EU, India Push To Conclude Free Trade Agreement By 2025

On Wednesday, European Union Ambassador to India Herve Delphin said that there is ‘strong political commitment’ from both sides to conclude the revamped India-EU Free Trade Agreement by the end of 2025.

Ambassador Delphin said, “Of the 23 chapters under discussion, 11 have already been closed. Important chapters still under negotiation include market access for cars, steel, some aspects of services and investment and technical barriers to trade.”

He further added, “No doubt, there is a strong political commitment to conclude the FTA negotiations by the end of the year.”

40-member EU negotiator team to visit Delhi

He stated that a 40-member EU negotiator team will visit Delhi this week to resolve the remaining issues.

Current bilateral goods trade stands at approximately USD 136 billion, making the EU India’s third-largest trading partner after the US and China.

Delphin emphasised that the agreement is WTO-compatible and not a zero-sum game.

He said that India and the EU together contribute 25 per cent of the world’s GDP and also account for 25 per cent of the global population, describing the partnership as a long-term strategic investment rather than a short-term portfolio play.

The ambassador said they are investing in the great potential of India because they also value India as a shaper of the future world order.

He revealed that Indians are the largest beneficiaries of the EU Blue Card scheme for skilled workers, with around 21,000 Indian professionals availing the facility.

The number of Indian migrants in the EU has risen tenfold since the 1990s to reach 8,20,500 by the end of 2023, reflecting growing interdependence.

“There’s been a tenfold increase in the number of Indian migrants in the EU since the 90s. So now it’s about 820,500 by the end of 2023, and I’m pretty sure if we add figures for 2024 and 25, we end up on the higher end. And the main drivers of this migration is employment and education” Herve Delphin said.

Mobility Framework Discussions

He also stated that India and the EU are in discussion for a comprehensive framework for mobility.

Launched in 2007 as the EU-India Broad-based Trade and Investment Agreement (BTIA), negotiations faltered in 2013 over contentious issues like tariffs on dairy and automobiles, and intellectual property rights.

High-level engagements revived the pact in June 2022, and it now aims to boost bilateral trade, currently valued at around USD 136 billion.

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