03/12/2025 - “German business largely supports an EU-India trade agreement, which significantly advances market access and the reduction of trade barriers for Indian markets. The German government and the European Commission should vigorously advocate for this. An excellent agreement with extensive trade facilitation should be the goal for both negotiating partners – even if better negotiations might delay the conclusion by a few weeks." 

The German economy expects the EU agreement to open up the Indian market further than, for instance, India’s agreement with the United Kingdom. Key points include significant tariff reductions, down to zero percent, across all industrial sectors, particularly the automotive, mechanical engineering, and chemical sectors. From the first day of implementation, noticeable tariff reductions should take place, avoiding a transition phase for complete tariff elimination exceeding ten years. Moreover, it is crucial that market access is not undermined through overly bureaucratic origin rules. To ensure companies utilize the agreement, proof of origin requirements must not introduce new documentation obligations. 

Given the importance of German-Indian trade in services and the increasing German investments in India, the nation should sustainably open up these sectors as well. For German companies, it is also vital that India reduces technical trade barriers, such as bureaucratic certification requirements. Regulatory cooperation bodies within the trade agreement should aim to prevent the emergence of new trade barriers beforehand.   

While a bilateral agreement can broadly facilitate and secure foreign trade with India, the World Trade Organization remains the cornerstone for Germany's international trade relations. The German government and the EU should therefore advocate for India to constructively contribute to reforming and advancing the rules-based multilateral trading system. This includes multilateral and plurilateral cooperation in areas such as digital trade, climate, sustainability, industrial policy, economic security, and supply chain resilience.”