India and the European Union are set to hold the 13th round of negotiations for their long-awaited Free Trade Agreement (FTA) in Delhi this week, with both sides aiming to finalize the deal by the end of the year. This round of talks, commencing on Monday, September 8, 2025, signals a renewed push to strengthen ties and unlock the vast potential of economic cooperation between the two regions.
The EU's Trade Commissioner, Maroš Šefcovic, is expected to visit India this week, underscoring the importance both sides place on reaching an agreement. High-level engagements are planned to boost cooperation in areas ranging from trade to counterterrorism and the Indo-Pacific, setting the stage for the India-EU summit early next year. The EU is scheduled to unveil its vision for a new strategic agenda with India on September 17, which is expected to reinforce the strategic partnership in areas like technology, trade, mobility, and defense and security.
Both sides have expressed optimism about the progress of the negotiations. Indian trade minister Piyush Goyal highlighted the "rapid progress" made in discussions with the EU. External Affairs Minister S Jaishankar stated that the India-EU FTA could help stabilize the global economy. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen have stressed the need for immediate progress to achieve an agreement this year.
The negotiations aim to remove barriers and help EU firms, especially smaller ones, to export more, open up services and public procurement markets, ensure the protection of geographical indications, pursue ambitious commitments on trade and sustainable development, and ensure that the agreed rules are enforceable. The investment protection negotiations aim to provide investors from both sides with a predictable and secure investment environment, through commitments on non-discrimination, protection against expropriation without compensation and unfair treatment of investors and their investments, while preserving the right to regulate, and transfer of returns.
While 12 of the 24 chapters have been closed, including those on SMEs, transparency, dispute settlement, and customs and trade facilitation, the upcoming round is expected to tackle more complex issues such as rules of origin and tariffs on products like wine and dairy. The 13th round in New Delhi is expected to address finalization of offers in goods and services, the investment facilitation chapter, digital trade framework, sustainable development clause, and dispute settlement mechanisms.
The EU is India's largest trading partner, accounting for €124 billion worth of trade in goods in 2023, or 12.2% of total Indian trade. India is the EU's 9th largest trading partner, accounting for 2.2% of the EU's total trade in goods in 2023. Trade in services between the EU and India reached €59.7 billion in 2023, up from €30.4 billion in 2020. A successfully concluded FTA is expected to further boost trade and investment flows, creating new opportunities for businesses and driving economic growth in both regions. The FTA is also part of a larger plan for closer ties in technology, security, and politics, meaning more opportunities for startups, jobs, and innovation on both sides.
Amid global economic uncertainty and trade tensions, the India-EU FTA has taken on greater significance. The agreement is expected to help diversify supply chains and reduce reliance on any single market. Both sides are also keen to strengthen cooperation on issues such as counterterrorism and the Indo-Pacific, reflecting a shared commitment to regional security and stability.
