Germany’s Merz in India: Amid American squeeze, Europe steps in

India is strategically reorienting its partnerships towards the European Union as U.S. trade faces increasing tariffs. Germany’s Chancellor’s visit highlights this shift, with a potential EU free trade agreement and growing defense cooperation signaling a comprehensive, structural realignment in India’s foreign economic policy.

German Chancellor Friedrich Merz is in India to boost economic and security ties. This visit comes ahead of a planned EU-India free trade agreement. Discussions will cover trade, defense deals, and skilled labor recruitment. India seeks broader partnerships to reduce dependence on other nations. German companies see significant opportunities in India’s growing market.

Europe takes center stage in Indian diplomacy this week. German Chancellor Friedrich Merz visits Monday, seeking trade expansion before the EU free trade agreement. France’s Emmanuel Bonne arrives Monday and Tuesday, preparing for President Macron’s February trip. Poland’s foreign minister Radosław Sikorski follows. Prime Minister Modi meets Merz in Ahmedabad to boost cooperation.

India is aggressively seeking trade deals to open markets for exporters and soften the blow of steep US tariffs, as efforts to secure an agreement with Washington remain elusive. And while a free trade agreement (FTA) with New Zealand added little to Indian export growth, it secured $20 billion in foreign investment, increased visa access […]

India’s exports to European Union are showing strong growth. Spain is a standout market with significant export increases. Germany continues to be a stable destination for Indian products. Belgium and Poland also show positive export trends. These developments are occurring as India and the EU negotiate a free trade agreement, promising further bilateral trade growth.

India is set to participate in a key US-organized meet on critical minerals, with Minister Ashwini Vaishnaw likely to represent the nation. This engagement signals a broader US effort to diversify supply chains away from China’s dominance. India will also join the US-led Pax Silica initiative ahead of its AI summit.

A think tank argues that trade deals hinge on policy alignment, not leader calls. This challenges US Commerce Secretary Howard Lutnick’s claim that the India-US trade agreement stalled due to a missed phone call. GTRI asserts that complex negotiations break down over substantive issues like tariffs and market access. The trade impasse reflects hard policy […]

India and the European Union are moving closer to a free trade agreement. Discussions in Brussels showed good progress with fewer issues remaining. Both sides are committed to a fair and ambitious deal. Negotiations are speeding up to finalize the pact soon. This agreement is crucial for economic ties between India and the EU.

Telangana Chief Minister A. Revanth Reddy said the state will actively promote its Telangana Rising 2047 vision and aim for a $3 trillion economy at the World Economic Forum in Davos 2026. The delegation will showcase the state’s transformative growth plans, revisit past investment commitments, and highlight opportunities in innovation, technology, and inclusive development.

India apparel exports: The industry is already under pressure after the US imposed 50% tariffs on India last August, marked by deep discounts, diversion of idle capacity to domestic brands and rerouting of export orders through neighbouring countries.