India–Germany economic co-operation opens new frontiers for enhanced market access: PHDCCI

New Delhi, January 16, 2026: The India–Germany Joint Statement issued during the first official visit of H.E. Mr. Friedrich Merz, Federal Chancellor of the Federal Republic of Germany, to India marks a significant milestone in further deepening the long-standing strategic partnership between the two countries and reflects a shared commitment to expanding cooperation across key economic and strategic domains, said Rajeev Juneja, President, PHDCCI, in a press statement issued here today.
He highlighted the renewed emphasis placed by both governments on strengthening bilateral trade, investment, innovation, green and sustainable development partnership and research & development collaboration.
Enhanced engagement in priority sectors such as advanced manufacturing, semiconductors, digital and emerging technologies, green energy, and Industry 4.0 is expected to create substantial opportunities for businesses, startups, and MSMEs, while fostering innovation-led and sustainable economic growth in both economies, he said.
India-Germany economic partnership has strengthened significantly over the years with bilateral trade in goods and services surpassing USD 50 billion in 2024, amounting to over 25% of India’s trade with the EU. Also, Germany is the 9th largest investor in India, with cumulative foreign direct investment (FDI) inflows of US$ 15.63 billion from April 2000 to March 2025. The deepening of India–Germany economic cooperation is therefore poised to act as a catalyst for further expanding India–EU trade and investment flows in the coming years, he added.
The Joint Statement reaffirmed support for the early conclusion of the India–EU Free Trade Agreement. In addition, the Joint Declaration of Intent signed during the visit through the German–Indian CEO Forum aims to deepen bilateral economic cooperation by fostering stronger industry partnerships, leveraging the enduring presence of businesses in both India and Germany, he said.
We appreciate the announcement of visa-free transit for Indian passport holders through Germany, a forward-looking initiative that will significantly ease mobility for business professionals, students, researchers, and skilled workers. This facilitative measure will further strengthen people-to-people linkages and support deeper economic, academic, and technological engagement between India and Europe.
PHDCCI lauds the Indo-German Comprehensive Roadmap on Higher Education, which will significantly strengthen institutional linkages, joint degree programmes, and collaborative research between universities of both countries. The roadmap will play a vital role in building future-ready talent, enhancing academic mobility, and aligning higher education with industry 4.0 and innovation needs.
He further highlighted that this collaboration will pave the way for enhanced market access, technology transfer, resilient supply chains, and sustainable growth, thereby positioning India as a key economic partner for Europe in the evolving global trade landscape.
The joint statement signals a fundamental shift in Indo-German cooperation, where climate finance, green hydrogen, semiconductors, and critical minerals are no longer incidental issues but key pillars of economic security, and geopolitical alliance in the Indo-Pacific and beyond said Dr. Ranjeet Mehta, CEO & Secretary General, PHDCCI.