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Economy

India-EU FTA will be a game-changer: German Ambassador

The proposed India-European Union (EU) Free Trade Agreement (FTA) is expected to significantly transform economic relations between India and Germany by encouraging greater trade, investment, and tourism, German Ambassador Philipp Ackermann said on Tuesday.

News Arena Network - New Delhi - UPDATED: July 28, 2026, 04:10 PM - 2 min read

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German Ambassador Philipp Ackermann.


The proposed India-European Union (EU) Free Trade Agreement (FTA) is expected to significantly transform economic relations between India and Germany by encouraging greater trade, investment, and tourism, German Ambassador Philipp Ackermann said on Tuesday.


Speaking on the sidelines of the Travel Destination Germany Press Conference 2026 in the national capital, Ackermann described the proposed trade pact as a major milestone that could unlock new opportunities for businesses and people in both regions.


Responding to a question on the impact of the India-EU FTA, the Ambassador expressed confidence that the agreement would strengthen commercial engagement between the two economies.


"It will be a game changer in many ways. It will lead to more German investment in India and perhaps also more Indian investment in Germany. The reduction of tariffs and other trade barriers between Europe and India will stimulate trade and investment across these markets," Ackermann said.


He also voiced optimism about the timeline for the agreement, expressing hope that it would be implemented during the first half of next year. "I'm very optimistic that once we implement this agreement in the first half of next year, we will begin to see meaningful changes over the following years in terms of business activities, travel, and overall engagement. I am confident that it will also lead to a rise in visitor numbers in both directions," he added.


The Ambassador made the remarks during an event organized to promote Germany as an attractive travel destination for Indian tourists. He noted that India has become an increasingly important tourism market for Germany, although considerable potential remains untapped.
According to Ackermann, Germany has witnessed a steady increase in the number of Indian visitors in recent years, but greater promotional efforts are needed to showcase the country's diverse tourism offerings to Indian travelers.


"We need to present Germany more actively as a travel destination in India. There is already growing interest, but there is still enormous potential that remains to be explored," he said.


He also highlighted the contribution of the growing Indian community in Germany to tourism flows. Visits by family members and friends of Indian students, professionals, and expatriates living in Germany have become an important driver of travel between the two countries.


Addressing concerns over whether geopolitical tensions and the rising popularity of destinations such as Japan and South Korea among Indian travelers could affect tourism to Germany, Ackermann dismissed fears of any significant slowdown.


"Overall, tourism in Germany continues to follow an upward trend. We are seeing a consistent increase in the number of Indian tourists visiting the country," he said.


The Ambassador observed that the preferences of Indian travelers have changed considerably over the past 15 years. While traditional sightseeing remains popular, today's tourists are increasingly looking for personalized travel experiences that include nature, trekking, outdoor adventures, and authentic cultural encounters.


He added that although affordability and evolving travel trends influence destination choices, Germany remains well-positioned to attract visitors through its rich cultural heritage, scenic landscapes, and diverse tourism experiences.


Ackermann reiterated Germany's commitment to strengthening people-to-people ties with India by promoting tourism and cultural exchanges alongside expanding economic cooperation.


Also speaking at the event, Romit Theophilus, Director of the German National Tourist Office, said Germany aims to surpass one million overnight stays by Indian visitors, which currently translates to a little over 300,000 tourists annually.

 

Also read: India's telecom subscriber base rises to 1.348 billion in June


"Our objective is to achieve more than one million overnight stays by Indian travelers. At present, that represents just over three lakh visitors," Theophilus said.


He explained that Germany is actively promoting tourism in India through targeted campaigns centered on city breaks, culinary experiences, honeymoon packages, destination weddings, and other themed travel offerings designed to appeal to Indian travellers.


According to Theophilus, Indian leisure tourists spend an average of nine nights in Germany and spend more than 3,000 euros per trip, with average daily expenditure of around 350 euros covering accommodation, food, transportation, and other travel-related expenses.


He also expressed optimism that stronger economic cooperation between India and Germany, supported by the proposed India-EU Free Trade Agreement, would further stimulate tourism. With more than 300,000 Indians currently residing in Germany—including students, skilled professionals, and their families—the growing diaspora continues to play an important role in fostering closer travel, cultural, and business links between the two nations.

 

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