India and EU Push to Seal Long-Pending Free Trade Agreement by Year-End

Picture Credit: uk.finance.yahoo.com

India and the European Union (EU) are set to begin the 14th round of negotiations for their long-awaited Free Trade Agreement (FTA) in Brussels on Monday, with hopes of finalising the deal by the end of 2025. The five-day talks, starting October 6, will bring together senior officials from both sides to iron out remaining differences and accelerate progress toward an agreement.

Commerce and Industry Minister Piyush Goyal recently voiced optimism that the FTA will be signed soon. He is expected to meet EU Trade Commissioner Maros Sefcovic later this month in South Africa to review the negotiation progress. The EU and India have agreed on December as the tentative deadline to conclude the discussions.

The proposed FTA, revived in June 2022 after an eight-year suspension, aims to enhance two-way trade and investment flows. Earlier talks were halted in 2013 due to disagreements on market access. The EU is seeking substantial tariff reductions on automobiles, medical devices, and imported goods such as wine, spirits, meat, and poultry, along with stronger intellectual property protections.

For India, the pact could provide a major boost to exports of ready-made garments, pharmaceuticals, steel, petroleum products, and electrical machinery by making them more competitive in European markets.

Picture Credit: business-standard.com

Negotiations currently span 23 policy areas, including goods and services trade, investment, intellectual property rights, and sustainable development.

The EU remains India’s largest trading partner, with bilateral trade in goods reaching $136.53 billion in 2024 - 25 Indian exports totaling $75.85 billion and imports at $60.68 billion. Services trade between the two sides was valued at $51.45 billion in 2023. Both partners hope the FTA will further strengthen their economic ties and open new avenues for cooperation.