India-EU free trade agreement sees significant progress

Recent high-level meetings set the stage for a robust trade pact aimed at strengthening bilateral economic ties

January 24, 2025

Both leaders outlined political directions to expedite a mutually beneficial trade agenda and address global challenges

The 10th round of FTA talks is scheduled for March 10–14 in Brussels, building on progress made in the ninth round

Negotiations resumed in June 2022 after an eight-year gap, focusing on goods, services, investment, and government procurement

India-EU trade reached US$180 billion in 2023–24, with India exporting US$106.31 billion in goods and services and the EU exporting US$94.79 billion

According to an official statement, negotiations for the India-European Union (EU) Free Trade Agreement (FTA) have made substantial progress. The update follows Commerce and Industry Minister Piyush Goyal’s visit to Brussels, where he held discussions with European Trade Commissioner Maros Sefcovic.

During the meeting, the two leaders reviewed the ongoing negotiations and agreed to advance a commercially meaningful trade agenda. They emphasised developing a mutually beneficial FTA and accelerating discussions to address global economic challenges. The meeting also provided political direction to negotiation teams to expedite trade pact work.

The 10th round of negotiations is set to take place from March 10 to 14 in Brussels. In the ninth round, discussions covered a range of issues, including goods, services, investment, government procurement, rules of origin, sanitary and phytosanitary (SPS) measures, and technical trade barriers.

India and the 27-nation EU bloc resumed talks in June 2022 after an eight-year hiatus, following a breakdown in 2013 due to unresolved differences. Since then, both sides have worked toward bridging gaps to finalise a robust agreement.

Trade between India and the EU stood at US$180 billion in 2023–24. India’s exports included US$75.18 billion in goods and US$31.13 billion in services, while the EU’s exports comprised US$63.44 billion in goods and US$31.35 billion in services. The EU also remains a significant source of foreign direct investment, with cumulative FDI reaching US$117.34 billion.

The ongoing negotiations highlight a shared commitment to strengthening bilateral economic ties. With the 10th round of discussions on the horizon, both sides are optimistic about achieving a comprehensive and balanced trade pact.

Source: Economic Times

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