India, EU Begin Fresh Round of Free Trade Talks in New Delhi
- India and EU resumed FTA negotiations in New Delhi from May 12–16, 2025, aiming to finalize the first phase of the deal.
- India-EU trade in goods reached €124 billion in 2023 (12.2% of India’s total trade).
- Trade in services hit €60 billion in 2023, with digital services forming one-third of the total.
India and the European Union (EU) have started the second round of negotiations on the proposed Free Trade Agreement (FTA) here today with the objective of completing the first phase of the historic pact. The negotiations that will go on till May 16 reflect both sides' commitment to overcome differences that had lasted long and strengthen economic cooperation.
A top government official confirmed that India's Commerce Secretary recently chaired a review meeting with top trade officials to prepare for negotiations. The talks are likely to focus on major areas of disagreement, with the EU demanding reduction in tariffs for cars, liquor such as wine and whiskey, and certain agri-products. India, on its part, is seeking better market access and reduction in tariffs for its major exports of pharmaceuticals, textiles, and clothing.
The European Union is still among India's leading trade partners, with goods trade worth €124 billion in 2023, or 12.2% of the country's total trade. Service trade also saw a significant growth, reaching nearly €60 billion in 2023 — close to twice the amount seen in 2020. Digital services contributed approximately one-third of the total, according to World Economic Forum data.
Although a dramatic 90% expansion of trade over the last decade has seen FTA talks repeatedly delayed by disagreements in such sensitive areas as agriculture, car imports, and drug regulations, recent high-level political impetus is set to speed the process.
India's Commerce & Industry Minister Piyush Goyal and European Commissioner for Trade and Economic Security Maros Sefcovic met in Brussels on May 1 to reiterate their mutual commitment to finalizing the India–EU FTA by the end of 2025. In an official statement after the meeting, both leaders emphasized the need to resolve outstanding issues with mutual respect and pragmatism.
This round of discussions is an important step in our quest to deepen economic connections. Our aim is to expand market access, develop trusted and diversified supply chains, and deepen our strategic partnership", Goyal stated.
The minister also stressed innovation, competitiveness, and the role of investments and skilled mobility as essential elements of a future-oriented trade pact. He underlined the shared vision of Prime Minister Narendra Modi and EU President Ursula von der Leyen, outlined during the visit of the EU College of Commissioners to India in February 2025, which lent strategic guidance to the negotiations.
A joint statement emphasized that India and the EU are steadfast in their commitment to a commercially significant, balanced, and equitable agreement that creates economic resilience, inclusive growth, and sustainable development for both sides.
The fresh engagement reflects the significance each side attaches to finalizing a comprehensive and strategic trade pact, which would be a keystone of their economic partnership in the foreseeable future.
With negotiators aiming to make significant progress this week, the current round of talks may pave the way for a stronger, mutually beneficial partnership between the world’s largest democratic economy and the 27-nation European bloc.
