India and European Union (EU) reiterated their commitment to conclude a complete free trade agreement (ALE) by the end of 2025, aimed at redefining their strategic partnership in trade and investment, the Ministry of Commerce announced on Friday.
The renewed promise followed a meeting between the Minister of Commerce Piyush Goyal and the European Commissioner for Trade and Economic Safety Maroš Šefčovič in Brussels.
Discussions focus on progress
Officials have described the India-EU talks as a turning point, emphasizing the read of the world’s commercial challenges and the acceleration of the pace of the ALE negotiations.
This diplomatic thrust aligns with the broader objective of India to accelerate several key trade agreements in a 90 -day window, caused by a break in reciprocal tariff actions announced by US President Donald Trump.
This break, in fact, until July 8, encouraged India to accelerate talks with the main partners such as the EU and the United Kingdom in order to guarantee market access before global commercial conditions become less favorable, according to reports.
The last momentum is based on the February visit to India by the college of EU commissioners, where Prime Minister Narendra Modi and the president of the European Commission Ursula von der Leyen expressed a shared intention to deepen the bilateral links.
Since then, the two parties have committed to monthly negotiation balls and ongoing virtual discussions. The next round in person is scheduled for May 12 to 16 in New Delhi.
India-Ue Talks
Taking on social networks, Goyal said: “In my highly productive dialogue with EU Commissioner Maroš Šefčovič, we reaffirmed our common goal of concluding the Indian-EU FTA by the end of 2025. We are working to improve market access, strengthen reliable supply chains and deepen our economic partnership.”
He added that discussions also included the increase in innovation, investment, competitiveness and mobility of the workforce, all considered vital elements for a “ready for the future” agreement.
While India and the EU consider that commercial agreement as mutual advantageous, India has stressed the importance of fighting non -tariff obstacles (TNT) in parallel with tariff reductions.
“Regulatory systems must be inclusive and balanced,” said Indian negotiators, noting that progress on NTBs is essential to reach significant access to the market.
The discussions would have advanced in several key areas, such as digital trade, the resilience of the supply chain and regulatory cooperation. The agreement should support India’s ambition to become a world center for manufacturing and exporting by 2047.
For the EU, a deeper economic partnership with India offers a strategic path to diversify trade links and reduce dependence on specific regions.
FTA proposed
The proposed ALE aims to facilitate innovation, to improve industrial competitiveness and to promote balanced commercial practices. The movement of professionals and the increase in investment flows are also essential to these objectives.
Indian officials, speaking on condition of anonymity, suggested that the ALE could be among the most ambitious trade agreements that India has ever signed.
In case of success, this would mark a turning point in India – EU relations, overcoming the years of negotiations at neutral and unlocking the strategic advantages for both parties.
However, challenges remain, in particular disputed areas such as intellectual property rights, environmental regulations and access to the agricultural sector and services.
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