Negotiators from India and the European Union commenced discussions on Monday to tackle outstanding issues in the proposed free trade agreement as the deadline for finalizing the deal draws near, according to the Commerce Ministry.
An EU delegation is present in India from November 3 to 7 to engage in talks with Indian officials regarding the proposed FTA.
The discussions throughout the week will focus on critical areas such as trade in goods and services, rules of origin, and various technical and institutional matters.
“The engagements are intended to address significant unresolved issues and progress the agreement towards a balanced and equitable framework that benefits both parties,” the ministry stated in a release.
This visit follows Union Minister of Commerce and Industry Piyush Goyal’s official trip to Brussels (October 27-28, 2025), where he engaged in forward-looking discussions with Maros Sefcovic, the European Commissioner for Trade and Economic Security.
“These consultations reaffirm the commitment of both parties to enhance engagement and facilitate a comprehensive trade agreement,” it added.
As part of the visit, Sabine Weyand, Director-General for Trade at the European Commission (EU DG Trade), will be in New Delhi on November 5-6 for high-level discussions with India’s Commerce Secretary Rajesh Aggarwal on essential technical and policy matters.
Issues requiring resolution include steel, automobiles, and the EU’s carbon tax.
India has also advocated for the resolution of both tariff and non-tariff barriers in the agreement, in addition to establishing transparent and predictable regulatory frameworks to enhance bilateral trade.
The EU has introduced regulations such as CBAM and EUDR (Deforestation Regulation), which have faced strong opposition from India.
Under CBAM, Indian exports of steel, aluminum, and cement to the EU may encounter tariffs ranging from 20-35 percent.
India has stressed the importance of preferential treatment for its key demands, particularly concerning labor-intensive sectors.
Engagements between the two parties have risen as they have opted to finalize negotiations by December.
In June 2022, India and the EU bloc recommenced discussions for a comprehensive Free Trade Agreement (FTA), an investment protection accord, and a treaty on geographical indications after a hiatus of more than eight years. The negotiations were halted in 2013 due to disagreements regarding the extent of market liberalization.
India’s bilateral trade in goods with the EU reached USD 136.53 billion in 2024-25, comprising exports valued at USD 75.85 billion and imports amounting to USD 60.68 billion, thereby establishing it as the largest trading partner in goods.
The EU market represents approximately 17 percent of India’s total exports, while the bloc’s exports to India account for 9 percent of its overall international shipments.
In addition to substantial duty reductions on automobiles and medical devices, the EU seeks tax cuts on other products such as wine, spirits, meat, poultry, and a robust intellectual property framework.
Exports of Indian goods to the EU, including ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, could become more competitive if the agreement is successfully concluded.
