New Delhi: Finance Minister Nirmala Sitharaman recently engaged in a meeting with a European Union (EU) delegation to discuss and strengthen trade and investment ties between India and the EU. The meeting underscores the commitment of both sides to foster a robust economic partnership in the post-pandemic era.
Both India and the EU recognize the potential for synergized cooperation to create strong global value chains that are transparent, viable, inclusive, and rules-based. During the meeting, both parties expressed eagerness to advance negotiations on the Bilateral Investment Treaty, Free Trade Agreement (FTA), and Geographical Indications Agreement.
India and the EU resumed negotiations for a comprehensive FTA, an investment protection agreement, and a pact on geographical indications in June 2022, following a hiatus of over eight years. The negotiations had been stalled since 2013 due to disagreements on the extent of market opening, particularly in the agriculture sector.
The EU was India's largest trading partner for goods in 2024-25, with bilateral trade valued at USD 136.53 billion, comprising USD 75.85 billion in exports and USD 60.68 billion in imports. The EU market accounts for approximately 17% of India's total exports. A successful trade agreement could enhance the competitiveness of Indian exports to the EU, including ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery.
The India-EU trade pact negotiations encompass 23 policy areas, including trade in goods, services, investment, trade remedies, rules of origin, customs and trade facilitation, competition, government procurement, dispute settlement, intellectual property rights, geographical indications, and sustainable development.
Currently, the EU seeks significant duty cuts on automobiles and medical devices, as well as tax reductions on wine, spirits, meat, and poultry products. A strong intellectual property regime is also a priority for the EU.
India has set an ambitious target of $2 trillion in exports by 2030, and the ongoing FTA negotiations with the EU are crucial to achieving this goal. India has already finalized trade deals with the UAE, Australia, and the European Free Trade Association bloc, and has concluded negotiations with the United Kingdom.
The recent meeting with the EU delegation, follows the conclusion of the 14th round of talks between India and the EU from October 6 to October 10. India's Commerce Secretary, Rajesh Agrawal, has also engaged in discussions with European Commission (EC) Director General for Trade (DG-Trade), Sabine Weyand, in Brussels. Engagements between the two sides have increased as they aim to conclude the negotiations by December.
