Piyush Goyal’s visit to Germany: Trade, investment and the India–EU economic partnership
By Aroonim Bhuyan
New Delhi. Commerce and Industry Minister Piyush Goyal’s official visit to Germany needs to be viewed against the broader effort by New Delhi and Berlin to deepen bilateral economic cooperation, expand industrial and technological partnerships, and advance the India-European Union Free Trade Agreement (FTA) negotiations. Germany, Europe’s largest economy and one of India’s most important European trading partners, occupies a central position in India’s strategy to diversify export markets, attract advanced manufacturing investment and integrate domestic industry into global value chains.
The visit also comes at a time when both countries have strong incentives to strengthen economic resilience amid geopolitical uncertainty, supply-chain realignment, competition for critical technologies and changing patterns of international trade.
Goyal undertook the Germany leg of his official tour from October 22 to 24, 2026, before proceeding to the Netherlands. He was accompanied by a delegation of around 100 Indian businesses and startups, reflecting the government’s intention to combine ministerial diplomacy with direct business-to-business engagement.
The principal engagements in Berlin included bilateral talks with German Federal Minister for Economic Affairs and Energy Katherina Reiche; participation in the Berlin Global Dialogue, a forum bringing together policymakers and business leaders; an India–Germany Business Roundtable with German corporate executives; meetings with senior representatives of major German companies; discussions with industrial research institutions, including selected Fraunhofer Institutes; engagements with Indian researchers, students and members of the Indian diaspora in Germany.
The visit had three closely connected objectives: strengthening bilateral trade and investment, encouraging German participation in India’s manufacturing and technology sectors, and building support for a more ambitious India–EU trade relationship.
High-level talks with Germany’s Economic Affairs Minister
On October 22, Goyal held bilateral discussions with Katherina Reiche, Germany’s Federal Minister for Economic Affairs and Energy. The talks centred on strengthening industrial cooperation, expanding trade and investment, and examining how the proposed India-EU Free Trade Agreement could generate new commercial opportunities.
The two sides discussed the potential to translate closer economic engagement into industrial partnerships and stronger investment links. They also considered opportunities in advanced engineering, green mobility and clean technology, areas where Indian manufacturing capacity and Germany’s technological expertise could be complementary.
The importance of this meeting extends beyond the immediate bilateral relationship. Germany is a major voice in European economic policymaking, and its support for closer engagement with India could help give the proposed India–EU trade agreement a stronger industrial and business constituency.
For India, the priority is to attract German capital, manufacturing expertise and technology while increasing exports of Indian products and services. For Germany, India offers a large domestic market, an expanding industrial base, a substantial engineering workforce and opportunities to diversify production and sourcing.
However, the public account of the meeting did not announce a new bilateral treaty, a quantified investment package or a specific list of newly awarded projects. The principal outcome reported was agreement on the importance of deeper industrial and economic cooperation, particularly in the context of the prospective India-EU FTA.
India-EU Free Trade Agreement takes centre stage
The proposed India-EU FTA was one of the most consequential issues surrounding Goyal’s visit.
On October 22, Reuters news agency reported that Goyal expected the agreement to be signed before the end of 2026 and said it could become operational within four to five months of signing, potentially in early 2027. This was a projected timeline, not confirmation that the agreement had already been concluded or that implementation was guaranteed.
The trade negotiations matter directly to India-Germany relations because an agreement between India and the EU’s 27 member states would reshape the commercial framework in which Indian and German companies operate.
Why the FTA matters to both countries
For India, the agreement could improve access to European markets for manufactured goods, engineering products, pharmaceuticals, textiles, chemicals and other export categories, subject to the final tariff schedules and rules of origin. It could also improve the conditions for Indian services companies and skilled professionals, depending on the agreement’s provisions.
For Germany, a more predictable trade and investment framework could make it easier for companies to expand manufacturing, sourcing, research and commercial operations in India. German firms could use Indian facilities not only to serve the domestic market but also, where commercially viable and consistent with applicable trade rules, to supply other markets.
For both sides, the agreement could encourage longer-term investment decisions by reducing uncertainty about market access and trade rules. This is particularly relevant to capital-intensive industries in which businesses need confidence about future demand, regulatory conditions and cross-border supply chains.
The potential gains must nevertheless be assessed against the eventual agreement’s details. Sensitive sectors, tariff reductions, regulatory standards, sustainability requirements and rules of origin will influence which businesses benefit and how quickly.
The immediate significance of Goyal’s discussions in Berlin was therefore to connect the FTA negotiations with the practical concerns of businesses: investment decisions, market access, production locations and industrial collaboration.
