Trade talks with EU have reduced ‘outstanding issues’, says Goyal

India and the European Union have “significantly” narrowed the gaps in their negotiating positions after three days of trade talks in Brussels, Minister of Commerce and Industry Piyush Goyal said on Tuesday evening, October 28, 2025.

Mr. Goyal and his European counterpart, Commissioner Maroš Šefčovič, held discussions to provide political momentum to help push India-EU Free Trade Agreement (FTA) negotiations across the finish line.

“The negotiations have significantly narrowed down our outstanding issues and allowed us to create the framework that will help create a win-win situation for our economies,” Goyal said on X, calling the discussions “intense” but “very productive.”

Mr Goyal released a video statement from the two ministers, in which Mr Šefčovič described the negotiations as having taken place in an atmosphere of “full transparency and trust”. The commissioner also said “further work is needed.” He said substantial progress had been made in a number of areas and the parties had provided specific guidance to their teams on industrial tariffs.

Mr Šefčovič confirmed that a high-level EU trade delegation led by Director-General Sabine Weyand would visit New Delhi next week to conclude “technical tariff negotiations”. A European Parliament trade delegation is in New Delhi this week to better understand the challenges and opportunities presented by trade negotiations.

Controversial issues

Among the sticking points are tariffs on agricultural products, a sensitive area for both sides and particularly for India. Customs tariffs on European automobiles sold in India have also been under discussion in recent weeks. Regulatory issues, notably the EU carbon tax on imports (Carbon Border Adjustment Mechanism), have been controversial issues to resolve.

A government account of the meeting said further discussions were needed on particularly sensitive issues such as CBAM, steel and auto-related trade. Mr. Goyal insisted on preferential treatment for India’s key demands, particularly with regard to labour-intensive sectors, according to the government.

“There was intensive engagement to explore possible landing zones on outstanding issues. There was also good discussion on India’s concerns regarding non-tariff measures and new EU regulations,” the government statement said.

Prime Minister Narendra Modi and European Commission President Ursula von der Leyen favored an end-of-year deadline for the FTA, with the 14th round of negotiations ending on October 10 in Brussels. The Hindu had announced on October 11 that negotiations would continue between formal rounds as the parties strive to meet the deadline.

During the EU visit to India next week, the two sides will consider concluding negotiations based on potential solutions identified over the past few days, according to the government statement.