Germany is keen on India’s FTA with the European Union. Talks on the free trade pact started in 2007 but have been marred by flip-flops and disagreements. The last round of talks was held in 2013 and the discussions have remained deadlocked on issues including tariffs on automobiles and wines and spirits.

India has decided to unilaterally terminate all existing investment treaties with EU partner countries in place of a model Bilateral Investment Treaty. Germany wishes India had not done this.

Germany feels India and the EU should not focus on issues like tariffs and import duties but instead on the larger issues involved.

India and Germany are set to ink a series of agreements to further deepen ties in key areas of trade, investment and energy, besides exploring ways to step up defense cooperation.

Both India and the EU have reservations on China’s decision to put billions of dollars in infrastructure projects including railways, ports and power grids across Asia, Africa and Europe. A strand of the China-Pakistan-Economic Corridor cuts through Gilgit and Baltistan in Kashmir, which India claims are illegally held by Pakistan.

Germany is ready to conclude a government-to-government agreement with India in defense procurement and feels India is a strategic partner for Germany and provides stability in Asia.