Kamal Ghorui
MUNICH: Finance Minister Nirmala Sitharaman met Christine Lagarde, President of the European Central Bank (ECB), in Munich, Germany, among several other key dignitaries, during her ongoing visit.Both leaders were pleased to note the finalisation of the India and the European Union Free Trade Agreement (FTA) in January 2026. The Union Finance Minister underlined the financial role the ECB can play in facilitating trade under the EU-India FTA deal.Sitharaman also mentioned that through the Union Budgets 2025-26 and 2026-27, India will allow EU banks to open up to 15 branches over four years under the India-EU FTA framework.In another engagement, Sitharaman met Vera Songwe, Chair and Founder of the Liquidity and Sustainability Facility. The discussions focused on global capital markets and structural challenges for emerging economies, particularly with regard to fiscal space in the backdrop of an ever-shifting geopolitical environment.The Union Finance Minister also met Brigitte Haas, Prime Minister of Liechtenstein, and Alois Philipp Maria, H.S.H. Hereditary Prince Alois of Liechtenstein. The leaders discussed ongoing investments by Liechtenstein-based companies in India and scaling up partnerships further in the fields of manufacturing, environment-friendly technology, agriculture-related equipment, and climate change.Sitharaman apprised them of investment opportunities through the National Investment and Infrastructure Fund (NIIF), the International Financial Services Centres Authority (IFSCA) as the financial gateway to India, and the broader prospects within India’s manufacturing sector.Sitharaman also met Lars Klingbeil, Vice Chancellor and Federal Minister of Finance of Germany.The two leaders discussed the January meeting between Prime Minister Narendra Modi and Friedrich Merz in India, which strengthened bilateral relations, particularly in defence, trade, and technology.Klingbeil described the Free Trade Agreement as a big step for trade and investments in India, with particular emphasis on bilateral development cooperation and metro rail expansion projects.The Finance Minister highlighted the success of India’s digital payment systems and expressed India’s willingness to share best practices on its digital public infrastructure and digital stack with Germany.In a separate meeting, Sitharaman met Eric Beisswenger, Bavarian Minister for European and International Affairs. In light of the German Chancellor’s recent visit to India in January 2026, both leaders noted the deepening bilateral partnership between the two nations.They discussed the recently concluded India-EU FTA and explored avenues for climate finance through green and sustainable partnerships. The exchange of best practices in recycling industries was also discussed. The Finance Minister underlined India’s focus on skilling and highlighted the Union Budget 2026-27 announcements, particularly in the healthcare sector.Sitharaman also met Oliver Zipse, Chairman of the Board of Management, BMW AG. Discussions focused on the opening up of India’s economy in light of recent reforms, with emphasis on policy continuity and stability.The Finance Minister highlighted Prime Minister Narendra Modi’s Viksit Bharat vision for 2047, supported by reforms in GST, Customs, manufacturing, and Production-Linked Incentive (PLI) schemes in the sunrise and automobile sectors, with special focus on energy efficiency, electric vehicles, and battery infrastructure.During her visit to Munich, the Union Finance Minister participates in the high-level Munich Security Conference Roundtable and key panel discussions.On the sidelines of the Conference, she engages in further bilateral meetings with ministers, counterparts from various countries, and heads of multilateral organisations.
