India’s External Affairs Minister S Jaishankar and German Foreign Affairs Minister Johann David Wadephul engaged in an impactful discussion on Wednesday in New Delhi. Trade, production collaboration, and tariffs were the key points of discussion.
External Affairs Minister S Jaishankar said that India discussed green hydrogen and green financing with Germany. The move bears significant importance as India is pushing its renewable energy efforts. A technological collaboration with Germany is seen as a booster in this regard.
Doubling India-Germany trade
As the German delegation visits India, the two countries discussed the free trade agreement and avenues for increasing the trade volume between the two countries.
German Foreign Minister Wadephul welcomed India’s openness towards doubling the two countries’ trade volume of 31 billion euros ($36.29 billion).
“I am glad that you are as optimistic about the prospects as I am,” Wadephul said, addressing his Indian counterpart, S Jaishankar.
Free Trade Agreement
The German Minister said a free trade agreement between India and the European Union could be expected in the next few months. He added, “If others put up trade barriers, then we should respond by lowering them.”
S Jaishankar also stresses on need for an open market for the expansion of trade between the nations. He said that the lower tariffs are mutually beneficial for the two nations.
The Indian External Affairs Minister also said that he is hopeful that another round of negotiations for a Free Trade Agreement with the European Union will take place soon.
The Indian minister also lauded the German investment in India’s semiconductor manufacturing sector.
FTA between India and four European nations
In a separate development, the free trade agreement between India and the four European nations in the EFTA bloc will come into force from October 1. The European Free Trade Association (EFTA) members are Iceland, Liechtenstein, Norway, and Switzerland.
Under the pact, India has received an investment commitment of USD 100 billion in 15 years from the grouping while allowing several products, such as Swiss watches, chocolates and cut and polished diamonds, at lower or zero duties.
Focus on key green financing and green hydrogen companies
The ongoing India-Germany talks no doubt puts the focus on some key green financing companies like PFC and many green hydrogen plays including IOCL.
