India and the European Union (EU) resumed negotiations on September 8 for a long-pending free trade agreement (FTA), an official confirmed.
This marks the 14th round of talks, following the previous round held in Brussels. European Commissioner for Trade Maroš Šefčovič is scheduled to visit India on September 12 to review progress with Commerce and Industry Minister Piyush Goyal, as both sides aim to finalize the deal by the end of this year.
Negotiations, which stalled in 2013 over market access issues, were revived in June 2022 to work toward a comprehensive FTA, an investment protection pact, and an agreement on geographical indications. In February this year, Prime Minister Narendra Modi and European Commission President Ursula von der Leyen agreed to push for sealing the trade pact within 2025.
The EU is seeking significant tariff cuts on automobiles and medical devices, along with reduced taxes on products like wine, spirits, meat, and poultry. It is also pushing for stronger intellectual property protections. A successful pact could make Indian exports including ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery more competitive in the European market.
The wide-ranging trade discussions span 23 policy areas, including goods trade, trade remedies, customs and facilitation, competition, dispute settlement, intellectual property rights, and sustainable development.
Bilateral goods trade between India and the EU reached USD 136.53 billion in 2024–25, with India exporting USD 75.85 billion worth of goods and importing USD 60.68 billion. The EU accounts for roughly 17% of India’s total exports, while exports from the EU to India represent about 9% of its overall shipments. Additionally, trade in services between the two partners stood at USD 51.45 billion in 2023.
