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India and the EU resumed the ALE negotiations in New Delhi from May 12 to 16, 2025, aimed at finalizing the first phase of the agreement. -
India-EU trade in goods reached 124 billion euros in 2023 (12.2% of the total trade in India). -
The trade in services reached 60 billion euros in 2023, the digital services forming a third of the total.
India and the European Union (EU) started the second cycle of negotiations on the project Free trade agreement (ALE) Here today, in order to finish the first phase of the historic pact. Negotiations that will continue until May 16, reflect the commitment of the two parties to overcome the differences that had lasted for a long time and to strengthen economic cooperation.
A senior government official confirmed that the Indian Secretary of Commerce had recently chaired an exam meeting with senior trade officials to prepare for negotiations. Talks are likely to focus on the main areas of disagreement, with the demanding reduction in prices for cars, alcohol such as wine and whiskey and certain agro-products. India, on its part, is looking for better access and better reduction in prices for its main exports of pharmaceutical products, textiles and clothing.
The European Union is still among the main business partners in India, with the trade in goods worth 124 billion euros in 2023, or 12.2% of the country’s total trade. The trade in services has also experienced significant growth, reaching nearly 60 billion euros in 2023 – almost double the amount observed in 2020. Digital services contributed around a third of the total, according to data from the World Economic Forum.
Although a dramatic expansion of 90% of trade over the past decade has experienced Ale talks on several occasions delayed by disagreements in sensitive areas such as agriculture, car imports and drug regulations, a recent high -level political impetus should accelerate the process.
The Indian Minister of Commerce and Industry Piyush Goyal and the European Commissioner for Commercial Security and the Economy Maros Sefcovic met in Brussels on May 1 to reiterate their mutual commitment to finalize the Indian-EU FTA by the end of 2025. In an official declaration after the meeting, the two leaders have focused on the need to solve the problems linked to respect and pragmatism.
This series of discussions is an important step in our quest to deepen economic ties. Our goal is to expand market access, develop trust and diversified supply chains and deepen our strategic partnership, “said Goyal.
The Minister also underlined the innovation, competitiveness and the role of investment and qualified mobility as essential elements of a commercial pact oriented towards the future. He underlined the shared vision of Prime Minister Narendra Modi and the president of the EU Ursula von der Leyen, described during the visit of the college of EU commissioners in India in February 2025, which lent strategic councils to negotiations.
A joint declaration stressed that India and the EU are firmly in their commitment to a commercially significant, balanced and fair agreement which creates economic resilience, inclusive growth and sustainable development for both parties.
Fresh commitment reflects the meaning that each side attaches to the finalization of a complete and Strategic Commerce Pactwhich would be a keystone of their economic partnership in the foreseeable future.
Negotiators aimed at making significant progress this week, the current series of talks can open the way to a stronger and mutually beneficial partnership between the largest democratic economy in the world and the European block in 27 countries.