India-EU trade pact to continue in September

By Admin

16 Jul, 2025

India and the European Union (EU) are set to resume their crucial negotiations on the proposed Free Trade Agreement (FTA) in the first week of September, signaling continued momentum toward one of the most comprehensive trade pacts in recent years. This comes after both sides exchanged offers on services and non-services sectors during the 12th round of talks held last week in Brussels.

L Satya Srinivas, Special Secretary in the Department of Commerce, confirmed that discussions covered key areas including market access for goods and services. “We have exchanged our offers on services and non-services… there were discussions on that. We also discussed key interests in market access related to goods as well,” Srinivas stated.

A Pact Years in the Making

After a hiatus of over eight years, India and the 27-member EU bloc resumed negotiations in June 2022 for three major agreements:

• A Comprehensive Free Trade Agreement (FTA)
  
  

• An Investment Protection Agreement
  
  

• A Geographical Indications (GIs) Agreement
  
  

Talks had previously stalled in 2013 due to differing views on market liberalization levels. However, in a significant development on February 28, 2024, Prime Minister Narendra Modi and the President of the European Commission reaffirmed their commitment to finalize the trade deal by the end of this year.

Key Demands and Interests

The EU has placed a strong emphasis on:

• Duty reductions on automobiles and medical devices
  
  

• Lower tariffs on products such as wine, spirits, meat, and poultry
  
  

• A robust intellectual property rights regime
  
  

From India’s perspective, the FTA could unlock greater competitiveness for exports such as:

• Ready-made garments
  
  

• Pharmaceuticals
  
  

• Steel
  
  

• Petroleum products
  
  

• Electrical machinery
  
  

Scope of the Agreement

The proposed FTA is ambitious in scope, covering 23 policy areas, including:

• Trade in Goods and Services
  
  

• Investment
  
  

• Sanitary and Phytosanitary Measures
  
  

• Technical Barriers to Trade
  
  

• Customs and Trade Facilitation
  
  

• Rules of Origin
  
  

• Intellectual Property Rights
  
  

• Government Procurement
  
  

• Dispute Settlement
  
  

• Sustainable Development
  
  

Bilateral Trade Snapshot

India and the EU share a robust trade relationship:

• Goods trade in 2023–24 reached USD 137.41 billion
  
  

• Exports from India: USD 75.92 billion
  
  

• Imports from the EU: USD 61.48 billion
  
  

• Services trade in 2023 stood at USD 51.45 billion
  
  

The EU remains India’s largest trading partner for goods, accounting for 17% of India's total exports, while India represents 9% of the EU’s global exports.

Conclusion

With high-level political commitment, growing economic interdependence, and clear mutual benefits, the India-EU Free Trade Agreement is poised to reshape trade dynamics for both parties. The upcoming round of talks in September will be critical to addressing unresolved issues and moving closer to finalization. Stakeholders across industries should closely watch this evolving partnership that holds the potential to boost market access, investment, and long-term economic cooperation.