Negotiators from India and the European Union started fresh discussions on Monday to resolve pending issues in the proposed free trade agreement (FTA). The Commerce Ministry said both sides aim to complete the deal soon.
An EU team is in India from November 3 to 7 for meetings with officials. “The engagements aim to resolve key outstanding issues and advance the agreement toward a balanced and equitable framework that benefits both sides,” the ministry said.
This round follows Commerce Minister Piyush Goyal’s visit to Brussels on October 27-28, where he met Maros Sefcovic, the European Commissioner for Trade and Economic Security.
Focus Areas of Discussion
The talks cover trade in goods and services, rules of origin, and other technical matters. “These consultations reaffirm the commitment of both sides to intensify engagement and facilitate a comprehensive trade agreement,” the ministry added.
Sabine Weyand, Director-General for Trade at the European Commission, will visit New Delhi on November 5-6. She will meet Commerce Secretary Rajesh Aggarwal to discuss key technical and policy issues.
Major Issues
The two sides are trying to settle differences over steel, automobiles, and the EU’s carbon tax. India has asked for the removal of tariff and non-tariff barriers and wants a transparent and predictable regulatory system.
India has raised concerns over the EU’s new trade rules — the Carbon Border Adjustment Mechanism (CBAM) and the EU Deforestation Regulation (EUDR). Under CBAM, Indian exports of steel, aluminium, and cement may face tariffs of 20–35 per cent.
India also wants preferential treatment for labour-intensive sectors, including textiles and leather.
Push to Conclude Talks by December
Both sides want to finish negotiations by December 2025. Talks have gained pace as the deadline nears. India and the EU resumed FTA discussions in June 2022 after an eight-year gap. Earlier talks, launched in 2007, were halted in 2013 due to disagreements on market access.
In 2024–25, trade in goods between India and the EU reached USD 136.53 billion. India exported goods worth USD 75.85 billion and imported USD 60.68 billion. The EU is India’s largest trading partner, accounting for 17 per cent of India’s exports, while India represents 9 per cent of EU exports.
What Both Sides Want
The EU seeks duty cuts in automobiles, medical devices, wine, spirits, and meat. It also wants a stronger intellectual property system.
India hopes the deal will make its exports—such as garments, pharmaceuticals, steel, petroleum products, and electrical machinery—more competitive in the European market.