India and the European Union are on the right track to finalize a complete free trade agreement (ALE) by the end of the year, moving away from the previous plan of a provisional or early harvest agreement, a senior official said on Tuesday. However, the investment protection treaty that accompanies it and the pact on geographic indications (GIS) may not be concluded simultaneously.
“The situation remains dynamic,” said the manager, noting that negotiations for the broad trade agreement are progressing rapidly. The transition to a full agreement underlines the commitment on both sides to establish a robust and long -term economic partnership.
The discussions for a complete commercial trade in India -EU – which also includes an investment treaty and a GI agreement – were relaunched in June 2022 after a gap of more than eight years. Negotiations had stalled in 2013 due to differences in market access and regulatory standards.
A geographical indication, or GI, refers to a product – generally agricultural, natural or manufactured – which comes from a specific geographical region and carries a reputation or characteristics specific to this location. Examples include Darjeeling Tea and Banarasi Sarees.
Earlier this year, Prime Minister Narendra Modi and the president of the European Commission Ursula von der Leyen agreed to accelerate the talks and conclude the trade agreement by the end of 2024.
Current negotiations cover 23 critical political areas, including trade in goods and services, investment, rules of origin, technical obstacles to trade, health and phytosanitary measures, government purchases, intellectual property rights, dispute resolution and sustainable development.
The European Union is currently the largest trading partner in India in goods. Bilateral trade amounted to 137.41 billion dollars in 2023-2024, with Indian exports to the EU amounting to $ 75.92 billion and imports to $ 61.48 billion.
Speaking after a meeting with trade and the Minister of Industry Piyush Goyal, the French Minister of Foreign Trade Laurent Saint-Martin expressed his optimism as to the calendar. “I am quite optimistic about the fact that we can have an agreement in the weeks or months to come. We must demonstrate to the world our commitment to trade, freer trade and not commercial wars,” he said.
The push to conclude a complete agreement reflects the growing alignment between India and the EU on global commercial standards, sustainability and economic cooperation – marking a significant step in bilateral links.
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