German Chancellor Friedrich Merz with Indian Prime Minister Narendra Modi during his focus on over with to Ahmedabad. © Reuters
January 12, 2026 18:36 JST
Updated on January 12, 2026 19:46 JST
AHMEDABAD, India (Reuters) — German Chancellor Friedrich Merz floated the chance that the European Union and India could presumably per chance set a free swap settlement as early as the end of this month, after he met Indian Prime Minister Narendra Modi on Monday.
The presidents of the European Commission and European Council would shuttle to India on the end of January to set the settlement if it is finalized by then, Merz mentioned on his focus on over with to the western Indian metropolis of Ahmedabad.
“In any case, they will take another major step forward to ensure that this free trade agreement comes into being,” Merz mentioned during his first day out to India since changing into chancellor.
Negotiations had beforehand been expected to manufacture by the end of this year. Alternatively, per German authorities sources, there are high expectations that a deal would be signed on the end of January after “very intensive” talks between Merz and Modi.
Indian Trade Minister Piyush Goyal, talking at a separate match in the western tell of Gujarat, mentioned an settlement modified into nearly at its final phases.
Merz mentioned the sphere is experiencing “a renaissance of unfortunate protectionism” that harms Germany and India. He did no longer name any international locations.
The United States has been pressuring India with tariffs to total its purchases of Russian oil and gas, which Washington and the European Union argue is passe to fund the warfare in Ukraine.
Chinese export controls on minerals passe in industries equivalent to autos brought on months of offer chain disruption final year attributable to the U.S.-China swap warfare, affecting German carmakers.
Beijing additionally imposed restrictions on some semiconductors broadly passe in the vehicle swap after the Dutch authorities’s resolution to rob regulate of Chinese-owned chipmaker Nexperia.
For the EU, signing a tackle India would follow the bloc’s inexperienced gentle on Friday for concluding a pact with South The US’s Mercosur group. It would designate one other step in building its own swap networks as the US shakes up international commerce, whereas helping gash reliance on China.
In explicit, Germany wants to work more carefully on security factors with India to gash India’s reliance on Russia, Merz mentioned.
The international locations signed a memorandum of belief to that manufacture, moreover to agreements on severe minerals, the neatly being sector and an man made intelligence innovation heart.
“The MoUs being signed today on all these issues will give new momentum and strength to our cooperation,” Modi mentioned at a joint records convention with Merz.
India unexcited works carefully with Russia on security policy, and powerful of its defense force tools is made in Russia. It’s additionally one amongst well-known patrons of Russian gas and oil alongside China.
Germany is pushing the Indian authorities to blueprint sure it prevents Indian companies from circumventing sanctions on Russia and reduces its energy imports from Russia — requires India has to date rejected.
