economy
January 12, 2026
India-EU free-trade pact likely this month
An agreement is necessary to unlock the full potential of economic ties between Germany and India, Friedrich Merz has said.
TL;DR
- Germany hopes for an EU-India trade deal by the end of January.
- European Commission and Council Presidents will visit India.
- The EU-India trade deal is seen as crucial for unlocking $50 billion in bilateral trade potential.
- Germany views the recent EU-Mercosur deal as an encouraging precedent for the ongoing 18-year EU-India trade talks.
- Germany and India signed agreements to boost cooperation in defense, skills, health, and education.
- Both nations aim to reduce their dependence on China.
- India is diversifying trade partners after the US imposed a 50% tariff, partly due to India's Russian oil purchases.
- US-India trade negotiations are set to resume.
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