As India and the EU near the conclusion of their FTA talks, German officials express optimism about trade relations with India.
The German embassy representatives were speaking at the Indo-German Chamber of Commerce Industry Dialogue in New Delhi, held a day before US's 50 per cent tariff on Indian goods comes into force.
The EU-India FTA The agreement is expected to enhance economic ties and promote green energy initiatives, leveraging India's solar potential and the EU's technological expertise.
Amid the final stages of free trade agreement (FTA) negotiations between India and the European Union (EU), and the US slapping a 50 per cent tariff on Indian goods, German officials signal positive FTA outcomes that will help India and the EU in economic development, at a conclave in Delhi on August 26, 2025.
The EU will always be in favour of reducing tariffs to a minimum level, Georg Enzweiler, chargé d'affaires (ambassador's deputy) at the German Embassy in New Delhi, said at the Indo-German Chamber of Commerce (IGCC) Industry Dialogue, in the context of the United States (US) imposing hefty tariffs on Indian goods.
The US has notified a 50 per cent tariff (25 per cent tax and 25 per cent penalty) on most goods imported from India, effective August 27, 2025.
"....tariffs are obstacles to free trade wherever they are, whether it's on the Indian side, the European side or the US side. So, we would always be in favour of reducing tariffs to a minimum level," Enzweiler said on the sidelines of the IGCC conference.
Many economies around the globe are in a transition phase, making the present moment the opportune and necessary window for them to adopt green energy. "We realise that relying too much on fossil fuels has negative effects," he told Down To Earth when asked about what to expect in green energy of the India-EU FTA.
Green energy capacity in India can help Germany diversify its new energy profile, he highlighted. “India is super well placed for boosting green hydrogen and we need different new energy sources. So, this is a win-win situation for both India and Germany.”
Additionally, India is blessed with a lot of sunlight, he underlined. “There are excellent ways of using solar energy not only within the country but also for export purposes. Using solar energy to produce ammonia, for example, or transporting it to Germany as a new source of energy,” he added.
The proposed India-EU FTA is expected to significantly bolster the hydrogen and solar sectors through strategic investments, reduced trade barriers and enhanced technology sharing.
The FTA is part of a broader green transition push by both parties, driven by India’s vast renewable potential and the EU’s technological expertise and green deal policies.
“Germany is not in the driver's seat about the EU-India FTA. It is the European Union and the European Commission that are negotiating from the European side,” Enzweiler said. “But the signals we are getting are very positive. We hope that towards the year’s end, we will see these negotiations come to a fruitful result.”