Trade negotiations between India and the European Union have entered a decisive stage, with negotiators working intensively to meet a year-end deadline for finalizing a free trade agreement.
The EU remains India’s largest trading partner in goods, with bilateral trade reaching $137.5 billion in the 2023/24 fiscal year, nearly double the volume of a decade ago.
“We are now maximising our efforts to conclude the negotiations by the end of the year,” said EU trade chief Maros Sefcovic at an event. He added that the agreement aims to “unlock investment, reduce barriers, expand market access, and strengthen supply chains for the benefit of both sides.”
Talks, relaunched in 2022, have gained fresh momentum following the re-election of U.S. President Donald Trump. In response to Trump’s tariff policies, Brussels has accelerated its pursuit of trade alliances, recently finalising agreements with Mexico and the Mercosur bloc while intensifying negotiations with India, Indonesia, and the UAE.
India’s Commerce and Industry Minister Piyush Goyal echoed Sefcovic’s optimism, stressing that both sides were striving for a balanced, mutually beneficial pact that would expand trade and investment opportunities, foster technology transfer, and deepen overall economic engagement.
EU Agriculture Commissioner Christophe Hansen is in New Delhi this week to lead critical discussions on agriculture, dairy, and non-tariff barriers long-standing points of contention in the talks.
Officials say the EU is pushing for steep tariff cuts on automobiles, medical devices, wine, spirits, and dairy products. India, in turn, is seeking greater access for its textiles, pharmaceuticals, steel, and petroleum exports.
Negotiations had previously stalled for years due to India’s reluctance to slash tariffs in sensitive sectors. The EU has consistently urged New Delhi to lower duties of more than 100% on imported cars, whiskey, and wine, one of the major sticking points in the deal.