Negotiators from India and the EU began negotiations on Monday to resolve outstanding issues in the draft free trade agreement, as the deadline to conclude the negotiations approaches, the commerce ministry said.
A team of European Union (EU) negotiators is in New Delhi from November 3 to 7 to negotiate the proposed free trade agreement (FTA) with their Indian counterparts.
The week’s deliberations will focus on key areas including trade in goods, trade in services, rules of origin, among others, as well as technical and institutional issues.
“These commitments aim to resolve key outstanding issues and advance the agreement towards a balanced and equitable framework that benefits both parties,” the ministry said in a statement.
This visit follows the official visit of the Union Minister of Commerce and Industry, Piyush Goyal, to Brussels (27-28 October 2025), where he held forward-looking talks with Maros Sefcovic, European Commissioner for Trade and Economic Security.
“These consultations reaffirm the commitment of both parties to intensify their engagement and facilitate a comprehensive trade agreement,” the statement said.
As part of the visit, Sabine Weyand, Director-General for Trade at the European Commission (EU DG Trade), will travel to New Delhi on November 5-6 for high-level talks with Indian Commerce Secretary Rajesh Aggarwal on key technical and policy issues.
Issues that need to be resolved include steel, automobiles and the EU carbon tax.
India also committed to ensuring removal of tariff and non-tariff barriers in the agreement, besides creating transparent and predictable regulatory frameworks to boost bilateral trade.
The EU announced regulations such as CBAM and EUDR (Deforestation Regulation), which India strongly opposed.
Under the CBAM, Indian exports of steel, aluminum and cement to the EU could face tariffs of 20 to 35 percent.
India has highlighted the need for preferential treatment for its major demands, particularly those relating to labor-intensive sectors.
Engagements between the two sides intensified as they decided to conclude negotiations by December.
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. It was blocked in 2013 due to differences in the level of market opening.
India’s bilateral merchandise trade with 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 about 17 percent of India’s total exports, and the bloc’s exports to India constitute 9 percent of its total overseas shipments.
In addition to significant reductions in customs duties 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.
Also read: India-EU FTA: Over 50% of chapters of trade deal agreed, says Piyush Goyal
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