Amid US reciprocal tariffs, Austria tells Sitharaman it seeks deeper economic ties with India

New Delhi: US trade policies are hurting European economies, making it vital to deepen innovation-led partnerships with fast-growing economies like India, Austrian finance minister Markus Marterbauer said on Friday.

The statement came after Marterbauer and state secretary in the finance ministry Barbara Eibinger-Miedl met visiting finance minister Nirmala Sitharaman in Vienna to discuss strengthening economic and financial cooperation between the two countries.

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"The customs and trade policy of the USA is having a negative impact on the European and Austrian economies. This makes it all the more important to strengthen economic cooperation with all partner countries and promote innovation-driven collaboration," Marterbauer said.

"India is the fastest growing economy of all G20 countries with a forecast GDP growth of over six per cent. If trade takes place under fair and sustainable conditions, both partners will benefit," he added.

Sitharaman’s visit to Austria immediately follows one to the UK and is aimed at deepening bilateral ties through high-level dialogues and exploring new avenues for collaboration. 

Sitharaman will visit the US from 21 to 26 April.

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The Austrian finance ministry said that the European country, as an export-driven economy, remains committed to global trade rules and is seen as a reliable partner due to its geopolitical position, economic strength, and historical ties.

"Cooperation and trade relations with economies such as India are of great importance for our location," added Eibinger-Miedl.

"The exchange with Finance Minister Sitharaman underlines the great potential of closer cooperation between Austria and India—especially in the sectors of digital and innovative financial technologies," she added.

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Sitharaman also met Austrian Federal Chancellor Karl Nehammer and conveyed greetings from Prime Minister Narendra Modi. Both leaders reaffirmed their commitment to deepening cooperation in investment, trade, fintech, and people-to-people ties, the Austrian finance ministry said.

Merchandise trade between India and Austria stood at about $2 billion in 2023-24, which includes exports worth $1.14 billion and imports worth $922 million.

US reciprocal tariffs have disrupted global trade, hurting export-dependent economies and indirectly impacting through slowing global demand.