New Delhi: India and the European Union have reaffirmed their commitment to conclude an ambitious free trade agreement (ALE) by the end of 2025, aimed at reshaping their strategic trade and investment partnership, the Ministry of Commerce said on Friday.
The Minister of Commerce, Piyush Goyal, met with the European Commissioner for Trade and Economic Safety Maros Sefcovic in Brussels for what civil servants have described as a prospective dialogue focused on the statement of global trade challenges and the acceleration of negotiations.
This renewed emergency is done in the context of the diplomatic thrust of India to conclude most of its current commercial transactions within a 90 -day window, triggered by the announcement by the American president Donald Trumop of reciprocal tariff increases. The break, which takes place until July 8, has prompted India to accelerate talks with key partners, including the United Kingdom and the EU, to guarantee market access before global commercial conditions are potentially used, because Mint reported on April 11.
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The momentum is based on the February visit of the college of EU commissioners in India, where Prime Minister Narendra Modi and the president of the European Commission Ursula von der Leyen have reported his intention to deepen the bilateral commitment. Since then, the two parties have undertaken to negotiate monthly rounds and regular virtual discussions. The next round should take place in New Delhi from 12 to 16 May.
In an article on social networks, Goyal said: “In my highly productive dialogue with EU Commissioner Maros Sefcovic today, we have reaffirmed our common commitment to conclude the negotiations of the Indian-EU free trade agreement at the end of 2025. While we are advancing in our negotiations, our emphasis is on the improvement of commercial access for companies.
He added that the two parties also discussed innovation, competitiveness and importance of investment flows and mobility in the formation of a “ready for the future” agreement.
While the two parties have described the FTA as mutually beneficial, India highlighted the need to treat non -tariff barriers (NTB) with the same gravity as the reduction in prices.
“Regulatory executives must be inclusive and proportionate,” said the India delegation alongside the EU, stressing that tangible progress on TNTs is essential to guarantee real market access and fair results.
The negotiators would have progressed in several areas, including digital trade and resilience of the supply chain. The agreement should support India’s ambition to emerge as a center for diversified production networks, aligned on its 2047 development objectives, noted the ministry.
For the EU, deeper trade links with India represent a strategic opportunity to reduce dependence on specific markets and to promote a balanced global trade. The proposed Ale aims to promote regulatory cooperation, stimulate innovation and stimulate industrial competitiveness on both sides. Investment flows and the movement of professionals are considered essential to reach this alignment.
At home, officials involved in the process declared on condition of anonymity that the agreement had the potential to become one of the most complete trade agreements in India to date. If it is concluded as planned, it would mark an important turning point in India -EU relations – transforming years of blocking in a shared strategic lever effect. But negotiators are still faced with difficult compromises, in particular around intellectual property rights, environmental standards and access to agriculture and services.
Translections are also shaped by sectoral requests.
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Mint reported on April 17 that the two parties explored the relief of the prices for Indian textile exports – a long -standing priority for New Delhi – while the EU is looking for service concessions on great value spirits, in particular whiskey.
Currently, India imposes prices up to 150% on EU alcoholic beverages, while the EU takes up to 14% from Indian textiles. On the other hand, the textile rival of India, Bangladesh, benefits from zero access to the European market under existing commercial preferences.
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