Negotiations for the proposed free trade agreement (FTA) between India and the European Union (EU) are making progress, although differences remain in areas such as steel, automobiles, and non-tariff barriers, a senior official told PTI on Monday.
Officials from India and the 27-member EU concluded the 14th round of discussions in Brussels last week. The five-day talks, which began on October 6, aimed to address pending issues related to trade in goods and services to expedite the agreement’s conclusion.
Key issues under discussion
“Talks are progressing well. There are issues which need resolution such as steel and automobiles. No major issue is pending in agri,” the official said.Commerce Secretary Rajesh Agrawal joined the negotiations in the final days to provide momentum. During his visit, he also met European Commission Director General for Trade Sabine Weyand for further discussions.
The proposed pact seeks to improve market access, simplify trade rules and strengthen investment protection between the two sides. However, differences persist over tariff reductions in sensitive sectors.
The EU has sought lower duties on automobiles, medical devices, wines, spirits, meat and poultry, and has called for a stronger intellectual property regime. India, on the other hand, is looking for easier access for its exports such as ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery.
Trade relationship and next steps
The FTA talks, covering 23 policy areas, include trade in goods and services, investment, technical barriers, customs facilitation, intellectual property rights and sustainable development.
In June 2022, India and the EU resumed negotiations for a comprehensive trade and investment agreement after a pause of over eight years. Talks had stalled in 2013 due to differences on the extent of market liberalisation.
India’s bilateral trade in goods with the EU stood at $136.53 billion in 2024–25, with exports worth $75.85 billion and imports worth $60.68 billion. The EU accounts for about 17 per cent of India’s total exports, while its exports to India represent 9 per cent of its global shipments.
In services, bilateral trade was estimated at $51.45 billion in 2023.
