This article covers trade and investment between India and Germany: the EU-India Free Trade Agreement, bilateral trade in goods and services, the main items traded, investment in each direction, the mechanisms that support investors, and business events and projects. It draws on the MEA bilateral brief of June 2026, and figures are given as the brief states them, for the periods it names.
The EU-India Free Trade Agreement
According to the MEA brief of June 2026, the EU-India Free Trade Agreement was concluded on 27 January 2026 at the 16th India-EU Summit. The brief states that under the agreement India has secured market access for more than 99% of Indian exports by trade value to the EU.
The agreement also covers trade in services, trade remedies, rules of origin, social security arrangements, a mobility framework for skilled professionals, and emerging areas such as SMEs and digital trade. The brief notes that the FTA received broad support across Germany's political spectrum and business community, and that German export-oriented industries, especially automotive and mechanical engineering, see India as an important new market.
Germany's place in India's trade
Germany was the 8th largest trading partner for India in 2024-25 and is India's largest trading partner in the EU. The brief states that Germany accounts for roughly one-fourth of India's trade with the European Union.
Germany constituted over 2.37% of India's foreign trade in 2024-25, compared with 2.29% in 2023-24 and 2.24% in 2022-23. In the other direction, India constituted about 1% of Germany's total foreign trade in 2025, and India was Germany's 22nd largest trading partner in 2024.
Total bilateral trade in FY 2024-25, goods and services combined, reached US$ 51.23 bn. The brief notes that while the balance of trade has been in favour of Germany, bilateral trade has experienced continuous growth over the last few years.
Trade in 2025
The brief gives the following figures for 2025:
- Trade in goods and services: an all-time high of US$ 52.13 billion
- Trade in goods, as per Destatis: an all-time high of US$ 35.37 billion, with exports from India at US$ 16.95 billion and imports to India from Germany at US$ 18.43 billion
- Trade in services, as per Bundesbank: US$ 16.76 billion, with Indian services exports to Germany of US$ 10.36 billion and Indian services imports from Germany of US$ 6.40 billion
Trade from April to December 2025
During April to December 2025, bilateral trade in goods increased by 3.36% compared with the same period in 2024, reaching US$ 26.83 billion. Indian exports to Germany reached US$ 12.78 billion, an increase of 11.02%, while Indian imports from Germany stood at US$ 15.05 billion, a decline of 2.75% compared with the same period in 2024.
In the same period, bilateral trade in services stood at US$ 12.59 billion (-5.48%). Indian services exports to Germany were US$ 7.83 billion (-8.82%) and Indian imports were US$ 4.76 billion (-3.37%).
Main items traded
Major Indian exports to Germany listed in the brief include:
- Machinery, clothing and textiles
- Chemical products and pharmaceutical products
- Coal and petroleum products
- Steel and other metals
- Data processing equipment, electrical and optical products, and electrical equipment
- Leather and leather products
The brief describes Germany as an export-led economy. Its major exports to India include machinery, vehicles and parts, chemical products, data processing equipment, electrical and optical products, electrical equipment, metals and metal products, collection, treatment and disposal of waste and recyclables, rubber and plastic products, and pharmaceutical products.
German investment in India
Germany is the 10th largest foreign direct investor in India, with cumulative FDI in India of US$ 15.50 billion from April 2000 to December 2025. German investments in India were US$ 469 million in FY 2024-25 and US$ 547 million in FY 2022-23. The brief comments that, while consistent, these inflows fall short of the potential between the two economies.
Based on the Mission's research, as cited in the brief, German companies announced fresh investment commitments exceeding US$ 6.91 billion since 2024, across sectors like automotive, chemicals, manufacturing and services. As per the Indo-German Chamber of Commerce, there are more than 2000 German companies active in India.
German investments in India have been mainly in transportation, electrical equipment, metallurgical industries, the services sector (particularly insurance), chemicals, construction activity, trading and automobiles. The brief states that most major German companies, including the automobile and machinery companies, are present in India.
