India-EU FTA to drive German investment into India: Indo-German Chamber chief

Bengaluru: The India-EU free trade agreement is expected to strengthen trade between India and Europe and drive greater investment by German companies in India, Jan Noether, director general of the Indo-German Chamber of Commerce, said on Tuesday.

At the Indo-German Engineering Summit 2026 in Bengaluru, Noether said in a statement that the agreement would create opportunities for a closer business relationship between India and Europe, but greater trade would need to be accompanied by higher investment in India

“The FTA opens the door for a more intense business relationship. However, that has to be followed by investments in India. German companies have to improve their foothold in India in order to be long-term competitive. India is a very competitive market. The world meets in India,” he said.


Noether said Germany’s Mittelstand, or mid-sized companies, could play a larger role in building local supply chains in India. German companies still need to import several components and materials for their industrial operations in India, he said.

“German Mittelstand companies can contribute to closing these gaps and create a lot of opportunities when it comes to building sustainable supply chains in India,” he said.

The summit, organised by the Indo-German Chamber of Commerce, brought together companies and industry stakeholders to discuss opportunities in engineering, artificial intelligence, advanced manufacturing and technology.

Noether said India’s talent pool, education and technology capabilities could complement Germany’s engineering expertise as manufacturing becomes more digital.

“Everything will increasingly revolve around AI development, smart manufacturing and advanced manufacturing. If that comes together with the experience of German mid-sized companies, new initiatives will be unveiled,” he said.

Bengaluru’s engineering talent, global capability centres, technology companies and startup ecosystem make Karnataka an important market for German companies, Noether said.

“It is the spirit, the wonderfully positioned GCCs, the entrepreneurship, and the intent to form teams and build initiatives together,” he said.

He also called for greater engagement between companies and government representatives in Karnataka and Germany, including investment delegations, to build business relationships and identify opportunities for collaboration.

The summit also discussed opportunities for German and Indian companies to work together in areas such as automotive, chemicals, sustainability, AI, smart manufacturing and engineering.

Noether said stronger partnerships between German companies, Indian suppliers and technology companies could help build local supply chains and create engineering and manufacturing capabilities that serve global markets.