India and the European Union (EU) are striving to finalize negotiations for a free trade agreement (FTA) by the end of 2025. Both sides are emphasizing the need for a mutually beneficial deal. The 13th round of FTA talks took place in New Delhi from September 8-12.

Commerce and Industry Minister Piyush Goyal stated that both sides are working to forge a "win-win partnership" through a durable trade pact. Goyal expressed these sentiments while addressing the 65th Annual Session of the Automotive Component Manufacturers Association (ACMA). European Commissioner for Trade and Economic Security, Maroš Šefčovič, echoed similar sentiments, emphasizing that despite disagreements, both sides are aligned on the goal.

Šefčovič described the prospective agreement as "ground-breaking," adding that it could help the global economy navigate turbulent geopolitical and trade conditions. He also stated that the EU and India are maximizing their efforts to finalize negotiations by the end of the year, as agreed upon by European Commission President Ursula von der Leyen and Prime Minister Narendra Modi. He believes this agreement will bring real added value to businesses and consumers in both Europe and India.

Goyal underlined the importance of striking a balanced deal, stating that "Every agreement has some give-and-take to make it balanced". Both leaders acknowledged the existence of disagreements but expressed confidence that they could be resolved to ensure a mutually beneficial outcome. Šefčovič noted that while the two sides may not agree on all issues, there are many areas where they can work together as major democracies in an increasingly uncertain world.

During recent meetings, India emphasized that meaningful progress in trade negotiations requires equal attention to non-tariff barriers (NTBs) alongside tariff discussions. India also stressed that regulatory frameworks must be inclusive, proportionate, and not restrict trade. So far, the two sides have finalized 11 chapters, including customs, trade facilitation, digital trade, and capital movements. However, significant differences remain on rules of origin, market access, and tariffs on products such as wine and dairy.

Goyal is confident that the proposed FTA would benefit the auto industry. He believes the arrangements proposed will be attractive and exciting, enabling businesses to grow, collaborate with partners from Europe and other regions, encourage innovation and research, and develop in India.

The EU is India's largest trading partner, with bilateral goods trade reaching $135 billion in 2023-24. The India-EU trade pact negotiations cover 23 policy areas or chapters, including trade in goods, trade in services, investment, and intellectual property rights. The negotiations had resumed in June 2022 after being stalled in 2013 due to differences in the level of market opening.

Goyal stated that India will benefit from the EU's economy and innovations, while the EU will benefit from India's growth story. He is looking forward to a robust, fair, equitable, balanced, mutually beneficial, and win-win partnership with the India-EU FTA.