India-EU Trade Talks Resume: Key Focus on Tech, Energy, and Tariff Reforms

By siliconindia  |  Thursday, 27 February 2025, 10:16:55 AM IST

India-EU Trade Talks Resume: Key Focus on Tech, Energy, and Tariff Reforms
India and the European Union are to resume free-trade pact negotiations, with talks on key areas such as artificial intelligence, semiconductors, and clean energy. The resumption of talks coincides with a two-day visit by European Commission President Ursula von der Leyen to New Delhi, during which she is scheduled to hold talks with Prime Minister Narendra Modi. India's Commerce Minister Piyush Goyal will meanwhile hold talks with EU Commissioner for Trade Maros Sefcovic.
As per India's Ministry of External Affairs, the negotiations focus on enhancing cooperation in trade, investments, robust supply chains, digital technology, green hydrogen, sustainable urban development, water management, defence, and space. The EU wants reduced tariffs for automobiles and alcoholic beverages, whereas India is seeking concessions for MSMEs.
India is also expected to raise questions regarding the EU's Carbon Border Adjustment Mechanism (CBAM) and Deforestation Regulation (EUDR), which are seen by officials as being tantamount to dressed-up protection of trade. Goyal and Chief Economic Advisor V Nageswaran have even gone public mentioning these concerns as possible obstacles for free trade.
This is the EU College of Commissioners' inaugural visit as a team to India and their maiden overseas trip after assuming office in December 2024. Since entering into a Strategic Partnership in 2004, India and the EU have been engaged in off-and-on trade negotiations since 2007, with the latest round conducted in June 2022.
The EU continues to be India's biggest merchandise trading partner with bilateral trade growing to $135 billion in the fiscal year 2024. Indian exports to the EU accounted for $76 billion, whereas imports amounted to $59 billion. Trade in services reached a record $53 billion in 2023 as India exported $30 billion and imported $23 billion.

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