Berlin, October 2026. TSMC was one of around 100 Indian businesses and startups in the FICCI delegation that accompanied Union Minister of Commerce & Industry Shri Piyush Goyal to Germany. In four days of roundtables with German industry, one subject came up more than any other: the India–EU Free Trade Agreement, and what it changes for German companies looking for manufacturing partners in India.

TSMC in Berlin

The delegation’s programme ran from 21 to 24 October:

• Berlin Global Dialogue at ESMT Berlin. Minister Goyal joined a panel on new economic alliances.

• India–Germany Business Roundtable. Co-chaired by Minister Goyal and Katherina Reiche, Germany’s Federal Minister for Economic Affairs and Energy, and organised with the German Council on Foreign Relations (DGAP) and the Asia-Pacific Committee of German Business (APA).

• Business leaders’ roundtable hosted by ESMT.

• Sessions with the Federation of German Industries (BDI) and sector roundtables with German CEOs.

• A dinner hosted by the Ambassador of India.

For TSMC, the week was about two things: hearing what German manufacturers need from Indian suppliers, and showing them what one Indian works can deliver from drawing to dispatch.

The agreement in brief

India and the European Union concluded negotiations on 27 January 2026, almost two decades after talks began.

• EU side: the EU will eliminate tariffs on more than 90 per cent of tariff lines.

• India side: India will eliminate tariffs on 86 per cent of tariff lines, covering about 93 per cent of trade by value.

• Timeline: in September 2026 the European Commission sent the agreement to the Council for signature. Signing is expected later this year, and entry into force is targeted for 2027 once both sides ratify it.

The agreement is not yet in force, but German companies are already planning around it.

Five ways the FTA opens doors for German businesses

1. A lower landed cost for parts made in India

With EU duties falling to zero on the large majority of tariff lines, components and assemblies made in India become cheaper to bring into Germany. German buyers can then compare Indian suppliers directly with European ones on price.

2. Certainty that supports long-term supply contracts

German companies rarely move a supply chain for a one-year advantage. A binding agreement with fixed tariff schedules and simpler customs procedures gives buyers the predictability they need to qualify a new supplier and sign a multi-year contract.

3. A second source that isn’t China

In Berlin, Minister Goyal put it this way: German companies need diversified supply chains, skilled talent and access to a large market. The Kiel Institute for the World Economy describes the agreement as a tool for strategic diversification, shifting part of Europe’s sourcing away from dependence on China. India offers scale, engineering depth and a democratic partner on the same side of that equation.

4. German machines in Indian factories, and better parts back to Germany

The agreement works in both directions. India will remove most of its duties on European machinery, which today run as high as 44 per cent. Indian manufacturers like TSMC already invest in German equipment; our sheet line runs on a TRUMPF TruLaser 1030. Cheaper access to German technology means Indian suppliers can build to German standards more economically, and German buyers benefit from that quality.

5. A framework for sustainable trade

The agreement commits both sides to the Paris Agreement and to workers’ rights. It also includes a dedicated annexure on the EU’s Carbon Border Adjustment Mechanism (CBAM). That annexure provides for cooperation on carbon pricing and emissions verification.

CBAM’s definitive phase began in January 2026, and it is due to extend to downstream products in 2028. From then on, German importers will need reliable data on how the steel and aluminium in their parts was made. Suppliers who can document their processes will have the advantage.

What this means for a supplier like TSMC

In Berlin, Minister Goyal urged Indian exporters to compete on quality, compliance and reliability, and named MSMEs as a key beneficiary of the agreement. That is the brief we work to.

TSMC, The Sustainable Manufacturing Company, runs sixteen processes under one roof in Aligarh:

• Cutting: TRUMPF TruLaser 1030 for sheet and a Penta laser for tube

• Joining: MIG, pulsed MIG, DNE Bystronic laser and robotic welding

• Machining: FANUC CNC milling and turning

• Forming: CNC bending and hydraulic press

• Casting and forging: sand casting in all metals, aluminium and zinc pressure die-casting, hand and machine forging

• Finishing: shot blasting, polishing and PVD, a 65 m powder-coating line, galvanising

• Assembly and export: an 8,000 sq ft sub-assembly area, with packing and palletising for export from Aligarh

For a German buyer, that means one supplier and one point of accountability for a part, instead of five subcontractors and five hand-offs.