making European products more affordable in India. Consumers may benefit from lower prices, wider product choices, and improved quality standards.

4. Which sectors are likely to benefit from the India-EU FTA?
Key sectors include agriculture, manufacturing, services like IT and healthcare, and sustainability-focused trade initiatives, promoting environmentally friendly business practices.

5. What is India’s approach toward trade agreements with the EU and US?
India seeks fair and balanced deals that protect its interests. It will not rush into agreements or accept conditions that restrict trade flexibility.