"Time Is Good": German Envoy On Free Trade Agreement With India

German ambassador to India Dr Philipp Ackermann today said that the country's relationship with India will continue under the new government and there could even be a boost in many areas, including in service sector, defence and the free trade agreement with the European Union, which is on the anvil. 

"We have to say that there are a big, big range of other things that come to mind. Migration is one of them... dire need of skilled labor in Germany... Indians for the German labor market. There is a strong business point to be made," he said on the sidelines of an event in Delhi. 

German businesses are increasingly looking at India, he said, to diversify the investment. "And then I think one thing where we have to sit together is sort of a geopolitical situation. We are living in difficult times, and therefore it is good to compare notes," he added. 

Germany has leaned far right and conservative in the national election held in February.  And while the country faces many problems including a slowing economy, a war in Europe and US President Donald Trump's hard stance, the German envoy said the focus on India will continue. "There is no change in the German India policy, even within the new government," he said. 

On the economic front, Germany and the European Union are trying to develop a free trade agreement with India, he said while responding to a question on the "reciprocal tariffs" imposed by US President kicks in today.

"Germany and the European Union are promoters for free trade. We are sitting together and trying to develop a free trade agreement with India, to shape it, to negotiate it. So it goes without saying that tariffs on goods are not to our liking. We have made it very clear that we think it's not the right way," he said.  

While it is at the discretion of any country to shape its economic policy, "I don't foresee this as a great success in trade policy, international trade policy," he said. 

"The right reaction is when big markets, India is one, European Union is one, sit together and try to reduce tariffs as it is done and the free trade agreement. So I will say time. Time is high. Time is good to develop the free trade agreement and to shape it and to negotiate as quickly as possible," he said.

"Let me say, in all honesty, you have the President of the Commission of the European Union and the Prime Minister of India sitting together and saying, 'We commit ourselves that by the end of 2025 this agreement is negotiated and ready to be put on the table'. Now that's an imperative according to which we have to react. So I think it comes from the top level, and that's where we want to see. So I'm quite confident".

In February, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had issued directions to conclude the free trade agreement by the year-end.

Asked about Germany's take on the EU-India free trade prospects, he said, "We think it is a game changer for our business in India, as you will see more investment".