Commerce and Industry Minister Piyush Goyal is scheduled to visit Brussels on January 8-9, 2026, to give impetus to the negotiations for the proposed free trade agreement (FTA) between India and the European Union (EU). This visit signals a crucial phase in the FTA discussions as both sides aim to resolve the remaining issues and finalize the long-awaited trade pact.
Goyal's Brussels visit comes at a time when both India and the EU are showing strong intent to conclude the agreement amid evolving global trade dynamics and geopolitical uncertainties. The EU is currently India's third-largest trading partner, and a comprehensive trade agreement is expected to significantly boost bilateral trade, investment flows, and technology cooperation. In 2023, the EU accounted for 12.2% of India's total trade, with trade in goods worth €124 billion. Trade in services between the EU and India reached €59.7 billion in 2023, a significant increase from €30.4 billion in 2020.
Before arriving in Brussels, Goyal will visit Liechtenstein on January 7. His visit to Brussels follows a period of intensified engagement between India and the EU, including a visit from EU Trade Commissioner Maros Sefcovic earlier this month. Goyal and Sefcovic had already held extensive negotiations to push the FTA towards conclusion.
Several rounds of negotiations have already taken place this year, addressing various aspects such as market access for goods and services, investment protection, government procurement, and sustainability. While differences have narrowed, some sensitive issues remain. India is keen on a "balanced and mutually beneficial" FTA, with safeguards for sectors like agriculture, dairy, and MSMEs. The EU, on the other hand, seeks greater market access and regulatory certainty in India.
One of the key challenges in the negotiations is the EU's Carbon Border Adjustment Mechanism (CBAM). Commerce Secretary Rajesh Agrawal has acknowledged that the negotiations have entered a difficult stage, with both sides working to bridge the differences and close the talks soon.
The India-EU trade pact covers 23 policy areas, including trade in goods, services, investments, intellectual property rights, and sustainable development. Besides the main FTA, both sides are also negotiating agreements on Geographical Indications and Investment Protection.
Notably, EU leaders, including European Commission President Ursula von der Leyen and European Council President Antonio Costa, are expected to be the chief guests at India's Republic Day celebrations. The India-EU summit is scheduled to be held a day later, co-chaired by PM Modi.
If the trade pact is successful, Indian goods exports to the EU, such as ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery, will become more competitive.
