After India suspended negotiations on an FTA with Germany pending resolution of the issue of “unwarranted” bans on certain Indian drugs in Europe, both nations have now agreed to resume the trade talks. German Chancellor Angela Merkel visited PM Narendra Modi with a delegation of bosses of leading business firms Siemens, Airbus, E.ON and Thyssenkrupp. The trade agreement will be highly beneficial to both sides given Germany’s uncertainty regarding the Chinese economy, and India’s desire to boost exports. India reiterated its desire for a successful agreement but remained firm regarding its stance on Europe’s ban on its drugs.
“It’s our hope that this matter would be looked at fairly and sensibly and would hopefully not be an impediment to the free trade deal,” – Foreign Secretary Subrahmanian Jaishankar.
Besides talking about the FTA, the two countries also signed 18 other agreements, one of which stated Germany’s promise to provide more than 2 billion euros ($2.25 billion) for solar projects and power grids (green energy corridors) in India, in an effort to promote sustainable development. They also agreed to develop a mechanism for speeding up the process for business approvals for German firms in India.