European Commissioner for Trade Maros Sefcovic is expected to visit India next month to assess the progress of the ongoing Free Trade Agreement (FTA) negotiations between India and the European Union. The visit is anticipated to occur towards the end of the 13th round of negotiations, which is scheduled for September 8.
The primary objective of Sefcovic's visit is to evaluate the advancements made in the FTA negotiations with India's Commerce Minister, Piyush Goyal. Both India and the EU have expressed their intention to conclude the negotiations by the end of this year.
India and the European Union resumed negotiations for a free trade agreement in June 2022, after a gap of over eight years, with talks stalling in 2013 due to disagreements over the extent of market liberalization. In addition to the FTA, the two sides are also engaged in discussions regarding an investment protection agreement and an agreement on Geographical Indications (GIs).
Several sticking points remain in the FTA negotiations. These include agricultural tariffs, particularly those on dairy and wine imports, as well as automobile tariffs and regulatory barriers affecting labor-intensive goods. India is reportedly hesitant to lower import duties on automobiles and is cautious about committing to the EU's demands regarding sustainability and labor standards. Services trade is another area of contention, with India seeking easier mobility for professionals and recognition of data security under the EU's General Data Protection Regulation (GDPR). Government procurement, investment protection, and environmental regulations such as the Carbon Border Adjustment Mechanism (CBAM) are also complicating the discussions.
The EU has expressed interest in greater access to the Indian market for European winemakers, where imported wines currently face tariffs of 150%. The EU seeks to reduce these duties to 30-40%, potentially aligning with the tariff reductions offered to Australia under the India-Australia Economic Cooperation and Trade Agreement (ECTA). Both India and the EU may consider eliminating tariffs on all textiles and garments from the date the FTA comes into effect.
Despite these challenges, a successful FTA between India and the EU could significantly boost bilateral trade, which exceeded USD 190 billion in FY2024. In February 2025, European Commission President Ursula von der Leyen visited New Delhi, accompanied by 20 members of the EU's College of Commissioners, signaling the EU's commitment to strengthening its strategic partnership with India and advancing trade, economic security, and resilient supply chains. At that time, von der Leyen described India as a "strategic ally" for Europe.
