India, EU Free Trade Pact Edges Closer To Reality As Both Sides Aim To Conclude Deal By End-2025

The India-European Union Free Trade Agreement (FTA) is inching closer to conclusion, with both sides reaffirming their commitment to finalise the long-awaited pact by the end of 2025.

The renewed momentum follows Union Commerce and Industry Minister Piyush Goyal’s three-day visit to Brussels, where he held detailed discussions with European Commissioner for Trade and Economic Security Maroš Šefčovič.

According to the Ministry of Commerce and Industry, the talks held from 26 to 28 October were “productive and meaningful,” addressing key outstanding issues in the ongoing negotiations.

The discussions, the ministry said, reflected the depth of political trust between the two partners and their shared goal of achieving a balanced and equitable agreement that respects each other’s sensitivities and priorities.

"Both sides reaffirmed their shared commitment to conclude the India-EU FTA by the end of 2025, following the clear direction from Prime Minister Shri Narendra Modi and President of the European Commission Ms Ursula von der Leyen during the College of Commissioners’ visit to New Delhi in February 2025," the ministry said.

The proposed FTA is expected to strengthen trade and investment flows between India and the EU.

According to the ministry, India recognises the importance of ensuring that the FTA remains balanced in addressing both tariff and non-tariff barriers and creating transparent and predictable regulatory frameworks that accelerate trade for both partners in the coming years.

During the Brussels meeting, there was intensive engagement to explore possible landing zones on the outstanding issues, the ministry said.

India's concerns on non tariff measures and the new EU regulations were also discussed during the meeting.

During the negotiations, Goyal emphasised the need for preferential treatment for India’s key asks, particularly those with respect to labour-intensive sectors.

Both sides agreed to work closely to finalise the non-sensitive industrial tariff lines.

They also agreed that issues related to Steel, Auto, Carbon Border Adjustment Mechanism (CBAM), and other EU regulations still require further discussion, as these issues have higher sensitivities, the ministry said.

To advance the ongoing discussions, the EU technical team led by Director General for Trade will visit India next week with the objective of achieving a constructive conclusion based on the potential solutions identified during the Brussels negotiations.

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