India And EU Resume Free Trade Talks In Push For 2025 Agreement

India and the European Union (EU) have resumed negotiations on their long-awaited Free Trade Agreement (FTA), with the latest round of discussions beginning on Monday in New Delhi and scheduled to continue until 16 May.

A senior official confirmed the talks mark a crucial step towards concluding the first phase of the agreement.

In preparation, Commerce Secretary Sunil Barthwal chaired a review meeting with senior officials, signalling New Delhi’s intent to push forward on key unresolved issues.

The resumption of talks follows a strong political push from both sides to accelerate progress.

Diverging Demands On Tariffs And Market Access

At the heart of the negotiations lie sharp differences over tariffs and market access.

The EU continues to press India to reduce duties on goods such as cars, wine, whiskey, and agricultural products.

Conversely, India seeks greater access to the European market for its pharmaceuticals, textiles, and apparel.

These longstanding differences have stalled the FTA for years, despite steadily growing trade volumes.

However, both sides now appear increasingly committed to finding middle ground.

Strong Trade Ties Despite Deadlock

The EU stands as one of India’s largest trading partners, accounting for €124 billion in goods trade in 2023, which represented 12.2% of India’s total trade.

Meanwhile, trade in services between the two partners nearly doubled from 2020 levels, reaching €60 billion last year with digital services making up one-third of that volume, according to the World Economic Forum.

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Over the past decade, bilateral trade has expanded by approximately 90%, reinforcing the economic case for a comprehensive trade agreement.

Ministerial Dialogue Reinforces Commitment

India’s Commerce and Industry Minister Piyush Goyal met with European Commissioner for Trade and Economic Security Maros Sefcovic in Brussels on 1 May to reaffirm both sides’ ambition to conclude the FTA by the end of 2025.

“In my highly productive dialogue with Commissioner Sefcovic, we reaffirmed our shared commitment to concluding the India–EU FTA negotiations by 2025,” Goyal stated after the meeting.

He added, “Our focus remains on enhancing market access, promoting trusted and diversified supply chains, and strengthening our economic partnership.”

Goyal also highlighted the importance of innovation, investment, mobility, and competitiveness in shaping a future-oriented agreement that fosters sustainable growth.

Strategic Backing From Top Leadership

This renewed momentum follows strategic direction set by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the EU College of Commissioners’ landmark visit to New Delhi in February 2025.

Both India and the EU, under their leadership, remain committed to building a mutually beneficial, balanced, and strategic trade partnership that supports economic resilience, inclusive growth, and sustainable development, the official statement said.

A Pivotal Moment For India-EU Trade Relations

With the next few rounds of negotiation expected to focus on resolving long-standing hurdles pragmatically, the current phase could prove pivotal.

The high-level engagement and public declarations of commitment suggest that both India and the EU are now determined to move past historical obstacles and deliver a meaningful, forward-looking trade agreement.