Fast-Tracking India-EU Free Trade Agreement Negotiations Underway: German Chancellor

Scholz arrived in Delhi late Thursday for his 3-day official visit to India. During his stay, he and Prime Minister Modi will co-chair the seventh Intergovernmental Consultations 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

Source : ABPLIVE AI

German Chancellor Olaf Scholz said on Friday that his government is committed to achieving swift progress and a 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," Scholz said while addressing the 18th Asia-Pacific Conference of German Business 2024 in the presence of Prime Minister Narendra Modi.

Scholz arrived in Delhi late Thursday for his three-day official visit to India. During his stay, he and Prime Minister Modi 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 noted that the German government has recently developed a strategy to attract skilled Indian workers 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 to streamline procedures and enhance user-friendliness. "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 negotiations after a hiatus of over eight years, which had been stalled since 2013 due to disagreements on various issues. Chancellor Scholz expressed a desire to deepen cooperation with India in defence, emphasising the importance of closer military ties.

He highlighted that countries should not rely on a single nation, especially regarding the strategic significance of critical raw materials and certain technologies. "we want to deepen our cooperation in defence and agree to bring our militaries closer together," Scholz stated, pointing to the growing collaboration between India and Germany in sectors such as aviation, railways, and automobiles.

He also remarked that China, as an industrial giant, should relinquish the special treatment it has received as a developing country.

Germany is a key trading partner for India within the EU. In 2023-24, India's exports to Germany amounted to approximately $10 billion, while imports totalled $16.7 billion. Additionally, India attracts significant foreign direct investment (FDI) from Germany, with $505 million in the last fiscal year and total investments reaching $14.74 billion from April 2000 to June 2024.