India and the European Union are stepping up negotiations for a long-awaited Free Trade Agreement (FTA). An EU delegation led by Trade Commissioner Maroš Šefčovič and Agriculture Commissioner Christophe Hansen arrives in Delhi today for talks with Commerce and Industry Minister Piyush Goyal.
The visit comes amid the 13th round of negotiations, seen as pivotal to finalising the framework of a trade pact that has been in the making for over a decade. This week’s meetings carry renewed urgency as India recalibrates its external trade relationships in response to U.S. tariffs.
“The tariff escalation from the U.S. has made it clear that India needs to expand and stabilise its trade portfolio,” said a senior trade official. “The EU deal offers not just market access but long-term predictability.”
What’s On The Agenda
Negotiators have closed roughly two-thirds of the FTA’s chapters, including those related to digital trade, customs facilitation, dispute settlement and support for small and medium enterprises. However, several contentious areas remain, such as:
- Rules of origin
- Tariff concessions on dairy, wine, automobiles and medical devices
- Carbon Border Adjustment Mechanism (CBAM) compliance
- Intellectual property and investment protection standards
Officials hope for a resolution before the next round of talks in Brussels, slated for early October.
European Commission President Ursula von der Leyen, in her State of the Union address recently, said the EU was committed to concluding a “historic trade deal” with India before the year-end.
Prime Minister Narendra Modi has also been actively engaging with European leaders. In a phone conversation with Italian Prime Minister Giorgia Meloni, the two leaders have reaffirmed support for fast-tracking the FTA.
Germany has echoed similar support, with senior officials backing India’s concerns on regulatory standards and pressing for internal EU consensus on key aspects of the deal.
Beyond Trade
On September 17, the EU is expected to unveil a new strategic vision document outlining its long-term engagement with India across trade, climate, technology, defence and foreign policy. Multiple exchanges are scheduled in the coming months, including:
- Visit of the EU’s Political and Security Committee to New Delhi (October)
- India-EU Trade and Technology Council (TTC) meeting (November)
- Indo-Pacific Ministerial Forum in Delhi (November 20–21)
- Visit by EU High Representative for Foreign Affairs Kaja Kallas (expected in December or next year)
Why This Deal Matters
In 2024-25, India’s trade in goods with the EU stood at $136.5 billion, with another $51.4 billion in services. The EU accounts for about 17% of India’s total exports, making it India’s largest trading partner.
For the EU, the deal offers a pathway to a large, fast-growing market as it seeks to reduce overdependence on other regions. For India, it’s a strategic hedge amid trade friction with the U.S., and an opportunity to lock in access to advanced markets under predictable terms.
