MC EXCLUSIVE India-EU FTA to trigger ‘second wave’ of European investment, create more jobs, says Airbus’ Westermeier

Airbus’ India & South Asia president and managing director Jürgen Westermeier.

• India-EU FTA expected to boost investments and job creation
• Deal includes tariff cuts and expanded market access for both sides
• Airbus sees AI as augmenting jobs, not causing mass losses

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The India-EU Free Trade Agreement (FTA), once implemented, will trigger a second wave of investments and business activities, Airbus’ India & South Asia president and managing director Jürgen Westermeier told Moneycontrol on February 18.

"More than 90 percent of EU businesses are in India. I expect that after the FTA, there will be more jobs created. We (European businesses) will do more direct FDI, and collaborate more directly," Westermeier said in an interview on the sidelines of India AI Impact Summit 2026.

Negotiations for the India–EU FTA were concluded on January 27, with implementation expected this year after legal vetting and approvals. The agreement provides wide-ranging tariff reductions, harmonised standards and lower non-tariff barriers.

India will eventually gain $75 billion in exports under the free trade agreement, with preferential access for over 99 percent of goods. The EU is expected to double its outbound shipments to India by 2032 due to tariff cuts or eliminations.

"We concluded the negotiation of EU-FTA a few backs back, on an excellent path of collaboration," said Westermeier. "India is already a significant market for EU businesses. They work here and like to invest here."

Airbus has a significant presence in India, with more than 3,600 employees. Supporting more than 15,000 jobs through its supply chain, Airbus contributes to India’s economic growth by sourcing over EUR 1 billion annually in components and services for global exports, the company’s website says.

On job losses due to AI, Westermeier said innovation always finds a way. "AI will augment people, and like in the past, you will not have the same job anymore," he said. "After industrial optimisation, the jobs we will still have will be more enriching , while AI supports us with less enriching jobs," he added.