FM Nirmala Sitharaman Engages German and European Leaders to Deepen Trade, Investment Ties

New Delhi, Feb 2026 : Union Finance Minister Nirmala Sitharaman held a series of high-level meetings with political leaders, central bankers, and industry captains during her visit to Germany, focusing on strengthening bilateral trade and investment relations in the context of the recently concluded India–European Union Free Trade Agreement (FTA). The discussions underscored India’s intent to scale up cooperation across manufacturing, technology, finance, and agriculture, the Finance Ministry said on Sunday.

During her visit, Sitharaman met Lars Klingbeil, Vice Chancellor and Federal Minister of Finance of Germany. The two leaders reviewed the outcomes of the recent meeting between Narendra Modi and German Chancellor Friedrich Merz, held in India in January, which significantly boosted bilateral cooperation, particularly in defence, trade, and advanced technology. Merz’s visit, accompanied by a delegation of 23 leading German CEOs and industry representatives, was seen as a strong signal of growing confidence in India’s economic potential.

Klingbeil described the India–EU Free Trade Agreement as a major milestone for expanding trade and investment flows. He highlighted opportunities in bilateral development cooperation and expressed keen interest in India’s metro rail expansion programme, which has emerged as a major area for foreign investment and technological collaboration. Sitharaman, in turn, briefed him on the success of India’s digital public infrastructure, particularly its digital payments ecosystem, and conveyed India’s willingness to share best practices from its digital stack with Germany.

The Finance Minister also met Brigitte Haas and Alois Philipp Maria in Munich. The discussions focused on strengthening investment ties, with both sides reviewing ongoing investments by Liechtenstein-based companies in India. They agreed to explore further collaboration in manufacturing, environment-friendly technologies, agriculture-related equipment, and climate change mitigation initiatives.

In another key engagement, Sitharaman held talks with Christine Lagarde, President of the European Central Bank. Both leaders noted the finalisation of the India–EU Free Trade Agreement in January 2026 and discussed the role the ECB could play in facilitating smoother financial transactions and trade flows under the new framework. Sitharaman emphasised that regulatory cooperation and financial connectivity would be critical to unlocking the full potential of the agreement.

Highlighting India’s reform-driven approach, Sitharaman said that the Union Budgets for FY 2025–26 and FY 2026–27 include provisions to allow EU banks to open up to 15 branches in India over a four-year period under the India–EU FTA framework, a move expected to deepen financial integration.

Earlier, the Finance Minister also met Oliver Zipse, Chairman of the Board of Management of BMW AG. Their discussions centred on India’s economic reforms, policy continuity, and long-term stability, reinforcing India’s position as an attractive destination for global manufacturing and investment.