India, EU Make Significant Progress in Free Trade Agreement Negotiations

Strategic Insights -

India and the European Union have concluded negotiations on 10 out of 20 chapters of the proposed free trade agreement (FTA), with 4-5 more chapters settled in principle. The two sides aim to conclude the FTA negotiations by December, with trade commissioner MaroŠefcovic set to visit India in late November. Commerce and Industry Minister Piyush Goyal said both sides are moving ahead, recognizing mutual sensitivities and strengths, as they work to bridge gaps in the remaining areas of the pact.

Key Takeaways:

  • The negotiations have made significant progress, with 10 out of 20 chapters concluded and 4-5 more settled in principle.
  • The remaining areas of the pact include sensitive issues, such as trade barriers on steel and automobiles, which will be discussed in the next meeting.
  • The EU trade commissioner, MaroŠefcovic, is set to visit India in late November, which is expected to bring a further breakthrough in the negotiations.
  • India and the EU are also holding separate negotiations for an investment protection agreement and an agreement on geographical indications.
  • The FTA negotiations are expected to be concluded by December, although there are no fixed deadlines.

Statistics:

  • The trade in goods between India and the EU was $136.53 billion in FY25.
  • The proposed FTA aims to increase bilateral trade and create a more transparent and predictable regulatory framework.
  • 50% tariffs have been imposed by the US on India, which was flagged as an issue during a meeting between exporters and Commerce and Industry Minister Piyush Goyal.

Sources:

  • Commerce and Industry Minister Piyush Goyal's statement
  • Ministry of Commerce and Industry statement
  • Our Bureau report