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15-09-2025
Bureau Report + Agencies
NEW DELHI/ BRUSSELS: Trade talks between India and the European Union have entered a crucial phase and negotiators are working intensively to meet a year-end deadline for signing the free trade pact, a top European Union Official said on Tuesday.
The EU is India’s biggest trading partner in goods, with bilateral trade hitting $137.5 billion in the 2023/24 fiscal year, up nearly 90% over the past decade.
“We are now maximizing our efforts to finalize negotiations by the end of the year,” Maros Sefcovic, EU trade chief, said at an event, noting they were working on a deal to “unlock investment, reduce barriers, expand market access, and enhance supply chains, to the benefit of both sides.”
Negotiations, relaunched in 2022, have gained pace since the re-election of US President Donald Trump. Faced with Trump’s tariffs, Brussels has accelerated its push for trade alliances, sealing deals with Mexico and the South American Mercosur countries and stepping up talks with India, Indonesia and the United Arab Emirates.
Echoing Sefcovic’s comments, India’s Trade Minister Piyush Goyal said negotiators were working hard for a balanced and mutually beneficial deal that would unlock opportunities for both sides in trade, investment, technology transfer, and deeper economic engagement.
Sefcovic is joined in Delhi by European Agriculture Commissioner Christophe Hansen, who is holding decisive negotiations this week to resolve differences over agriculture, dairy and non-tariff barriers.
The EU has sought steep duty cuts on vehicles, medical devices, wine, spirits and dairy products, while India is pressing for greater access for its textiles, pharmaceuticals, steel and petroleum products, officials have said.
The deal had been delayed for many years by New Delhi’s reluctance to lower tariffs in some areas. The European Union wants India to lower tariffs of more than 100% on imported cars, whiskey and wine.
Earlier, India and the European Union are holding potentially decisive trade negotiations in New Delhi this week, seeking to resolve differences over agriculture, dairy and non-tariff barriers to meet an ambitious end of year deadline for a deal, Indian government and EU sources said.
New Delhi is seeking to deepen global partnerships after US President Donald Trump doubled tariffs on Indian goods to 50% last month over India’s Russian oil purchases, hitting exports such as textiles, leather and chemicals.
Negotiations, relaunched in 2022, have gained pace since Trump’s re-election. Brussels too, faced with Trump’s tariffs, has accelerated its push for trade alliances, sealing deals with Mexico and the South American Mercosur countries and stepping up talks with India, Indonesia and the United Arab Emirates.
A pact with the EU could also draw India closer to the West, after unease over Prime Minister Narendra Modi’s recent visit to China for a summit attended by Russian President Vladimir Putin and other leaders.
“Talks with the EU are progressing well,” an Indian government source said, citing Modi’s call with European Commission President Ursula von der Leyen last week, when both leaders pledged to conclude a deal this year.
So far 11 of the 23 chapters under negotiations have been finalized, covering customs, digital trade, intellectual property, competition, subsidies, dispute settlement and anti-fraud measures, the source said but sticking points remain.
