India-EU Free Trade Agreement: Germany Pushes for Swift Progress

New Delhi, Oct 25 (PTI) German Chancellor Olaf Scholz on Friday said his government is pursuing swift progress and rapid conclusion of the negotiations for a proposed free trade agreement between India and the 27-nation European Union (EU).

"And I am sure if we both work on this together, Prime Minister, this could happen in months rather than years," he said while addressing the 18th Asia-Pacific Conference of German Business 2024 in the presence of Prime Minister Narendra Modi here.

Scholz arrived in Delhi late on Thursday as part of his three-day official visit to India. Modi and Scholz will co-chair the seventh Intergovernmental Consultations (IGC) at Hyderabad House.

"We want the free trade agreement between the EU and India. My government is pursuing for swift progress and rapid conclusions," he said.

He also said that recently the German government has agreed on a strategy to attract skilled Indian employees to Germany.

"Today Indians are the largest group of foreign students at our universities. Last year alone, the number of Indians working in Germany grew by 23,000. That talent is a welcome addition to our labour market," Scholz said.

He added that Germany is digitising its visa process, speeding up procedures and making them more user-friendly.

"At the same time, we are reducing irregular migration and facilitating returns of those who have no right to be in our country. The message is that Germany is open for skilled workers but then we can decide who comes," he said.

In June 2022, India and the EU resumed the negotiations after a gap of over eight years. It was stalled in 2013 due to differences over several issues.

With India, the Chancellor said, "we want to deepen our cooperation in defence and agree to bring our militaries closer together".

He noted that countries should not depend on one nation, particularly in the strategic importance of critical raw materials and certain technologies.

"For us, de-risking means diversification and this diversification is happening. Look at how India and German business have developed in recent years," Scholz said, recalling increasing cooperation between the two countries in areas like aviation, railways and automobiles.

He also said that China is an industrial giant and should give up the special treatment it has received as a developing country.

Germany is a key trading partner of India in the EU bloc. In 2023-24, India's exports to that country stood at about USD 10 billion, while imports were USD 16.7 billion. India also receives healthy foreign direct investments from Germany.

The FDI from Germany was USD 505 million in the last fiscal. During April 2000 and June 2024, the investments stood at USD 14.74 billion.