Can India and Germany Really Double Their Bilateral Trade?
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Synopsis
As India and Germany strive to double their bilateral trade amidst shifting global dynamics, External Affairs Minister S. Jaishankar signals a commitment to enhancing economic ties and finalizing the India-EU FTA. This ambitious goal promises to reshape the economic landscape, fostering growth and collaboration between two nations.
Key Takeaways
- Bilateral trade between India and Germany aims to double.
- Trade reached $33.4 billion in 2024.
- Focus on finalizing the India-EU FTA.
- Germany is India's 8th largest trading partner.
- Over 200 German companies operate in India.
New Delhi, Sep 3 (NationPress) In light of significant and transformative shifts in the global strategic environment, India and Germany are set to enhance their bilateral trade, as stated by External Affairs Minister (EAM) S. Jaishankar on Wednesday. He emphasized that both nations aim to bring the India-EU free trade agreement (FTA) negotiations to a decisive conclusion in the near future.
The bilateral trade between these two countries has surged notably over the past decade, attaining a historic peak of approximately $33.4 billion (28 billion euros) in 2024.
During a press briefing with visiting German Foreign Minister Johann Wadephul, EAM Jaishankar noted that his German counterpart expressed confidence in the prospect of doubling trade with India.
"I assure him that India is equally enthusiastic about this vision. We anticipate collaborating closely with the German government to achieve this goal. I want to reiterate our commitment to enhancing the ease of doing business in India. I assured the minister that any concerns German companies may have about entering India or establishing operations here will receive our focused attention," EAM Jaishankar emphasized.
He further mentioned that the current global changes influence our policies and the way we engage with other nations.
"The volatility we observe in the global economy strengthens the rationale for India and the European Union (EU), as well as India and Germany, to forge closer ties. This relationship holds immense potential for significant growth," EAM Jaishankar remarked, noting the major global shifts that create a compelling case for a more profound, robust, and extensive India-Germany partnership.
Wadephul acknowledged India as Germany's vital economic trading partner, with over 200 German firms operating in the nation.
He referred to India as a "rising economic powerhouse" of "special importance" globally, reiterating Berlin's unwavering support for concluding the FTA between India and the European Union.
In 2024-25, Germany ranked as India's 8th largest trading partner and was 12th in 2023-24 and 11th in 2022-23. Moreover, Germany stands as the 9th largest foreign direct investor in India, with a cumulative FDI of $15.11 billion from April 2000 to March 2025.
Point of View
The ongoing discussions between India and Germany exhibit a strong commitment to fostering economic growth and collaboration. As trade barriers diminish, both nations stand to reap substantial benefits, affirming India's crucial role in the global economy.
NationPress
03/09/2025
Frequently Asked Questions
What is the current trade volume between India and Germany?
As of 2024, the bilateral trade between India and Germany has reached approximately $33.4 billion.
What is the significance of the India-EU FTA?
The India-EU FTA aims to enhance trade relations, reduce tariffs, and foster economic growth between India and EU member states.
How many German companies operate in India?
Over 200 German companies are currently active in India.
What is Germany's rank as a trading partner for India?
Germany was India's 8th largest trading partner in 2024-25.
What is Germany's foreign direct investment in India?
Germany is the 9th largest foreign direct investor in India with a cumulative FDI of $15.11 billion.