India-Germany Business Roundtable and industrial partnerships
Goyal and Reiche jointly chaired an India-Germany Business Roundtable organised with the German Council on Foreign Relations (DGAP) and the Asia-Pacific Committee of German Business (APA).
The gathering brought together German corporate leaders and business representatives to discuss how the proposed India–EU FTA could be translated into concrete commercial opportunities. Goyal’s address focused on accelerating growth and opening a new era of trade, while Reiche emphasised turning the prospective agreement into industrial reality.
This business engagement was important because trade agreements do not automatically produce factories, jobs or technology transfers. Their benefits depend on companies responding to the new commercial environment by investing, establishing partnerships and developing supply networks.
The roundtable offered a forum to examine how Indian and German companies could work together in manufacturing, engineering, infrastructure, energy and other sectors. It also brought government priorities into direct conversation with business expectations.
The accompanying Indian delegation included businesses and startups, allowing the visit to address opportunities for smaller and emerging enterprises alongside established corporations. Its programme included sectoral discussions covering automotive and advanced manufacturing, infrastructure and energy, information technology and artificial intelligence, agri-food, consumer goods, textiles, healthcare and pharmaceuticals.
The intended outcome was to encourage commercial partnerships rather than rely solely on diplomatic declarations. The publicly reported engagements, however, should not be interpreted as proof that every sector discussed secured a new investment commitment.
Berlin Global Dialogue: India’s economic role in a changing world
Goyal participated in the Berlin Global Dialogue on October 22, in a panel titled ‘New Era, New Alliances: The Third Path?’
The discussion included Martin Blessing, the German Chancellor’s Personal Representative for Investment; Singapore’s Minister for Manpower and Minister-in-charge of Energy and Science & Technology, Tan See Leng; and Marcegaglia Steel Chairwoman and CEO Emma Marcegaglia.
It was moderated by Lars-Hendrik Röller. Goyal highlighted the importance of trust, complementary economic strengths and resilient supply chains in international partnerships.
The discussion was relevant to India’s economic diplomacy at a time when companies and governments are reassessing their dependence on concentrated sources of supply and navigating trade restrictions, geopolitical tensions and industrial competition.
India’s pitch to international investors is that it can serve as both a large consumer market and a competitive production base. Germany, meanwhile, has a strong interest in maintaining access to diversified markets, suppliers and technological partners.
The idea of a “third path” also reflects a broader search for economic partnerships that are not excessively dependent on any single country or geopolitical bloc. For India, this aligns with its pursuit of strategic autonomy and multiple international partnerships. For German businesses, it offers an opportunity to diversify commercial exposure while continuing to operate in established markets.
The practical test is whether this strategic convergence leads to additional investment, new production facilities, technology collaboration and sustained trade growth.
Meetings with leading German companies
A significant part of the visit involved direct engagement with corporate decision-makers. The meetings covered pharmaceuticals, healthcare technology, construction materials, investment, automotive manufacturing and other areas of industrial cooperation.
Goyal met Stefan Oelrich, a member of Bayer’s management board and head of its pharmaceuticals division. The discussions explored opportunities for business and investment cooperation. For India, potential areas of interest include pharmaceutical innovation, research partnerships and the broader life-sciences ecosystem; the reported meeting did not establish a new project in any particular area.
Goyal met managing partner Murat Akyildiz. The engagement formed part of the wider effort to explore business and investment opportunities between the two countries. Cooperation involving building materials and industrial production could be relevant to India’s infrastructure and urban development requirements, although no new Knauf investment was quantified in the official account.
Goyal met CEO Michael Sen to explore business and investment cooperation. The engagement was relevant to India’s growing healthcare requirements and the potential for deeper commercial relationships with German healthcare companies. The official announcement did not identify a specific new Fresenius project or financial commitment.
On October 23, Goyal met CEO Bernd Montag. The discussions sought to explore expanded business partnerships, investment and industrial cooperation. The company’s medical technology expertise makes healthcare equipment and related innovation relevant areas of interest, but the official account did not announce a new contract.
Goyal met Holger Peters, Volkswagen AG’s chief financial officer and CEO of Skoda Auto. The talks explored opportunities to expand industrial cooperation, investment and business partnerships. The engagement was relevant to India’s automotive manufacturing ecosystem and the scope for further cooperation with German automotive companies, although no additional investment figure or new production commitment was reported.
Taken together, the corporate meetings demonstrated the breadth of the economic relationship. They also underscored the government’s effort to connect trade diplomacy with individual companies that have the capacity to make substantial, long-term investment decisions.
The distinction between investment discussions and announced investment commitments remains important. The official summaries described opportunities for cooperation but did not provide a consolidated financial value for new projects arising from these meetings.
