India and the European Union have reaffirmed their commitment to finalize negotiations for a free trade agreement (FTA) by the end of next month. This announcement follows the 11th India-EU Foreign Policy and Security Consultations and the Sixth Strategic Partnership Review Meeting, which took place in Brussels on November 18 and 19. Both sides are aiming for a comprehensive, balanced, and mutually beneficial trade agreement.
The week-long discussions held in New Delhi from November 3-7, 2025, involved senior negotiators from both India and the EU. These discussions covered a wide array of topics, including trade and investment, goods and services, sustainable development, rules of origin, and technical trade barriers. During the negotiations, India's Commerce Secretary Rajesh Agrawal and European Commission Director-General for Trade Sabine Weyand met to assess the progress made across various negotiating tracks. Both parties have agreed to accelerate efforts to achieve a balanced trade agreement.
The proposed FTA is expected to significantly enhance trade ties between India and the EU. In the financial year 2023-24, bilateral trade in goods between the two amounted to USD 135 billion, and the FTA aims to build on this foundation. The EU is India's biggest trade partner, further emphasizing the importance of this agreement.
While significant progress has been made, some issues remain unresolved. These include matters related to steel, automobiles, the EU's Carbon Border Adjustment Mechanism (CBAM), and certain regulatory mechanisms. The CBAM, a tariff on carbon-intensive products, has been a particular point of discussion.
Despite these challenges, both sides have expressed a strong commitment to deepening the India-EU partnership and finalizing an ambitious, forward-looking agreement. They aim to promote resilient, sustainable, and inclusive economic growth. The FTA is viewed as a "living document" that can be continuously improved upon to address any remaining issues.
In addition to the FTA, India and the EU are also working on a defence framework pact and a new strategic agenda. These initiatives are expected to be key outcomes of the India-EU summit scheduled for January 27 in New Delhi. The new strategic agenda identifies five areas of shared interest: security and defence, connectivity and global issues, prosperity, sustainability, and technology and innovation.
Both sides have also reiterated their commitment to a rules-based international order and combating terrorism. They emphasized the importance of respecting sovereignty, territorial integrity, and peaceful dispute resolution, while also calling for a comprehensive, just, and lasting peace in Ukraine, in accordance with international law and the principles of the UN charter. They also reiterated their support for a 'Peace Plan for Gaza'.
The EU is looking to collaborate with India on a broad global agenda, especially with India's upcoming BRICS chairmanship in 2026 and France's G7 chairmanship. The EU views India as a reliable partner in a volatile global environment and seeks to create predictability and integrated supply chains through this partnership.
