India has reaffirmed its intention to conclude a long-pending free trade agreement (FTA) with the European Union at the earliest possible opportunity, following another round of negotiations that indicate the year-end target may slip. The update came after Indian Commerce Minister Piyush Goyal met an EU delegation led by European Commissioner for Trade and Economic Security Maroš Šefčovič on Monday.
Both sides have been accelerating efforts to secure a broad trade pact after European Commission President Ursula von der Leyen and Prime Minister Narendra Modi agreed earlier this year to fast-track negotiations. Talks relaunched in 2022 have gained momentum in part due to global trade shifts triggered by tariff increases imposed by former US President Donald Trump. In recent years, Brussels has concluded deals with Mexico and Indonesia and has intensified engagements with India.
Officials noted that the agreement, once implemented, could provide a significant boost to India-EU trade flows, which reached US $ 139.75 billion in 2024, with the balance in India’s favour. However, they acknowledged that several contentious issues remain.
One official with knowledge of the negotiations said progress had been inconsistent, with substantial gaps persisting on tariffs, market access and the enforceability of sustainability commitments. An industry source added that matters concerning steel, automobiles, carbon levies and other EU regulatory requirements continued to require detailed discussion due to sensitivities on both sides.
According to officials, the EU has been pushing for steep tariff reductions on cars, medical devices, wine, spirits and meat, in addition to stronger intellectual property protections. India, meanwhile, is seeking duty-free access for labour-intensive products, like textiles and garments and faster recognition of its expanding automotive and electronics sectors. Talks on investment protection and geographical indications are also under way in parallel.
The FTA currently spans 23 chapters, with 11 chapters concluded in the most recent round of negotiations in Brussels, officials said.
