Bota Posted on 2026-01-12 12:27:00

Towards EU-India free trade agreement/ Chancellor Merz meets with counterpart Modi in India

From Dorian Koça

Towards EU-India free trade agreement/ Chancellor Merz meets with counterpart

German Chancellor Friedrich Merz said the European Union and India could sign a free trade agreement within this month, after meeting with Indian Prime Minister Narendra Modi.

The presidents of the European Commission and the European Council will travel to India at the end of January to sign the agreement if it is finalized by then, Merz said during a visit to the western Indian city of Ahmedabad.

The negotiations were previously expected to be concluded by the end of this year. However, according to German government sources, there are high expectations that an agreement could be signed by the end of January after "very intensive" talks between Merz and Modi.

In particular, Germany wants to work more closely with India on security issues to reduce the latter's dependence on Russia, Merz said.

The countries signed a memorandum of understanding to this end, in addition to agreements on critical minerals, the health sector, and an innovation center for artificial intelligence.

"The MoUs being signed today on all these issues will give new momentum and strength to our cooperation," Modi said at a joint media conference with Merz.

India still works closely with Russia on security policy, and much of its military equipment is manufactured in Russia. It is also one of the largest buyers of Russian gas and oil, along with China.

Germany is pressuring the Indian government to prevent domestic companies from circumventing sanctions on Russia and to reduce energy imports from Russia, demands that India has so far rejected.

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