German industry groups back India-EU FTA, flag export and supply chain gains

Germany’s industry associations, economic think tanks and private sector welcomed the signing of the India–European Union Free Trade Agreement (FTA), describing it as an economic and strategic gain that can support exporters, diversify trade ties, and reduce risks in global trade.

Sebastian Stiezel, President of the Berlin Chamber of Commerce (IHK Berlin), said the FTA is “an important step towards opening up in an increasingly tense global situation” and added, “India is no longer a future market, but a market of the present, in which Berlin should now seize the opportunities.”

Bertram Brossardt, Managing Director of the Association of Bavarian Businesses (vbw), said the agreement “sends a strong signal” and called it a “crucial step towards benefiting from a dynamic market, diversifying our trade relations, and strengthening our position in the Indo-Pacific region.”

Hildegard Mueller, President of the German Association of the Automotive Industry (VDA), said the FTA “sends a strong signal of decisive action!” and described it as “an important step for both regions, and especially for Germany as an export nation.”

Julian Hinz, Research Director at the Kiel Institute for the World Economy (IfW Kiel), said the deal would “open substantial parts of the economy, strengthen supply chains, and reduce vulnerability to geopolitical shocks.” IfW Kiel researcher Vasundhara Thakur called it a “stabilizer” that “provides an insurance mechanism against global trade turmoil and sends a strong signal that rules-based trade cooperation still works.”

Thilo Brodtmann, Managing Director of the German Engineering Federation (VDMA), said, “Europe is sending an unmistakable signal for rules-based trade and against the law of the jungle.”

Thomas Bürkle, President of the Association of Entrepreneurs Baden-Württemberg (UBW), described the FTA as a “breakthrough for Europe and a strong signal for the future of our export-oriented economy in Baden-Württemberg,” and said it is “more than a trade deal – it is an instrument for strengthening our economic resilience.”

In India, industry leaders also spoke in favour of the agreement and said the FTA has the potential to boost exports and support global supply chains.

Industry leaders from Europe and India said the FTA opens new business opportunities and marks a shift from extended negotiations to implementation.

Piyush Arora, MD and CEO of Skoda Auto Volkswagen India, said the agreement will support trade, investment, and technology transfer, while adding that the company will assess medium- and long-term implications as details emerge and continue offering its current range of vehicles and services.

Shailesh Chandra, President of SIAM and MD & CEO of Tata Motors Passenger Vehicles Ltd., said, “The FTA with EU will play a key role as India marches on towards ‘Viksit Bharat’.”

He added a calibrated approach balancing market access and domestic manufacturing, can create “a win-win between increased Global participation on one hand and growth of the domestic Auto Industry with Investments and Employment on the other hand.”

Santosh Iyer, MD & CEO of Mercedes-Benz India, said, “Mercedes-Benz welcomes the India-EU FTA,” adding that gradual tariff reduction on vehicles and liberalised trade in automotive parts are important for the sector.

He said the agreement can improve model availability and access to technology, while the company will continue local production.