New Delhi
External Affairs Minister S. Jaishankar expressed optimism on September 3, 2025, about the early conclusion of the long-pending Free Trade Agreement (FTA) between India and the European Union. His remarks came after a meeting with German Foreign Minister Johann Wadephul in New Delhi, where both sides highlighted the importance of expanding bilateral cooperation and speeding up the trade pact.
Push for early conclusion
Jaishankar said that India is counting on Germany’s strong support to ensure the FTA negotiations reach a decisive conclusion. He emphasised that both India and the EU stand to benefit from reducing trade barriers and providing stability amid global economic uncertainties. According to him, the agreement would not only strengthen trade but also bring resilience to supply chains in times of geopolitical tensions.
Germany, one of the EU’s most influential members, assured full backing for the deal. Wadephul stated that his country would use its influence within the European Commission to accelerate the process. He remarked that if other economies are raising barriers, India and Germany must respond by lowering theirs, reinforcing a joint commitment to free trade principles.
Strengthening bilateral ties
Apart from FTA negotiations, the two leaders discussed multiple areas of cooperation including green hydrogen, climate action, technology, and defence. Both sides underlined that closer economic and strategic collaboration is essential to achieving sustainable growth and tackling global challenges.
India and Germany currently have bilateral trade worth around $33–36 billion annually. Jaishankar said that with the right momentum, this figure could be doubled in the near future. Wadephul also stressed that Indo-German ties have greater value today, given the prevailing global uncertainties.
Importance of the EU-India FTA
The EU is one of India’s largest trading partners, and the FTA has been under negotiation for over a decade. If finalised, it could open significant opportunities for India’s exports in sectors such as information technology, pharmaceuticals, and textiles, while boosting European investments in India’s renewable energy, automotive, and industrial sectors.
Analysts point out that the agreement would help India diversify its export markets at a time when global trade faces disruptions. For the EU, strengthening ties with India is crucial as it seeks reliable partners in Asia amid supply chain challenges.
Conclusion
The meeting between Jaishankar and Wadephul signalled a renewed push towards concluding the EU-India Free Trade Agreement. With Germany pledging strong support, there is cautious optimism that the negotiations may soon reach closure. A successful pact would not only deepen Indo-EU trade relations but also add resilience to global supply chains at a time of heightened economic uncertainty.