Are India and the EU Ready to Advance Free Trade Talks?
Click to start listening
Synopsis
India and the EU are poised to launch a new round of free trade discussions in New Delhi, with both parties eager to finalize the first phase of their agreement. This crucial meeting aims to address vital trade issues that could reshape economic ties between the two regions.
Key Takeaways
- India and the EU are initiating a new phase of FTA discussions.
- The talks aim for an expeditious conclusion of the first phase of the agreement.
- The EU seeks lower tariffs on various imports from India.
- India aims for enhanced market access for key exports.
- Trade between India and the EU has seen a 90% growth in the last decade.
New Delhi, May 11 (NationPress) India and the European Union (EU) are set to commence the next phase of discussions regarding the proposed free trade agreement (FTA) on Monday, as both sides aim for an expeditious conclusion of the initial phase of the pact, as confirmed by a senior official.
The Commerce Secretary convened a review meeting with senior officials ahead of the talks, which are scheduled to continue until May 16.
The EU is advocating for India to reduce tariffs on various products, including cars, wine, whiskey, and select agricultural goods. Conversely, India is seeking enhanced market access and lowered tariffs for essential exports, such as pharmaceuticals, textiles, and apparel.
In 2023, the EU emerged as one of India's largest trading partners, with a trade volume amounting to 124 billion euros, which represents 12.2 percent of India's total trade.
Trade in services between India and the EU approached 60 billion euros in 2023, nearly double that of 2020. Digital services constituted a third of this figure, as reported by the World Economic Forum.
Over the last decade, trade between India and the EU has surged by approximately 90 percent. However, negotiations for a free trade pact have faced obstacles due to significant differences on issues related to agriculture, automobiles, and pharmaceuticals.
On May 1, India's Commerce & Industry Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic met in Brussels to reaffirm their mutual commitment to finalize the India-European Union Free Trade Agreement (FTA) by the end of 2025.
Both parties expressed their intention to resolve outstanding issues amicably and pragmatically in the upcoming round of discussions scheduled for May 12-16, 2025, in New Delhi, according to an official statement following their meeting.
This commitment builds upon the strategic guidance provided by Prime Minister Narendra Modi and European Commission President Ursula von der Leyen during the historic visit of the EU College of Commissioners to New Delhi in February 2025, the statement noted.
“In my fruitful dialogue with EU Commissioner for Trade and Economic Security Maros Sefcovic today, we reiterated our joint commitment to conclude the India–EU Free Trade Agreement negotiations by the end of 2025,” stated the Indian Minister.
“As we progress in our discussions, our emphasis is on enhancing market access for businesses, fostering trusted and diversified supply chains, and deepening our partnership to stimulate our economies' growth,” Goyal added.
“We also explored ways to boost innovation and competitiveness, along with the pivotal role of investments and mobility in crafting a future-ready agreement,” he elaborated.
Both India and the EU, under the leadership of Prime Minister Narendra Modi and EU President Von der Leyen, remain dedicated to pursuing a mutually advantageous and strategic agreement that promotes shared prosperity and sustainable development for their regions, Goyal concluded.
The high-level engagement emphasizes the strategic significance both partners place on establishing a commercially viable, mutually beneficial, balanced, and fair trade relationship that bolsters economic resilience and inclusive growth, as detailed in the official statement.
Point of View
The ongoing negotiations between India and the EU represent a vital opportunity for both parties to strengthen their economic ties. As a nation, India stands to gain significantly by securing better market access and reducing tariffs on essential exports. The commitment to resolving differences in a pragmatic manner reflects a mature approach to international trade. It is crucial that these discussions yield a fair and balanced agreement that benefits the economies and citizens of both regions.
NationPress
20/07/2025
Frequently Asked Questions
What is the purpose of the India-EU free trade talks?
The India-EU free trade talks aim to establish a comprehensive trade agreement that enhances market access, reduces tariffs, and fosters economic cooperation between the two regions.
When are the next round of talks scheduled?
The next round of talks is scheduled to take place from May 12-16, 2025, in New Delhi.
What are the key issues being discussed?
Key issues include tariffs on goods such as cars, wine, and agricultural products from the EU, as well as India's desire for better access to European markets for pharmaceuticals and textiles.
How significant is the EU as a trading partner for India?
The EU is one of India's largest trading partners, accounting for 12.2% of India's total trade, with a trade volume of 124 billion euros in 2023.
What has been the trend in trade between India and the EU?
Trade between India and the EU has grown by approximately 90% over the past decade, highlighting the increasing importance of this partnership.