Cooperation with Fraunhofer Institutes: A push for advanced technology
One of the most strategically important components of Goyal’s October 23 programme was his interaction with the heads of selected Fraunhofer Institutes, Germany’s prominent applied-research network.
The discussions covered six areas: microelectronics; power electronics; logistics; smart manufacturing; industrial innovation; and battery technologies
The objective was to explore closer research collaboration and stronger links between universities, research institutions and industry in India and Germany. Goyal also interacted with Indian science and technology researchers and students based in Germany.
Why this engagement matters
India is seeking to move beyond its traditional strengths in software services, generic pharmaceuticals and selected engineering sectors towards greater participation in advanced manufacturing and technology-intensive production. Germany, with its industrial research infrastructure and engineering expertise, is a natural partner in this effort.
Microelectronics and power electronics are important for industrial automation, electric vehicles, renewable energy systems and modern electronic equipment. Collaboration in these fields could help Indian firms develop capabilities in components and technologies that are essential to sophisticated manufacturing.
Smart manufacturing offers another opportunity. The integration of sensors, robotics, industrial software and data-driven production systems can improve productivity, quality control and manufacturing efficiency. German experience in industrial automation could complement India’s expanding manufacturing base and engineering workforce.
Battery technologies are particularly relevant to electric mobility, renewable-energy storage and the development of more resilient energy systems. Research partnerships could help companies and institutions work on improved performance, production processes and industrial applications.
Logistics and industrial innovation also matter because competitive manufacturing depends not only on the factory itself but on the efficient movement of components, reliable infrastructure and the ability to translate research into commercial products.
The Fraunhofer engagement was therefore significant as an effort to develop the technological foundations of the partnership. Nevertheless, discussions about cooperation should not be mistaken for completed technology transfers or formally established joint research programmes unless these are separately announced.
Levin Holle meeting: Economic policy and investment
On October 23, Goyal held a bilateral meeting with Levin Holle, the economic and financial policy adviser and G7/G20 Sherpa at the German Federal Chancellery.
The discussions covered bilateral economic cooperation and opportunities to strengthen trade and investment ties.
This engagement complemented the ministerial and corporate meetings by bringing the economic relationship into the German federal government’s broader policy framework.
India and Germany have a shared interest in promoting stable investment conditions, strengthening business links and reducing vulnerabilities arising from excessive dependence on concentrated supply chains. Their discussions also took place against the background of the India–EU FTA negotiations and the changing international economic environment.
The participation of an official associated with Germany’s G7 and G20 coordination was relevant because trade, investment, technology and supply-chain resilience are increasingly connected to wider international economic policymaking.
Inauguration of the India Centre at DGAP
On October 22, Goyal and Reiche jointly inaugurated the India Centre at the German Council on Foreign Relations (DGAP) in Berlin.
The centre is intended to promote policy research and dialogue on India–Germany relations. Its inauguration formed part of the wider effort to strengthen the intellectual and institutional foundations of the bilateral partnership.
The initiative is significant because economic relationships are shaped not only by government negotiations and business transactions but also by how policymakers, researchers and corporate leaders understand one another’s priorities.
India and Germany have considerable scope to expand cooperation, but differences in regulatory systems, business practices, industrial priorities and perceptions can complicate commercial engagement. A dedicated platform for policy dialogue can help sustain discussion of these issues between official visits.
It could also provide a forum for examining the implications of the India-EU FTA, the future of industrial supply chains, technological competition and the role of India in Europe’s wider Indo-Pacific engagement.
The centre’s long-term value will depend on the quality of its research, the diversity of its participants and its ability to inform policy and business decisions. Its inauguration was an institutional development rather than a trade agreement in itself.
Indian business delegation: Connecting diplomacy with commercial opportunities
The delegation of around 100 Indian businesses and startups accompanying Goyal was an important feature of the wider Germany-Netherlands tour.
In Berlin, the delegation participated in sectoral roundtables with German industry representatives and business associations. It also had a programme involving an India-Germany Investment Roundtable with Germany Trade & Invest (GTAI), as well as engagement with research institutions and think tanks.
The participation of startups alongside established businesses was particularly relevant. Large corporations can undertake major manufacturing investments, while startups and smaller enterprises may bring specialised technologies, digital products and new business models.
For the Indian government, the objective is to convert diplomatic access into concrete business outcomes: commercial agreements, export orders, research partnerships, investment decisions and access to distribution networks.
For Indian firms, Germany offers access to one of Europe’s most sophisticated industrial markets. However, success requires meeting European standards, demonstrating product reliability, building local commercial relationships and navigating regulatory requirements.
