Germany Export Boost: India-EU FTA Seen Lifting Trade Ties by 2030

New Delhi, October 23

The proposed free trade agreement between India and the European Union has the potential to reshape India's economic engagement with Germany, according to a report released by Union Minister Piyush Goyal. The findings suggest that Indian exports to Germany, covering both goods and services, could exceed $50 billion by 2030.

The report was issued by industry chamber ASSOCHAM in Berlin during Goyal's visit to Germany. It argues that making fuller use of the India-EU FTA and building closer economic cooperation will be essential to meeting this target.

The report expects the agreement to accelerate bilateral trade. With the European Union likely to grant zero-duty entry to a large share of Indian shipments, sectors such as textiles, garments, leather and footwear, gems and jewellery, marine products, engineering items, pharmaceuticals and electronics are anticipated to gain the most.

ASSOCHAM President Nirmal K. Minda said that India and Germany can strengthen their economic partnership by combining manufacturing capability, technical know-how and innovation. He said wider participation by industry, especially MSMEs, will generate new prospects and build lasting economic bonds.

According to the report, Germany's strong industrial base and India's expanding manufacturing and services industries create room for collaboration in advanced manufacturing, semiconductors, digital technology, critical minerals and defence.

ASSOCHAM Secretary General Saurabh Sanyal noted that Germany's Green and Sustainable Development Partnership, together with cooperation in renewable energy, green hydrogen, electric mobility and battery storage, can give new momentum to investment, technology transfer and sustainable industrial growth.

He said that promoting business-to-business interaction, sectoral dialogues and buyer-seller meetings could translate this growing partnership into concrete business results and deepen the involvement of Indian industry.

S.P. Sharma, Chief Economist at ASSOCHAM, said that broad use of the India-EU FTA could lead to a notable increase in Indian exports. He projects that exports to Germany could rise beyond $50 billion to reach $60 billion, or about 54 billion euros, by 2030.

He said that growth in trade, investment and technical collaboration would give long-lasting support to economic relations between the two countries.

ASSOCHAM added that it will continue to foster industry partnerships and knowledge sharing to connect Indian businesses with opportunities in Germany and to strengthen the India-Germany strategic economic partnership.