The latest round of negotiations between India and the European Union (EU) regarding the proposed Free Trade Agreement (FTA) has been described as a "missed opportunity" by EU envoy Hervé Delphin. Delphin expressed that the 13th round of talks, which occurred in September, failed to produce a breakthrough due to persistent differences on key issues such as automobiles and agriculture. Despite this setback, the EU remains committed to reaching a meaningful agreement by the end of 2025.
Delphin stressed the importance of concluding the FTA to deepen the strategic partnership between India and the EU. He urged India to engage in earnest negotiations to ensure a mutually beneficial trade deal. The EU has demonstrated its readiness to move forward and expects India to reciprocate this commitment. The next round of negotiations is scheduled to take place in Brussels starting October 6.
According to an EU report on the 13th round of talks, some progress was achieved in specific areas, including rules of origin, sanitary and phytosanitary measures, and investment. However, no additional chapters could be finalized.
In addition to the FTA, Delphin highlighted the need for both sides to finalize a new India-EU strategic roadmap, which could be endorsed at the next India-EU Summit in New Delhi in early 2026. This roadmap aims to translate ambitions into concrete actions and strengthen bilateral relations. Kaja Kallas, the EU's foreign and security policy chief, unveiled the vision for this strategic roadmap on September 17, with the goal of enhancing bilateral relations and establishing mechanisms for monitoring the implementation of decisions.
The FTA between India and the EU has been under negotiation for years, with the latest discussions hitting a snag over the issue of basmati rice. Both India and Pakistan are claiming exclusive rights to the "basmati" designation, leading to a dispute that has complicated the trade talks. India views the FTA with the EU as a crucial trade initiative, as the EU is India's third-largest trading partner, accounting for over 10% of its total trade. The agreement could provide tariff concessions for textiles, leather, pharmaceuticals, and agricultural products, enhancing the competitiveness of Indian exporters.
The EU is India's largest trading partner, and India is the EU's largest trading partner in the Global South. In 2024, bilateral trade in goods reached EUR 120 billion, marking an increase of nearly 90% over the last decade. Trade in services contributed an additional EUR 60 billion. Around 6,000 European companies operate in India, directly employing 3 million people and indirectly supporting millions more jobs. The EU's foreign direct investment in India reached EUR 140 billion in 2023, nearly doubling in five years. Both sides aim to conclude negotiations by the end of 2025.
India is also negotiating FTAs with other countries, including the United States, New Zealand, Oman, Peru, and Chile. Furthermore, India and the Eurasian Economic Union (EAEU), which includes Armenia, Belarus, Kazakhstan, Kyrgyz Republic, and Russia, have signed Terms of Reference (ToR) to begin FTA negotiations.
