India’s Finance Minister Visits Vienna to Intensify Trade and Economic Partnership – Vindobona.org #IndiaFinance

Last year, Austria and India celebrated 75 years of diplomatic relations – a milestone that is now being built upon with new priorities. “India is one of Austria’s most important trading partners outside the EU,” emphasized Foreign Minister Meinl-Reisinger. “We want to further deepen this partnership based on common interests and values – bilaterally, in Europe, and multilaterally.”

The bilateral trade volume amounted to around 2.8 billion euros in 2024. More than 150 Austrian companies are now active in India – for example in the fields of mechanical engineering, environmental technologies, and transport infrastructure. At the same time, Indian companies are increasingly recognizing Austria’s importance as a gateway to Central Europe.

Innovation as a driver of cooperation

A key topic during the visit was innovation-driven cooperation. Minister Sitharaman emphasized the enormous potential of greater cooperation in the areas of green technologies, hydrogen, electromobility, the semiconductor industry, and digital infrastructure. Austrian companies were expressly invited to become more involved in India.

“I highlighted the emerging opportunities in sectors such as green hydrogen, digital public infrastructure, and e-mobility,” Sitharaman said at the India-Austria Business Roundtable. “India is an excellent access point to Asia and the Global South.”

Austria’s State Secretary Eibinger-Miedl emphasized that innovation not only enables growth, but also sustainable development. The aim is to jointly create framework conditions that open up new market opportunities and strengthen the competitiveness of both countries – in particular through stronger cooperation in the fintech sector and with start-ups.

Geopolitical context: Europe is looking for new partners

Austria’s Finance Minister Markus Marterbauer pointed out the challenges posed by U.S. trade policy: “The U.S. customs and trade policy is a burden on the European and Austrian economies. This makes it all the more important to strengthen economic cooperation with reliable partner countries such as India.”

India is currently the fastest growing economy in the G20 – with a forecast growth rate of over six percent in 2025. For Austria as an export-oriented economy, the strategic opening towards Asia is therefore not only an economic policy necessity, but also a geopolitical imperative.

Skilled workers, start-ups, and a shared digital ecosystem

Another focus was the mobility of skilled workers and talent. Austria is planning to significantly increase the number of Red-White-Red Cards for Indian skilled workers – particularly in the IT sector. At the same time, the desire was expressed to integrate India more closely into the Global Incubator Network Austria.

Both India and Austria have flourishing start-up ecosystems: India has more than 110 unicorns, while Austria wants to score points with targeted promotion of deep-tech and green-tech start-ups. The political leadership of both countries sees great potential for bilateral innovation partnerships in this convergence.

EU-India free trade agreement as a goal

The European context was also part of the talks: Minister Meinl-Reisinger spoke out in favor of a rapid agreement on the planned EU-India free trade agreement, which has been under negotiation since 2007. The EU and India are aiming to reach an agreement before the end of this year – an ambitious goal, but one that seems more urgent than ever in light of the geopolitical shifts.

“Especially in challenging times like these, it is crucial to focus on close partnerships – based on common rules and an open, partnership-based dialog,” said Meinl-Reisinger.

Together for a multilateral future

Nirmala Sitharaman’s visit to Vienna not only underscores India’s strategic importance for Austria but also the two countries’ shared aspiration for an open, rules-based world order. The economic, technological, and social potential of a close partnership seems almost unlimited – provided that both sides stay on course.

Looking ahead to the Austrian Federal Economic Chamber’s Export Day on June 3, 2025, which will focus on “India”, one thing is clear: relations between Vienna and New Delhi are about to enter a new chapter – one that not only focuses on economic interests, but also on shared values and visions.

Austrian MFA

BMF

Indian Ministry of Finance