India-EU free trade pact to boost German investment

Bengaluru: The India-EU Free Trade Agreement is expected to give a fresh impetus to India-Europe trade and accelerate German investment in India, said Jan Noether, director general of the Indo-German Chamber of Commerce, at the inaugural edition of the Indo-German Engineering Summit 2026 held in Bengaluru on Tuesday.Speaking on the sidelines of the summit, Noether said the FTA would pave the way for a deeper business relationship between India and Europe, but stressed that increased trade would need to be accompanied by greater investment.“The FTA opens the door for a more intense business relationship. However, that has to be followed by investments in India. German companies have to improve their foothold in India in order to be long-term competitive. India is a very competitive market. The world meets in India,” he said.The summit, organised by the Indo-German Chamber of Commerce under the theme “Co-Innovate. Co-Engineer. Co-Create”, brought together German and Indian business leaders, engineering experts, technology companies, startups and industry stakeholders.Noether said Germany’s Mittelstand, or mid-sized companies, had a significant opportunity to expand in India and help strengthen local manufacturing and supply chains.“We still have to import quite a few components and materials in order to get our industrial setup positioned. German Mittelstand companies can contribute to closing these gaps and create a lot of opportunities when it comes to building sustainable supply chains in India,” he said.You use AI every day. Now get your AI Quotient. Take the AIQ test.