Germany's Scholz presses for India-EU trade pact

NEW DELHI — Germany's Chancellor Olaf Scholz visited India on Saturday seeking to deepen business and defense ties between the two major economies and jump-start progress on an EU trade deal.

"We want to further strengthen our bilateral relationship with India and our cooperation on global issues such as mitigating climate change and transforming our economies in a just, green, and sustainable way," Scholz told the Times of India.

"There is huge potential for intensified cooperation in sectors such as renewables, hydrogen, mobility, pharma, digital economy, and many more," he said.

Scholz, accompanied by executives of major German companies including Siemens, met Prime Minister Narendra Modi in New Delhi and was due to head to Bengaluru to visit German software companies on Sunday.

The chancellor said he wanted progress toward a trade deal between the European Union and India that has long been held up by disagreements on tariffs and access for Indian workers to Europe.

"I am in favor of applying more pressure. In recent years there have been periods when really not much has happened. My impression is that this is changing," Scholz told reporters.

'Important topic'

"It's an important topic, and I'll get personally involved," he said after his meeting with Modi.

The EU and India revived negotiations to forge a free-trade agreement last year with the aim of completing talks by the end of this year. For the EU, an FTA with India would fit its strategy of increasing engagement with the Asia-Pacific region, where the bloc is targeting bilateral deals to take advantage of expected higher economic growth.

The two leaders also discussed the ongoing Russia-Ukraine conflict. Modi said the effects of the conflict and the COVID-19 pandemic have been felt across the world and had a particularly negative impact on developing countries.

Modi maintained his cautious approach and said his country wanted the conflict to be ended through dialogue and diplomacy. "India is ready to make its contribution to any peace initiative," he said.

The two leaders also heard thoughts and suggestions from industry leaders of both countries on topics such as digital transformation, financial technology, telecommunications and diversification of supply chains, Modi said.

Agencies - Xinhua