India and the European Union are making significant progress in their ongoing negotiations for a comprehensive Free Trade Agreement (FTA), with both sides expressing strong optimism about reaching a balanced and future-ready deal.
Commerce and Industry Minister Piyush Goyal recently met with European Commissioner for Trade and Economic Security Maros Sefcovic in Brussels to assess the pace of discussions. Both leaders reaffirmed their commitment to conclude negotiations by the end of 2025, following a productive round of deliberations.
Sefcovic emphasized that the EU places high strategic value on its partnership with India and is determined to secure a commercially meaningful agreement that boosts market access and ensures regulatory alignment. He expressed confidence in achieving an outcome that will enhance business predictability and mutual growth.
Minister Goyal echoed the sentiment, stating that the negotiations have been intensive yet constructive, and reflect the shared goal of creating resilient and diversified supply chains. The FTA aims to enhance cooperation across 23 policy areas, including trade in goods and services, investment protection, intellectual property rights, and sustainable development.
The next round of talks is scheduled for May 12–16, with both sides focusing equally on tariff and non-tariff barriers to ensure equitable access for industries. Notably, the EU is seeking tariff reductions in sectors like automobiles, medical devices, wines, and spirits, while India aims to boost exports of garments, pharmaceuticals, steel, and electronics to the EU market.
Bilateral trade between India and the EU reached USD 137.41 billion in goods and USD 51.45 billion in services in 2023-24, making the EU India’s largest trading partner in goods. The FTA, once finalized, is expected to further deepen economic ties and drive sustainable, inclusive growth for both regions.