The Make in India Mittelstand programme
The brief describes German Mittelstand (SME) companies, which make up over 90% of the German manufacturing sector, as the backbone of the German economy. The Embassy of India has run the Make in India Mittelstand (MIIM) Program since September 2015 as a Market Entry Support Programme for high-potential Mittelstand companies with medium to long-term potential for manufacturing in India.
As of the brief, the programme is facilitating 262 German member companies with their investments in India, covering a total declared investment volume of US$ 2.3 billion. Over 30 of these companies are described as hidden champions, which are global market leaders in niche products or technologies.
Indian investment in Germany
According to the brief, Indian investments in Germany have increased in the last few years. Besides trading, Indian companies are setting up value chain activities in Germany, manufacturing goods and services locally and engaging in R&D and innovation. More than 215 Indian companies are operating in Germany, with IT, automotive, pharma, biotech and manufacturing receiving a major portion of Indian investment.
Fast Track Mechanisms for investors
India and Germany have two Fast Track Mechanisms (FTM) for resolving issues faced by investors in each other's country. The FTM for German companies in India has been operational since March 2016, led by the Department for Promotion of Industry and Internal Trade (DPIIT) and the German Embassy in New Delhi. Its 11th Meeting was held on 25 April 2025.
An FTM for Indian companies operating in Germany was set up in the German Ministry for Economic Affairs & Energy (BMWE) in April 2019, with review meetings at the level of State Secretary, BMWE, and the Indian Ambassador to Germany. The brief states that no cases have so far been raised under this mechanism by Indian investors in Germany. Invest India functions as the Secretariat for the FTMs.
Business dialogue and outreach
Economic issues were earlier discussed at the Joint Commission on Industrial and Economic Cooperation, which last met in New Delhi in September 2010. Since the launch of the IGC in 2011, economic issues have been discussed at the IGC.
The 18th Asia-Pacific Conference of German Business (APK) was held from 24 to 26 October 2024 in New Delhi, on the sidelines of the 7th IGC, and was addressed by the Prime Minister and then Chancellor Scholz. During Chancellor Merz's visit in January 2026, a CEO Forum in Ahmedabad was attended by 23 CEOs from Germany.
Commerce & Industry Minister Shri. Piyush Goyal visited Germany from 22-24 October 2025 for discussions with his counterpart Ms. Katherina Reiche and with business leaders. Union Textile Minister Shri Giriraj Singh visited Germany in January 2025 for Heimtextil 2025 and addressed global investors on investing in the Indian textile industry.
Chief Ministers of Rajasthan, Madhya Pradesh and Tamil Nadu have visited Germany to attract investments. In February 2026, a delegation from Uttar Pradesh led by Deputy Chief Minister Shri Keshav Prasad Maurya took part in a business roundtable in Frankfurt, during which an MoU was signed between Motherson and the UP government.
Trade fairs
According to the brief, Indian companies are regular participants in major German trade fairs, including the Hannover Industrial Trade Fair. The brief states that in recent years India is the only country to have been selected twice as a partner for the Hannover Messe.
India has also been Partner Country at the Anuga Food Fair (2017), Ambiente (2019) and the Biofach Fair in Nuremberg (10-13 February 2026). The brief also names ITB (Tourism) and the Berlin Air Show as important fairs for Indian participation.
Aviation
Airbus board members visited India from September 29 to October 2, 2025. On 30 September 2025, Airbus and Air India inaugurated a pilot training centre in Gurugram aimed at training over 5,000 pilots, and on 1 October 2025 Airbus and Tata Advanced Systems unveiled India's first private helicopter Final Assembly Line in Karnataka, for the H125.
Earlier, on 28 August 2025, Airbus awarded Mahindra Aerostructures the contract for the H125 helicopter fuselage. Mr. Rene Obermann, Chairman of Airbus, met the Prime Minister on 30 September 2025.