Finance Minister Nirmala Sitharaman engaged with top leaders and industrialists during her visit to Germany, focusing on enhancing bilateral trade relations within the context of the EU-India FTA deal. Discussions encompassed strengthening partnerships across various sectors such as manufacturing, technology, and agriculture. Notably, she met with Lars Klingbeil, Vice Chancellor and Federal Minister of Finance, Germany, to review the recent meeting between Prime Minister Narendra Modi and Federal Chancellor Friedrich Merz in India, which bolstered relations in defense, trade, and technology.
Merz’s official visit to India from January 12-13, accompanied by a delegation of 23 leading German CEOs and industry leaders, was highlighted during the discussions. Klingbeil emphasized the significance of the Free Trade Agreement (FTA) in promoting trade and investments in India, with a specific focus on bilateral development cooperation and the expansion of the Metro rail network in India. Sitharaman also shared insights on India’s successful Digital Payment systems and expressed a willingness to exchange best practices on the country’s digital infrastructure with Germany.
Further, Sitharaman met with Brigitte Haas, Prime Minister of Liechtenstein, and Alois Philipp Maria, Hereditary Prince Alois of Liechtenstein in Munich. Their discussions revolved around the current investments by Liechtenstein-based companies in India and the potential for expanding collaborations in manufacturing, environment-friendly technology, agriculture-related equipment, and Climate Change initiatives. Additionally, in a meeting with Christine Lagarde, President of the European Central Bank, they acknowledged the finalization of the India and the European Union Free Trade Agreement in January 2026. Sitharaman highlighted the role of the European Central Bank in facilitating trade under the agreement and announced India’s decision to permit EU banks to establish up to 15 branches over four years under the India-EU FTA framework.
Moreover, Sitharaman’s interaction with Oliver Zipse, Chairman of the Board of Management BMW AG, centered on India’s economic reforms, emphasizing policy continuity and stability amidst recent changes.
