India EU Trade Talks Gain Momentum Ahead of Key Negotiations

Maros Sefcovic, the European Commissioner for Trade, is set to arrive in New Delhi next week for a three-day visit, as discussions regarding a proposed Free Trade Agreement (FTA) between India and the European Union are reportedly making "rapid progress." This announcement came from Indian Trade Minister Piyush Goyal, who highlighted the advanced stage of the negotiations. The upcoming round of talks, also scheduled for next week, is deemed crucial for building consensus towards finalizing a deal by the end of the current year, a sentiment echoed by officials on both sides.

The report of significant advances in these long-running negotiations with the 27-nation European bloc follows closely on the heels of recent sharp hikes in U.S. tariffs on Indian goods. Trade talks for an India-EU free trade agreement, which had initially stalled for eight years, successfully resumed in 2021 and have been ongoing for the past three and a half years, according to Minister Goyal.

Key negotiation points involve specific demands from both parties. The European Union has been advocating for steep duty reductions on products such as vehicles, medical devices, wine, spirits, and dairy items. Conversely, India is pressing for enhanced market access for its significant exports, including textiles, pharmaceuticals, steel, and petroleum products, aiming to secure favorable terms for these critical sectors.

Economically, the European Union stands as India’s largest trading partner in goods, underscoring the importance of this agreement. Bilateral trade between the two entities reached a substantial $137.5 billion during the 2023/24 fiscal year, marking an impressive increase of nearly 90% over the last decade. This robust trade relationship provides a strong foundation for the ongoing FTA discussions.

Reinforcing the commitment to the timeline, European Commission President Ursula von der Leyen, following a phone call with Indian Prime Minister Narendra Modi, reiterated the EU's dedication to concluding negotiations by year-end. She emphasized on X that "To achieve this, progress is needed now." Beyond trade, von der Leyen also noted India's vital role in encouraging Russia to end the war in Ukraine and expressed the shared ambition for the EU and India to agree on a joint strategic agenda at a summit as early as 2026.