Commerce and Industry Minister Piyush Goyal on Wednesday said significant progress has been made in negotiations with the European Union (EU) to reach a free trade agreement.
New Delhi wants to conclude the India-EU free trade agreement. The EU provides a stable market for a range of Indian goods exports. India’s exports to the EU in the last financial year stood at $82 billion, slightly less than those to the US ($86.5 billion).
“We made significant progress during my three-day visit to Brussels from October 26-28. We agreed to close 10 chapters out of 20. Another four or five chapters have been largely decided and on more and more issues we are moving towards convergence so that when their team visits next week for the next round of negotiations or when Trade Commissioner Maros Sefcovic visits India at the end of November or December, we will be able to make significant progress and We are working towards a fair, equitable and balanced FTA, recognizing mutual sensitivities and strengths and working in the spirit of partnership to promote trade, investments, technology flows, mobility, etc.
In a press release, the Ministry of Trade and Industry said, “Both sides reaffirmed their joint commitment to conclude the India-EU FTA by the end of 2025, following the clear instructions of Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the visit of the College of Commissioners to New Delhi in February 2025.”
While the EU has highlighted the importance of automobiles and beverages in the trade deal, the Department of Trade and Industry said in a statement on Wednesday that issues related to steel, automobiles, carbon tax or CBAM (Carbon Border Adjustment Mechanism) and other EU regulations still require further discussions as these “are more sensitive.”
This comes as India strives to capture more markets amid high US tariffs on Indian goods that have started to hurt exports. India’s exports of goods to the United States fell 12 percent in September, but higher shipments to the United Arab Emirates and China led to overall growth of more than 6 percent.
US President Donald Trump is scheduled to meet Chinese President Xi Jinping on Thursday. This will be Trump’s first meeting with Xi in his second term, and he is expected to sign a trade deal. It is in this context that a deal with the EU and the US assumes greater importance for India.
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“Discussions are underway with several trading partners. I will visit New Zealand next week to conclude the free trade agreement. We will sign an agreement with the EU when we reach a balanced agreement that recognizes the sensitivities of both parties,” Goyal said, emphasizing that a good deal is more important for India than any deadline.
A statement issued by the Ministry of Trade and Industry on Wednesday said there was intensive engagement to explore possible landing zones on outstanding issues, and there was also good discussion on India’s concerns over non-tariff measures and new EU regulations.
“During the negotiations, Commerce Minister Piyush Goyal highlighted the need for preferential treatment for India’s key demands, particularly those related to labor-intensive sectors. Both sides agreed to work closely to finalize non-sensitive industrial tariff lines. They also agreed that issues related to steel, automobiles, CBAM and other EU regulations still require further discussions as they are more sensitive,” the statement said.
To take the ongoing discussions forward, the EU technical team led by the Director General of Trade will visit India next week with the aim of reaching a constructive conclusion based on the potential solutions identified over the last two days, the ministry said.
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