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Last week, Brussels hosted a new round of negotiations on the Free Trade Agreement (FTA) between the European Union and India. Under increasing pressure from the Trump administration’s tariff policies, both parties have revived this long-stalled initiative with renewed vigor. There is a visible determination in Brussels and New Delhi to conclude as quickly as possible. Yet the European Union’s climate policy and India’s skepticism towards it remain an obstacle. Despite these differences, officials on both sides maintain that the deal will be finalized before the end of the year, a step that could open a new chapter in EU-India relations.
The re-election of Donald Trump and his renewed desire to impose customs duties on foreign products have disrupted the dynamics of world trade. India, one of the countries hardest hit by American measures (see United States – India: “tough guys” in high-stakes negotiations), has responded with a vast diplomatic offensive since the beginning of 2025, seeking to diversify its partnerships. China was one of the first destinations for this new approach, signaling the beginning of a thaw between New Delhi and Beijing. compensate for potential economic losses. Thus, both sides found reason to resurrect the once-abandoned FTA – a project that had dragged on for years but now seemed of new relevance. Given that the agreement concerns the world’s second largest economy (the EU as a whole) and the fifth (India, but only if you count the EU as a whole, otherwise it is the fourth), its implications extend well beyond the bilateral sphere.
The idea of a comprehensive EU-India trade deal goes back almost two decades, in a very different geopolitical climate. The 2006 EU-India summit paved the way for negotiations, which began the following year at an operational level. The proposed agreement aimed to cover a wide range of issues, from trade in goods and services to mutual investments, customs, competition, intellectual property, sanitary and phytosanitary measures and sustainable development.
As ambitious as it was, the process quickly became bogged down in political and structural disagreements. India’s long-standing protectionism, exemplified by high tariffs on European cars, wine and food, has clashed with EU demands for greater market access. Meanwhile, New Delhi has been pushing for visa liberalization for Indian citizens; unacceptable for several Member States. Intellectual property rights, particularly pharmaceutical patents, have become another hot spot. In 2013, after years of impasse, negotiations ended.de facto suspended.
The rise of the BJP offered a glimmer of hope for a revival, but progress remained largely rhetorical – an exercise in “bureaucratic optimism”. Over time, human rights clauses proposed by some EU members have further complicated matters, turning an already difficult process into a diplomatic maze. Although the FTA has occasionally resurfaced at annual summits, concrete progress has remained elusive.
Geopolitical realignments triggered by Russia’s invasion of Ukraine in 2022 have renewed interest in the deal. European companies withdrawing from Russia began to view India as a new frontier for growth, while India – keen not to alienate Moscow – sought to balance its position by deepening ties with Brussels. Yet the momentum proved insufficient for a real breakthrough.
It was Trump’s tariff agenda that finally spurred both sides into action. In February 2025, European Commission President Ursula von der Leyen and Indian Prime Minister Narendra Modi publicly committed to concluding the FTA by the end of the year. The negotiating teams have since met with unprecedented regularity, culminating most recently with the fourteenth round of negotiations held in Brussels from October 6 to 10 by the Indian delegation led by Piyush Goyal, Minister of Commerce and Industry. “Official optimism” has taken over. AsThe Hindu quoted an unnamed EU official: “I cannot imagine a scenario in which we would not be close or would not have concluded the FTA by the end of the year. »
Some long-standing disputes, such as those over intellectual property, have been partially resolved. Others, such as worker mobility and visa regimes, remain controversial. New challenges have also emerged, mainly centered on the EU’s climate agenda. India has expressed strong objections to the Carbon Border Adjustment Mechanism (CBAM), which will impose levies on imports from carbon-intensive producers outside the EU from January 1, 2026, and the Corporate Sustainability Reporting Directive (CSRD), which mandates detailed environmental, social and governance (ESG) disclosures. The EU, however, shows no sign of backing down from these pillars of its Green Deal, while India seeks guarantees for its national industries.
For now, political optics and the lure of announcing a historic pact before the end of the year may well push both sides toward compromise. Yet, as with all trade deals, the real impact will lie in the fine print, where the balance between economic ambition and environmental responsibility will ultimately be struck.
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