Merz Signals Possible EU–India Free Trade Deal by Late January
German Chancellor Friedrich Merz said on Monday that the European Union and India could sign a long-awaited free trade agreement as early as the end of January, following talks with Indian Prime Minister Narendra Modi in Ahmedabad. Merz said the presidents of the European Commission and European Council may travel to India to formalise the deal if negotiations are completed in time. Indian Trade Minister Piyush Goyal also indicated that the agreement is close to its final stage after intensive discussions.
Merz warned of a “renaissance of unfortunate protectionism” globally, stressing the need for stronger trade partnerships between Germany, India and the EU. Although he did not name specific countries, his remarks came amid U.S. pressure on India over its purchases of Russian energy and continued trade frictions involving China that have disrupted supply chains, particularly affecting European carmakers.
Beyond trade, Germany and India signed several memorandums of understanding covering security cooperation, critical minerals, healthcare and an artificial intelligence innovation centre. Merz said Germany aims to deepen security ties with India to reduce its dependence on Russia, while Modi said the new agreements would give fresh momentum to bilateral relations. India, however, continues to rely heavily on Russia for defence equipment and energy, despite European efforts to encourage diversification.
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