India wants to deepen trade ties with Germany amid widening trade deficit

New Delhi: Commerce and Industry Minister Piyush Goyal will travel to Berlin on Thursday to strengthen India’s economic and trade partnership with Germany, Europe’s largest economy and one of the world’s most influential industrial hubs, the commerce ministry said in a statement on Wednesday. For India, closer engagement with Berlin is seen as essential not only to boost bilateral investment but also to advance the ongoing India-European Union (EU) Free Trade Agreement (FTA) negotiations that have gained traction in recent months. The visit coincides with the 25th anniversary of their strategic partnership, a time when both countries are increasingly focused on diversifying global supply chains and expanding sustainable manufacturing links. Germany occupies a pivotal position on the global trade map – as a key architect of EU trade policy, a leader in high-end engineering and automotive technologies, and a crucial investor in emerging markets. During the visit, Goyal will hold bilateral meetings with the Federal Minister for Economic Affairs and Energy Katherina Reiche and Dr. Levin Holle, economic and financial policy adviser to the Federal Chancellor and Germany’s G7 and G20 Sherpa, the ministry said in a statement. “Discussions will focus on expanding cooperation in renewable energy, advanced manufacturing and technology-driven sectors,” the ministry added. The minister will also meet Luxembourg’s Deputy Prime Minister and Minister of Foreign Affairs and Trade, Xavier Bettel, to review bilateral trade relations and discuss Luxembourg’s upcoming state visit to India. As part of his visit, Goyal will participate in the Berlin Global Dialogue (BGD), an annual forum that brings together business and government leaders to debate shifts in the global economic order. Goyal’s schedule includes a series of chief executive officer (CEO) meetings with major German corporations such as Schaeffler Group, Renk Vehicle Mobility Solutions, Herrenknecht AG, Infineon Technologies AG, Enertrag SE and Mercedes-Benz Group AG. He will also chair a round table meeting with leaders of German Mittelstand companies and representatives of the Federation of German Industries (BDI) and the Asia-Pacific Association of German Business (APA). Trade with Germany remains negative as India’s exports stood at $10.53 billion in FY25, while imports were valued at $18.56 billion, according to commerce ministry data. In FY24, exports stood at $9.84 billion, and imports stood at $16.64 billion. The widening trade gap reflects India’s heavy reliance on German machinery, electrical equipment and precision technology, while exports are largely driven by textiles, chemicals and engineering goods. “Germany is a critical market for Indian exporters, especially in sectors such as engineering, chemicals and textiles. We expect the minister’s visit to help address market access challenges and encourage greater participation of German investors in India’s SME ecosystem,” said Vinod Kumar, president of the Indian SME Forum.