Indore, Jun 12 (PTI) The proposed India-European Union Free Trade Agreement (FTA) will give a fresh momentum to Germany-India trade ties and create new opportunities for German companies to expand their presence, Germany's Consul General in Mumbai Christoph Hallier has said.

He also emphasised that, apart from traditional industrial hubs like Pune and Bengaluru, there are significant opportunities for German companies to expand into other regions of India as well.

"I am fully confident that once the India-EU free trade agreement comes into force, it will further boost our bilateral trade relations," Hallier told PTI in an interview in Indore on Thursday.

Germany is one of the founding members of the European Union.

Asked which sectors would benefit the most from the EU–India free trade agreement, he said, ‘I believe this agreement covers almost all sectors. From a German perspective, the manufacturing sector has always been important. In my view, there is also considerable potential in the information technology (IT) sector." "German companies have traditionally focused on the Bengaluru region for IT-related activities, but they are now showing interest in expanding their operations to other parts of India as well," he said.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen had jointly announced the conclusion of negotiations for the India-EU Free Trade Agreement at the 16th India-EU Summit on January 27.

Hallier said trade between Germany and India has been growing steadily.

"Our bilateral trade grew by another six per cent last year. We are moving in the right direction and our economic ties are becoming stronger," he said.

According to the diplomat, nearly 2,000 German companies currently operate in India.

The largest concentration of German companies is in Pune, where the automobile sector is strong and several German original equipment manufacturers (OEMs) and their suppliers are present, he noted.

Referring to cooperation in the environment and energy sectors, Hallier said the Indo-German Green and Sustainable Development Partnership was already supporting projects in renewable and solar energy.

Highlighting ties between Madhya Pradesh and Germany, he said institutions such as the Indian Institute of Management (IIM), the Indian Institute of Technology (IIT) and the Indian Institute of Science Education and Research (IISER) in the state already maintain collaborations with German academic institutions.

"These relationships provide a strong foundation for future cooperation," he said.

Madhya Pradesh has shown considerable interest and achieved significant progress in the renewable energy sector, the diplomat pointed out.

"I believe there is potential for German companies to invest in this area in the state," he said.

The diplomat said the presence of German companies in the Indore region remained limited compared with Pune, but added that this also reflected the scope for future investments and industrial partnerships.

During his Madhya Pradesh tour, Hallier visited Indore and the adjoining industrial hub of Pithampur on June 10 and 11 to explore opportunities in information technology, tourism and other sectors, officials said.

Earlier, he met Chief Minister Mohan Yadav in Bhopal on June 9. PTI HWP LAL GK

India-EU free trade agreement seen as boosting Germany-India trade, manufacturing, IT and renewable energy cooperation. The proposed India-European Union Free Trade Agreement is expected to strengthen Germany-India trade relations and create additional opportunities for German companies to expand their presence in India. The focus includes manufacturing and information technology, with interest extending beyond established hubs such as Pune and Bengaluru to other regions of the country. Cooperation is also described in the fields of renewable energy, solar energy, environment and sustainable development, supported by the Indo-German Green and Sustainable Development Partnership.