India, EU accelerate efforts for comprehensive trade pact
India and the European Union (EU) are intensifying talks to finalise a commercially meaningful free trade agreement (FTA) aimed at expanding market opportunities for businesses on both sides.
Commerce and Industry Minister Piyush Goyal is in Brussels this week to take stock of the negotiations and engage with European officials on the way forward for the proposed deal.
European Commissioner for Trade and Economic Security Maros Sefcovic welcomed Goyal, posting on X, “Glad to host Minister — and my friend — @PiyushGoyal. In today’s uncertain times, our businesses are looking for opportunity, access, and predictability. That’s exactly what we’re working to deliver: a commercially meaningful deal, opening up markets for goods and services.”
Goyal reaffirmed India’s commitment to the partnership. He said, “The mutual benefit of our peoples and businesses will be central to our efforts.”
Both sides are considering a phased negotiation process, a method India has previously adopted in its trade discussions with Australia and proposed for talks with the United States. This approach enables negotiators to quickly seal agreements in areas of consensus while setting aside more sensitive matters for future rounds.
To date, ten rounds of negotiations have been completed, with the next round scheduled for May 12.
The FTA discussions, revived in June 2022 after an eight-year break, had previously stalled in 2013 over disagreements on market access issues. The momentum picked up again after Prime Minister Narendra Modi and the European Commission President agreed on February 28 to work towards concluding the deal by the end of this year.
The agreement under discussion covers 23 chapters, ranging from Trade in Goods and Services, Investment, and Rules of Origin to Intellectual Property Rights, Government Procurement, and Sustainable Development.
Key demands from the EU include tariff cuts on automobiles, medical devices, wines, and spirits, along with stronger intellectual property protections. India, in turn, hopes to secure improved access for its exports, including textiles, pharmaceuticals, steel, petroleum products, and electrical machinery.
In 2023-24, trade in goods between India and the EU reached USD 137.41 billion, with India exporting goods worth USD 75.92 billion and importing USD 61.48 billion — positioning the EU as India’s largest trading partner in goods. The EU accounts for roughly 17 per cent of India’s total exports, while India makes up about 9 per cent of the EU’s total exports.
The bilateral services trade was valued at USD 51.45 billion in 2023.
Alongside the trade pact, India and the EU are also negotiating an investment protection agreement and a separate agreement on geographical indications (GIs), both aimed at deepening economic engagement and safeguarding mutual business interests.