The delegation’s programme created opportunities for these connections to develop, although the extent of its commercial impact will become clearer only when individual agreements and investments are disclosed.
India-Germany trade: The economic foundation
India and Germany have a substantial economic relationship, supported by German industrial investment in India and Indian exports of manufactured goods, pharmaceuticals, chemicals, engineering products and services.
According to figures reported in coverage of the visit, bilateral trade stood at $31.03 billion in Indian financial year 2025–26, with Indian exports to Germany registering year-on-year growth of 8.44 percent.
That figure provides an important indication of the scale of the relationship, although the precise composition of trade and the relative contributions of goods and services require separate data.
The next stage of cooperation is not simply to increase the total value of trade. It is also to diversify the range of products traded, improve the value added within India, encourage investment in manufacturing and research, and enable more Indian companies to enter German and wider European markets.
Germany is particularly relevant to India’s ambitions because its economy is built around industrial production, engineering, machinery, chemicals, automotive manufacturing and technological innovation. These are sectors in which India seeks to expand its own capabilities.
India, in turn, offers German companies opportunities in a large and growing market, a broad engineering and technology workforce, and a manufacturing ecosystem that the government is seeking to strengthen.
The proposed India-EU FTA could reinforce these complementary strengths by improving the commercial framework within which businesses on both sides make investment and sourcing decisions.
Strategic significance for India and Germany
The visit had significance extending beyond immediate trade negotiations. Four broader considerations stand out.
The global economy has become increasingly sensitive to geopolitical disruptions, trade restrictions and excessive concentration of critical production. India and Germany have incentives to diversify their commercial relationships and develop more resilient supply chains.
For Germany, India could become a more important manufacturing and sourcing partner. For India, German industrial expertise and investment could support the development of domestic capabilities in advanced manufacturing, electronics, automotive components and other sectors.
The challenge is to turn the broad objective of diversification into economically viable projects that can compete on cost, quality and reliability.
India wants to strengthen its position in higher-value manufacturing rather than rely primarily on assembly or lower-value production. The Fraunhofer discussions and meetings with German companies were relevant to this ambition.
Research collaboration, industrial automation, advanced materials, battery technologies and microelectronics could help Indian companies improve productivity and develop more sophisticated products.
For Germany, partnerships with Indian institutions and companies offer opportunities to access a large technical workforce and participate in a rapidly developing industrial market.
The key issue is whether these engagements lead to durable research partnerships, commercialisation and greater domestic technological capability.
German investment can potentially support new production facilities, research centres, supplier networks and skilled employment in India. Indian companies can also explore investment opportunities in Germany and use the country as a base for European commercial operations.
However, new investment depends on factors beyond political goodwill. Businesses evaluate infrastructure, market access, regulatory predictability, labour skills, supply-chain costs and the expected return on capital.
The ministerial visit could help identify and address opportunities, but the actual investment impact must be assessed through subsequent project announcements and implementation.
Germany’s position as Europe’s largest economy makes it an influential partner in India’s engagement with the European Union.
Progress on the India-EU FTA could improve the environment for bilateral commercial cooperation, while closer India-Germany industrial ties could give businesses on both sides a practical stake in the broader relationship.
The relationship is therefore best understood at three interconnected levels: bilateral cooperation between India and Germany, the wider India–EU economic partnership, and collaboration on global supply-chain and technology challenges.
Goyal’s October 22–23 engagements in Berlin demonstrated a concerted effort to deepen India’s economic relationship with Germany through political dialogue, corporate engagement, industrial research and business networking.
The meeting with Katherina Reiche put industrial cooperation and the prospective India–EU FTA at the centre of the agenda. The business roundtable connected these priorities with German corporate leaders, while meetings with Bayer, Knauf, Fresenius, Siemens Healthineers, Bertelsmann, Volkswagen and Škoda explored potential avenues for commercial cooperation. The Fraunhofer discussions added an important technology and research dimension.
The inauguration of the DGAP India Centre also created an institutional platform for continued policy dialogue.
Taken together, these engagements reflected India’s effort to position itself as a more important economic and manufacturing partner for Germany, while encouraging German firms to view India as a long-term destination for investment, production and innovation.
Nevertheless, the visit’s success should not be measured solely by the number of meetings held. The more meaningful indicators will be whether companies announce new investments, research partnerships become operational, bilateral trade expands, Indian exports gain market share and the India-EU FTA advances towards implementation.
The central takeaway is that the Berlin visit sought to move India-Germany relations from broad strategic goodwill towards more practical economic cooperation. Its full significance will depend on the extent to which the discussions translate into measurable commercial and technological outcomes.
