‘India is the place to be,’ says Chief of Chamber of European Business in India

European companies operating in India are highly optimistic about the impending EU-India Free Trade Agreement, with the president of the Federation of European Business in India (FEBI) declaring the deal is now in its decisive stage.

Jürgen Westermeier, President of FEBI, said the agreement would bring together the world’s two largest democracies in a major economic partnership. “I must say, I’m very positive that we are now in the final phase of ratifying the free trade agreement between the EU and India. This is 24 trillion US dollars. This is addressing 2 billion people. The two biggest democracies which are close with the values, are coming together to foster trade, to foster collaboration,” Westermeier told WION in an interview.

“So I’m very positive about what has already been achieved, and I’m looking forward to having it in place, because this will really create a win-win situation on both sides.” With nearly 6,000 European businesses already active in the Indian market, Westermeier painted a strongly positive picture of the investment climate.

“If you look at the world, there is no other place like India, where you can see the incredible growth which will happen in the next 20 years. So, being in India, being part of this growth which will be inevitable, is just positive. So India is the place to be,” he said.

He added that European firms are thriving. “European businesses are significantly growing now, having reached 6000 European businesses, and nearly all of them are making money, and nearly all of them expect better results, and nearly all of them want to invest more. So yes, it is very positive.”

Westermeier emphasised that Indian companies would benefit equally from the deal. “It is actually the same way. There is also a reduction of tariffs. And if you look at where the two economies are strong, they are extremely complementary. So automatically, when you lower the tariff barriers on both sides, create a win-win situation. It’s just perfect,” he said.

The comments FTA awaits passage in the European Parliament. Once ratified, the agreement is expected to further strengthen economic ties between India and the 27-nation European Union.

The European Union has released a new report showing that around 6,000 EU companies operating in India generated €186 billion in turnover in 2024, equivalent to about 5 per cent of India's GDP and nearly a quarter of its manufacturing sector.

Over the past decade, these firms have supported nearly 6 million jobs, contributed €23.5 billion in exports and €7 billion in taxes, while making cumulative investments of €218 billion between 2014 and 2024. The strongest presence is in Maharashtra, Karnataka, Delhi, Tamil Nadu and Haryana, which together host around 85 per cent of all EU firms.