India, EU race to resolve sticking points in proposed free trade agreement

India and the European Union on Monday held discussions on outstanding issues in the proposed free trade agreement as Commerce and Industry Minister Piyush Goyal met EU Trade Commissioner Maros Sefcovic for a fresh round of talks.

Sefcovic is leading a delegation of senior EU officials in New Delhi for what he described in a social media post as “a two-day marathon of meetings” with Goyal to advance trade and investment negotiations. Both sides are aiming to conclude the long-pending pact at the earliest.

After the meeting, Goyal said in a social media post: “Held a productive meeting with EU Trade and Economic Security Commissioner, Mr. @MarosSefcovic. We discussed the progress on the India–EU FTA and explored ways to resolve the issues to further advance the negotiations.” He added that he looked forward to continued cooperation towards a mutually beneficial agreement.

The EU team includes Directorate-General for Trade Sabine Weyand, EU Ambassador to India Herve Delphin, Chief Negotiator Christophe Kiener, and Petros Sourmelis, Head of the Trade Section at the EU Delegation to India.

Key differences that remain to be settled include issues related to steel, carbon tax, automobiles and non-tariff barriers.

India and the 27-nation EU bloc resumed negotiations in June 2022 after an eight-year pause. Talks had stalled in 2013 over disagreements on market access. The current negotiations cover 23 policy areas, including trade in goods and services, investment, intellectual property rights, geographical indications, rules of origin, customs and trade facilitation, government procurement and dispute settlement.

India’s bilateral trade in goods with the EU stood at USD 136.53 billion in 2024-25, with exports worth USD 75.85 billion and imports at USD 60.68 billion, making the EU India’s largest trading partner for goods. The bloc accounts for about 17 per cent of India’s total exports, while its exports to India represent 9 per cent of EU overseas shipments.

The EU has sought significant duty cuts in sectors such as automobiles and medical devices, along with tax reductions on wine, spirits, meat and poultry, and a stronger intellectual property framework. For India, a successful pact could make key exports — including readymade garments, pharmaceuticals, steel, petroleum products and electrical machinery — more competitive in the EU market.

(With inputs from agencies)