(de-news.net) – Following consultations with Indian Prime Minister Narendra Modi in Ahmedabad, German Chancellor Friedrich Merz has signaled that the long-negotiated free trade agreement between the European Union and India could be finalized as early as this month, despite the fact that formal negotiations have not yet been officially concluded. Merz suggested that if the outstanding issues are resolved ahead of the EU–India summit scheduled for January 27 in New Delhi, European Council President António Costa and European Commission President Ursula von der Leyen would be in a position to sign the agreement at that meeting. He framed the prospective accord as a central instrument for unlocking the full economic potential of cooperation between the European Union and India, an assessment echoed by government officials, who characterized the prospects for a January signing as favorable following a series of intensive bilateral discussions. The possibility of an accelerated timeline, which had previously been expected only toward the end of the year, has also been linked to mounting tariff pressure from the United States on Indian exports.
Beyond trade policy, Merz’s visit underscored Germany’s broader intention to deepen its strategic partnership with India against the backdrop of a global order increasingly shaped by competition among major powers. In this context, Berlin and New Delhi agreed to expand cooperation across a range of strategically significant areas, including supply chain resilience, artificial intelligence, critical minerals, and both defense-related and civilian economic policy. India was characterized as a preferred partner for Germany within this framework, reflecting a deliberate effort to diversify and strengthen international partnerships beyond Europe and the traditional transatlantic sphere.
On the margins of the talks, the two sides endorsed a total of 27 memoranda of understanding and policy initiatives, covering fields from cooperation on rare earth resources to the recruitment of skilled professionals in the health care sector. As Merz’s first major visit to Asia since taking office as chancellor—and notably one undertaken in India rather than China—the trip was widely interpreted as a signal of Germany’s evolving foreign, economic, and strategic policy priorities.
