India and the European Union are intensifying talks to finalise their free trade agreement by year-end. The negotiations focus on resolving trade barriers while expanding strategic and defence ties amid global uncertainties.
India and the European Union are accelerating efforts on an ambitious free trade agreement (FTA), scheduling two critical rounds of negotiations within the next month to resolve longstanding differences, officials said.
A delegation of European officials is expected in New Delhi this week, with talks focusing on contentious issues such as rules of origin, market access, and duties on agricultural products, particularly wine and dairy.
The renewed push comes against the backdrop of US tariffs on India and the White House’s call for the EU to impose additional duties on Indian goods as a punitive measure for continuing crude oil trade with Russia.
Both sides aim to conclude the negotiations by the end of the year, as New Delhi seeks new markets to cushion the impact of the Trump tariff. The EU is India’s largest trade partner, with bilateral goods trade touching USD 135 billion in 2023-24.
While non-tariff barriers remain a hurdle, sources say negotiators are optimistic about bridging gaps to strike the “right equilibrium”. The commitment was reaffirmed in a recent phone call between Prime Minister Narendra Modi and top EU leaders, where both sides underscored the strategic importance of the partnership in advancing global stability and a rules-based order.
Beyond the trade pact, India and the EU are also working on a broader strategic agenda, including a new politico-strategic vision and frameworks to strengthen defence ties, steps seen as particularly significant amid growing geopolitical uncertainty.
The EU is expected to unveil its new strategic vision for ties with India on September 17, with formal adoption likely at the annual summit scheduled to be held in India early next year.
European Commission trade chief Maros Sefcovic and agriculture commissioner Christophe Hansen will be in New Delhi for high-level talks with Indian counterparts.
The next three months will see a flurry of engagements: a visit by the EU’s Political and Security Committee, comprising envoys from its 27 member states; counter-terrorism talks in Brussels; and an October visit to New Delhi by the European Parliament’s Standing Committee on Trade. The Indo-Pacific ministerial forum is slated for November 20-21, followed by the next meeting of the EU-India Trade and Technology Council (TTC).
The 13th round of FTA negotiations is scheduled in New Delhi this week, with the next round in Brussels early next month. While 11 chapters — including customs, digital trade, and dispute settlement — have already been concluded, key issues like rules of origin and market access remain unresolved.
India’s main exports to the EU include a diverse range of products, with a strong emphasis on machinery and appliances, transport equipment, chemicals, and textiles. India is also a major exporter of diesel to Europe, and trade in gems, jewellery, and pharmaceuticals is also substantial.
