Nirmala Sitharaman in Munich; contains important bilateral, highlights investment opportunities

Finance Minister Nirmala Sitharaman, during her ongoing visit, met European Central Bank (ECB) President Christine Lagarde in Munich, Germany, along with a number of other key dignitaries. Both leaders welcomed the finalization of the Free Trade Agreement (FTA) between India and the European Union in January 2026.

The Union Finance Minister underlined the financial role that the ECB can play in facilitating trade under the EU-India Free Trade Agreement. Ms Sitharaman also said that through the Union Budgets 2025-26 and 2026-27, India will allow EU banks to open 15 branches in four years under the India-EU Free Trade Agreement.

At another meeting, Ms Sitharaman met Vera Songwe, Chairman and Founder of the Liquidity and Sustainability Facility. Discussions focused on global capital markets and structural challenges for emerging economies, especially regarding fiscal space against the backdrop of an ever-changing geopolitical environment. The Union Finance Minister also met with Brigitte Haas, Prime Minister of Liechtenstein, and Alois Philipp Maria, HDH Hereditary Prince Alois of Liechtenstein.

The leaders discussed ongoing investments by Liechtenstein-based companies in India and further scaling up partnerships in manufacturing, eco-friendly technology, agriculture-related equipment and climate change. Sitharaman briefed them on investment opportunities through the National Investment and Infrastructure Fund (NIIF), the International Financial Services Centers Authority (IFSCA) as the financial gateway to India, and the broader prospects within the Indian manufacturing sector. Ms 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 ties, especially in defense, trade and technology.

Mr Klingbeil described the FTA as a major step for trade and investment in India, with a particular emphasis on bilateral development cooperation and metro rail expansion projects. Highlighting the success of India’s digital payment systems, the Finance Minister expressed India’s willingness to share best practices in its digital public infrastructure and digital stack with Germany. In a separate meeting, Ms Sitharaman met Eric Beisswenger, the Bavarian Minister for European and International Affairs.

In light of the recent visit of the German Chancellor to India in January 2026, both leaders highlighted the deepening of the bilateral partnership between the two countries. They discussed the recently concluded Free Trade Agreement between India and the EU and explored opportunities for climate finance through green and sustainable partnerships. The exchange of best practices in the recycling industry was also discussed. Underscoring India’s focus on skills, the Finance Minister highlighted the Union Budget 2026-2027 announcements, especially in healthcare.

Ms Sitharaman also met Oliver Zipse, Chairman of the Board of Directors of BMW AG. The discussions focused on the opening up of the Indian economy in light of the recent reforms, with an 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 Auto sectors, with a special focus on energy efficiency, electric vehicles and battery infrastructure.

During her visit to Munich, the Union Finance Minister will participate in the Munich Security Conference roundtable and key panel discussions. On the sidelines of the conference, she is engaged in further bilateral meetings with ministers, colleagues from different countries and heads of multilateral organizations.