‘Free Trade Over Isolationism’: Germany Chancellor Signals Strategic Push For India-EU Deal in Davos

As tariff wars and trade barriers return to global politics, Europe is recalibrating its economic strategy. German Chancellor Friedrich Merz has framed the India-EU free trade agreement as a great-power response to protectionism and isolationism. Speaking at Davos, Merz highlighted India’s growth momentum and regulatory stability as key reasons for deeper engagement. The deal, expected to be announced during the upcoming India-EU summit in New Delhi, could reshape global trade flows at a time when Trump-era tariffs are once again unsettling markets. With bilateral trade already at USD 135 billion, the agreement promises a qualitative shift in India-EU ties, placing New Delhi firmly at the centre of Europe’s long-term economic strategy.