Commerzbank’s Economic Research report highlights the recent agreement between the European Commission and India on a free trade agreement. This deal is expected to significantly benefit the German economy, which currently has limited trade with India. The agreement aims to reduce high tariffs imposed by India, enhancing trade relations and economic growth between the two regions.
Significant economic implications for Germany
“According to a press release from the European Commission, the leaders of the European Union and India have agreed on a comprehensive free trade agreement. However, it will only become legally binding after a ratification process on both the European and Indian sides.”
“With a free trade agreement between the EU and India, trade between Germany and India is likely to increase significantly. This is mainly because India currently imposes very high tariffs, with an unweighted average tariff of 15%.”
“While the trade agreement with the Mercosur countries has met with considerable political resistance and has still not provisionally entered into force, the trade agreement with India could be implemented more quickly.”
