India, EU to begin fresh round of FTA negotiations tomorrow
What's the story
Senior officials from India and the European Union (EU) will begin a fresh round of negotiations for a free trade agreement (FTA) on Monday. The talks, which are the 14th such round, will take place in Brussels over five days. Commerce and Industry Minister Piyush Goyal is optimistic that both sides will finalize the deal soon to boost bilateral trade and investment.
Strategic discussions
Goyal to meet EU trade commissioner in South Africa
Goyal is also expected to meet EU Trade Commissioner Maros Sefcovic in South Africa later this month. The meeting will be to review the progress of ongoing talks, with a deadline for concluding negotiations by December. Last month, Sefcovic and European Commission's Agriculture Commissioner Christophe Hansen were in India to assess the status of these discussions with Goyal.
Trade talks
India-EU FTA talks revived after 8 years
The India-EU FTA negotiations were revived in June 2022, after an eight-year hiatus. The talks had been stalled since 2013 over disagreements on market access. The EU is seeking major tariff reductions on automobiles and medical devices, as well as lower tariffs on other items such as wine, spirits, meat, and poultry products. It also wants a strong intellectual property regime in place.
Export advantage
Areas covered under the proposed trade deal
If the India-EU trade pact is finalized, exports of Indian goods such as ready-made garments, pharmaceuticals, steel products, petroleum products, and electrical machinery could become more competitive. The negotiations cover 23 policy areas or chapters including trade in goods and services, investment rules, sanitary measures for food safety and animal health. Other areas include technical barriers to trade (TBT), trade remedies (anti-dumping duties), and customs procedures among others.
Trade statistics
India's bilateral trade with EU
India's bilateral trade in goods with the EU stood at $136.53 billion in 2024-25, making it its largest trading partner for goods. The EU accounts for nearly 17% of India's total exports while its exports to India account for 9% of total shipments. Additionally, India-EU bilateral services trade was pegged at $51.45 billion in 2023, further highlighting the importance of these negotiations.