As the December 2025 deadline approaches, India and the European Union (EU) are intensifying efforts to finalize a comprehensive Free Trade Agreement (FTA). Recent developments signal a renewed commitment to resolving outstanding issues and achieving a mutually beneficial trade deal.
Indian Commerce and Industry Minister Piyush Goyal is in Brussels on October 27th for crucial discussions with his EU counterpart, Executive Vice-President and European Commissioner for Trade, Maros Sefcovic. Goyal's two-day visit aims to provide "political impetus" and strategic direction to the negotiations, focusing on key areas such as market access, non-tariff measures, and regulatory cooperation. The discussions will also assess the progress made thus far and pinpoint areas needing further alignment.
This high-level engagement follows the 14th round of FTA negotiations held earlier in October. While that round yielded some progress, significant differences persist in critical sectors like automobiles, steel, and non-tariff barriers. Both sides are determined to tackle these outstanding issues head-on.
In addition to Minister Goyal's visit, an EU delegation is scheduled to arrive in New Delhi this week for ongoing consultations. The delegation, comprising members from the EU Committee on International Trade, will engage in discussions from October 27 to 29, focusing on trade, economic, and investment relations. Led by Cristina Maestre, the committee's standing rapporteur for India, and Brando Benifei, the delegation aims to foster mutual understanding amid ongoing intensive trade negotiations.
India and the EU resumed negotiations for a comprehensive FTA in June 2022, after a gap of over eight years. The negotiations cover 23 policy chapters, including trade in goods and services, investment, intellectual property rights, geographical indications, sustainable development, and dispute resolution.
The FTA aims to significantly boost trade ties between India and the EU. In 2024-25, bilateral trade in goods reached USD 136.53 billion, with Indian exports totaling USD 75.85 billion and imports amounting to USD 60.68 billion. The EU is India's largest trading partner for goods, accounting for approximately 17% of India's total exports.
Both sides have expressed a strong commitment to meeting the December 2025 deadline for finalizing the FTA. Prime Minister Narendra Modi and European Commission President Ursula von der Leyen reiterated this commitment last month. The continuous engagement at both the negotiator and political levels underscores the determination to meet this deadline.
The EU Council recently adopted the EU-India Strategic roadmap, expected to be officially adopted at the EU-India Summit in early 2026. The new agenda is built around greater cooperation in trade and investment, technology and defense, connectivity, and climate action.
While progress has been made, challenges remain. The EU seeks duty cuts on automobiles and medical devices, as well as tax reductions on products like wine, spirits, meat, and poultry, alongside a robust intellectual property regime. Successfully navigating these complexities will be crucial to achieving a comprehensive and mutually beneficial FTA by the December deadline.
