“Both sides agreed that issues related to steel, automobile, CBAM and other EU regulations still require further discussions, as these issues are more sensitive,” the government said. India recognizes the importance of ensuring that the FTA remains balanced by addressing both tariff and non-tariff barriers and creating transparent and predictable regulatory frameworks that accelerate trade for both partners in the years to come, it added.
Commerce Minister Piyush Goyal held talks on the trade deal with the EU during his visit to Brussels from October 26-28, the statement said. Goyal’s visit follows the conclusion of the 14th round of talks between the two sides from October 6-10.
Engagements between the two sides intensified as they decided to conclude negotiations by December.
Commerce Secretary Rajesh Agrawal also held discussions with European Commission (EC) Director-General for Trade (DG-Trade), Sabine Weyand, in Brussels.
In June 2022, India and the European bloc resumed negotiations for a comprehensive FTA, an agreement on investment protection and a pact on geographical indications after a gap of more than eight years. Bilateral merchandise trade between India and the EU stood at $136.53 billion in 2024-25 ($75.85 billion in exports and $60.68 billion in imports), making it the largest merchandise trading partner. The EU market accounts for around 17 percent of India’s total exports, and the bloc’s exports to India constitute 9 percent. of its total shipments abroad.
In addition to demanding significant reductions in tariffs on automobiles and medical devices, the EU wants reduced taxes on other products such as wine, spirits, meat, poultry, as well as a strong intellectual property regime.
Exports of Indian products to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products and electrical machinery, can become more competitive if the deal is concluded.
Negotiations on the India-EU trade deal cover 23 policy areas or chapters, including trade in goods, services, investments, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute resolution, intellectual property rights, geographical indications and sustainable development.
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