FM Nirmala Sitharaman Advances India-EU FTA Talks in Germany

Union Finance Minister Nirmala Sitharaman held a series of high-level meetings with senior German leaders, European policymakers and global industry executives during her official visit to Germany. The discussions focused on strengthening bilateral trade and investment ties in the backdrop of the recently finalised India-EU Free Trade Agreement (FTA). Key areas of cooperation included manufacturing, advanced technology, green energy and agricultural innovation.

During her meeting with Lars Klingbeil, Vice Chancellor and Federal Minister of Finance of Germany, Sitharaman reviewed the outcomes of Prime Minister Narendra Modi’s recent engagement with German Chancellor Friedrich Merz in January. That visit, accompanied by leading German CEOs and industrialists, marked a renewed push in defence, trade and technology collaboration between the two nations.

The India-EU FTA, finalised in January 2026, featured prominently in her discussions. Sitharaman described the agreement as a transformative step that would significantly enhance trade flows and cross-border investments. In a meeting with Christine Lagarde, President of the European Central Bank, she highlighted the ECB’s potential role in facilitating smoother financial transactions under the FTA framework. She also announced that India would permit EU banks to open up to 15 branches over four years under the new agreement.

Also Read: India-EU Summit to Finalise Mega FTA and Defence Pact

Sitharaman further emphasised India’s rapid strides in digital public infrastructure and the success of its digital payments ecosystem. She expressed India’s readiness to share best practices and technological expertise with Germany to deepen cooperation in fintech and digital governance. Development partnerships, including metro rail expansion projects in India, were also reviewed as part of broader economic collaboration.

In Munich, the Finance Minister met Brigitte Haas and Alois Philipp Maria to discuss ongoing investments by Liechtenstein-based companies in India. The talks explored opportunities in sustainable manufacturing, climate action technologies and agricultural equipment. She also held discussions with Oliver Zipse, Chairman of the Board of Management of BMW AG, focusing on India’s policy continuity, economic reforms and the stability of its investment climate — reinforcing India’s position as a trusted global growth partner.

Also Read: India-EU Set to Conclude Landmark Free Trade Agreement After 18 Years